Next round of ETS reform + Raw materials from South America + Forced labor ban + Criticism of the Chips Act • Europe.Table

Honorary round of the ETS: between disappointment and hope
Chile instead of China: German government relies on raw materials from South America
EU Parliament calls on Commission to ban forced labor
Criticism of the Chips Act
CSAM proposal: Wissing sees line crossed
Gas storage facilities in EU over 50 percent full
Spain and Portugal may cap energy prices
Parliament pushes for convention to revise EU treaties
ECB ends bond purchases and announces first rate hike
China: green light for EU regulation on public procurement
Column: What’s cooking in Brussels

Dear reader,

The failure of ETS reform – “a bad day for Parliament”? Not everyone sees it that way. Ismail Ertug, for example, one of the Social Democrats who voted against his own party’s recommendation to phase out free emissions allowances for industry, disagrees. Ertug hopes that the renegotiations can lead to an improvement of the climate package. Lukas Scheid analyzes the lines of conflict and possible compromise solutions in the run-up to the new vote.

The German government is looking to Chile, Argentina, and Uruguay to reduce its dependence on Russia and China for raw materials and energy imports and wants to work more closely with the three South American countries. It has high hopes for Chile’s ambitions to become a pioneer in green mining. But the global search for new partners could come at the expense of the environment and human rights, warns the Supply Chain Law initiative, with an eye on countries such as Nigeria, Kazakhstan, and Saudi Arabia. An effective EU supply chain law is, therefore, more urgent than ever. Leonie Düngefeld has the details.

Picking cotton, harvesting vegetables, assembling electrical parts – jobs like these are done under duress by millions of people around the world. Yesterday, EU parliamentarians presented their recommendation for legislation on products from forced labor. Their demand: imports should be stopped at the EU borders. The US is already a step ahead, with the Uyghur Forced Labor Prevention Act coming into force in a few days. The US approach goes much further than the EU Parliament’s proposal, as Amelie Richter reports.

There is widespread agreement that the EU urgently needs to catch up in the chip industry. The European Chips Act, which was presented by the Commission with great pomp in February, has therefore been approved in principle by the member states and the EU Parliament. However, opinions differ considerably on the details. Smaller countries, for example, are afraid of being left empty-handed. Till Hoppe analyzes the main points of contention.

Your
Sarah Schaefer

Feature

Honorary lap of the ETS: between disappointment and hope

The ETS reform initially failed at its first reading in the EU Parliament. New alliances must now be forged in the Environment Committee, which will then survive the new vote in July. The lines of conflict remain the same for the time being, but new compromises could well ensure greater satisfaction.

With a slightly trembling voice, Peter Liese (EPP) had asked his EU Parliament colleagues on Wednesday to return his report on the reform of the European emissions trading system (ETS) to the committee. Liese knew at that moment that the previous failure of his text was largely his fault. As the responsible rapporteur, he had failed to form solid majorities without having to hope for votes from the ultra-conservative EKR or right-wing nationalist ID.

He should make up for that in the coming weeks, because the Environment Committee (ENVI) is now actually renegotiating. With a large majority, the MEPs finally voted to refer the text back to the committee (Europe.Table reported). It is obvious that the negotiations will not be easy due to the charged atmosphere and the mutual accusations of having made pacts with right-wingers. Liese himself called it a “bad day for the European Parliament” – as did Tiemo Wölken (S&D). Other MEPs, however, see it as a great opportunity.

Rejection not a weakness of democracy

In an interview with Europe.Table, Ismail Ertug (S&D) described it as perfectly legitimate for legislative texts to go through rounds of honor in Parliament. They often lie in the Council for years, why should it be a weakening of the democratic process if the necessary majorities are not achieved in Parliament at the first go, he asked. Ertug is part of a group of Social Democrats who voted against their own party recommendation to phase out free emissions allowances for the industry. That’s why he draws great hope from the renegotiations, which he believes could be more likely to improve the climate package.

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