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Europe.Table #211 / 22. June 2022

Second gas emergency stage + Barely any wheat exports via Poland + Commission’s autumn schedule

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Professional Briefing
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To the German edition.
  • Germany prepares second gas emergency plan alarm stage
  • Ukraine: little interest in wheat export via Poland
  • Kaliningrad: Moscow threatens Lithuania with serious consequences over transit restrictions
  • Broad support of EU states for Ukraine’s candidate status
  • SPD leader Klingbeil sees Germany as ‘leading power’
  • Poland: PiS leader Kaczyński resigns from government
  • What the Commission is planning for the fall
  • Stricter limits for harmful chemicals in waste
  • ECJ: passenger data processing only for what is absolutely necessary
  • Consumer protection: TikTok promises improvement
  • Map service: Federal Cartel Office investigates Google’s treatment of competitors
  • Profile: Brigitte Knopf – ‘unusual alliances’ for climate protection
Dear reader,

Let’s go at it again: After the failed vote two weeks ago, the EU Parliament will make another attempt today to vote on parts of the Fit for 55 package. It is about a new compromise for the reform of EU emissions trading as well as a Social Climate Fund and the introduction of the Carbon Border Adjustment Mechanism (CBAM). Last week, MEPs from EPP, S&D and Renew surprisingly quickly agreed on a compromise. Among other things, the compromise envisages that the introduction of CBAM will coincide with a reduction of free allowances from 2027 onwards and with a complete phase-out at the end of 2032.

Trilogue negotiations on the Corporate Sustainability Reporting Directive (CSRD) ended successfully yesterday. “Tonight, the EU adopts the world’s first legislation requiring large companies to document their environmental, social and human rights impacts,” announced EP rapporteur Pascal Durand (Renew). A law that is causing an uproar, especially in the SME sector: All companies with more than 250 employees and a revenue of more than €40 million – whether listed or not – will have to disclose data on the sustainability of their activities starting in 2024. Above annual revenues of €150 million, this will also apply to companies headquartered outside the EU.

According to a report in the German newspaper “Die Welt”, the German government plans to declare a state of emergency of the national gas emergency plan in the next few days. Circles inside the energy industry confirmed the report. This may have consequences for consumers; prices for natural gas could rise significantly at this stage. There is currently heated debate about the sectors in which gas consumption can be cut. So far, little attention has been paid to the public sector. Manuel Berkel reports on how great the potential for saving on the part of the state is.

The blockade of grain exports is a “real war crime,” EU High Representative Josep Borrell said this week. Wheat from Ukraine is urgently needed on the global market, and yet millions of tons are still stuck in the country. Alternative transport routes via rail and road are now supposed to make exports possible, for example through Poland. But interest in shipping wheat through the neighboring country is very limited, as Timo Landenberger found out at the Polish-Ukrainian border.

Your
Sarah Schaefer
Image of Sarah  Schaefer

Feature

Germany prepares for second gas emergency stage

In response to drastic cutbacks in Russian gas supplies, the German government plans to declare a gas emergency plan alert in the next few days, according to a media report. Energy company RWE is calling for stronger European coordination in the event of a total blackout.
By
Manuel Berkel
Image of Manuel Berkel

According to a newspaper report, the German government is preparing to declare the second alarm stage of the national emergency gas plan in a few days. The State Secretary in the Federal Ministry of Economics and Climate Protection (BMWK), Patrick Graichen, prepared the energy industry on Monday for the upcoming step, reported “Welt” yesterday with reference to industry circles. This account was confirmed on Tuesday evening in circles of the energy industry on inquiry by dpa.

Utilities were told to expect the alert level to be declared within 5 to 10 days. Upon inquiry, the ministry neither confirmed nor denied the rumor. Previously, the early warning stage had already taken effect in accordance with the European SoS regulation. The alert level is declared when gas supplies significantly decline, while the market is still able to cope with the disruption. Only at the third stage would the national regulatory authority intervene in the market.

However, the German gas industry has additional options due to the alert level. The German newspaper “Die Welt” notes that the amendment to the Energy Security Act in mid-May gave utilities the option of raising gas prices to an “appropriate level”. Suppliers who are forced to buy expensive natural gas as a substitute due to the loss of Russian supplies could then pass on their additional costs directly to their customers.

  • Energy
  • Germany
  • Natural gas
  • Russia

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