Dear reader,
Welcome to a new edition of the monthly Energy and Climate Policy Update. With the European elections in the rearview mirror, the new European Parliament came together for the first time in July – first during a plenary week in Strasbourg, where, among others, Ursula von der Leyen was reconfirmed as President of the European Commission, and then during a committee week in Brussels, where the Parliamentary committees elected their Chairs and Vice Chairs. You will find more on von der Leyen’s plans and the key energy and climate lawmakers to look out for below.
The spotlight
The Spotlight: European Commission’s priorities for the next five years
On 18 July, Ursula von der Leyen was re-elected as Commission President. Prior to the vote, she delivered a speech outlining her political guidelines for her second term. Her key commitments include appointing new European Commissioners for defence, housing, fisheries, and the Mediterranean. For your comfort, we have sorted the priorities relevant to climate and energy. Read them below!
European Prosperity Plan
Competitiveness emerged as a prominent theme in the European elections, prompting calls for a comprehensive plan to ensure the future resilience of the EU. The “European Prosperity Plan”, drawing on Enrico Letta’s recent report on the Single Market and which will also incorporate an upcoming report by Mario Draghi on competitiveness, aims to address global competition from countries like the US and China. Key components include:
- Clean Industrial Deal: A proposed “Clean Industrial Deal” within the first 100 days of the new mandate aims to support companies in their decarbonisation efforts. This includes simplifying regulations, investing in infrastructure, and ensuring access to affordable, sustainable energy. The plan proposes to enshrine a 90% emissions reduction target for 2040 in the European Climate Law. The Commission should also establish an “Industrial Decarbonisation Accelerator Act”, which should further accelerate planning and permitting processes. Von der Leyen also calls for prioritising investment in renewables, low-carbon technologies, and CO2 transport infrastructure, as well as extending the aggregate demand mechanism to include hydrogen and critical raw materials. Moreover, the Commission will develop the governance needed for a true Energy Union.
- Fuels: The guidelines note that e-fuels have a role to play in reaching climate neutrality by 2050. The Commission should therefore propose a targeted amendment to the CO2 emissions for cars and vans to solidify that role.
- Competitiveness Fund: The next European Commission plans to introduce a new “Competitiveness Fund” within the Multiannual Financial Framework to invest in strategic technologies like AI, clean tech, and biotech, as well as support Important Projects of Common Interest.
- A Circular and Resilient Economy: The plan includes a new “Circular Economy Act” to stimulate demand for secondary materials and create a unified market for waste. It also proposes a “Chemicals Industry Package” to simplify REACH regulations and clarify rules on PFAS.
- A European Biotech Act: The next European Commission plans to prioritise research and innovation by boosting research funding and introducing a new “European Biotech Act”. This initiative aims to streamline the process of advancing biotech from lab to industry, part of a broader Strategy for European Life Sciences.
- The Future of Agriculture: In the first 100 days, the Commission will reveal its “Vision for Agriculture and Food”, focusing on the long-term sustainability and competitiveness of the EU farming sector. It plans to stimulate the food value chain with targeted investments and innovations for farms.
- European Water Strategy: A “European Oceans Pact” will be introduced to strengthen the blue economy, while efforts on climate resilience will be ramped up through a “European Climate Adaptation Plan”, aimed at identifying and addressing risks. Additionally, a new “European Water Resilience Strategy” will be developed to ensure robust water management across the continent.
Von der Leyen clearly made concessions to other political groups to secure her second term. Her address aimed to resonate across the political spectrum, offering a range of promises aligned with the demands of the main Parliamentary groups. However, at the European level, there is a lack of strong political support for ambitious new nature and biodiversity policies, as evidenced by the limited number of new initiatives in these areas in von der Leyen’s plan.
Next steps
If the selection and confirmation of new Commissioners goes smoothly, we can expect the new European Commission to take place by 1 November. The new Commission is expected to publish its first working plan by early 2025, with the first new legislative initiatives to be published soon after.
Policy update
Chairs and Vice-Chairs for Environment and Industry Committees
On 23 July, the European Parliament announced the names of the Chairs and Vice Chairs for its 20 committees. Holding a Chair or Vice Chair position provides political groups with substantial influence, as these MEPs can direct discussions and set the agenda on key issues. For energy and climate, the most important committees will again be the committee on Environment, Public Health and Food Safety (ENVI) and the committee on Industry, Research and Energy (ITRE).
For ENVI, Antonio Decaro (S&D, IT) will serve as Chair, with Esther Herranz García (1st Vice Chair, EPP, ES), Pietro Fiocchi (2nd Vice Chair, ECR, IT), Anja Hazekamp (3rd Vice Chair, The Left, NL), and András Tivadar Kulja (4th Vice Chair, EPP, HU) filling the Vice-Chair positions.
In ITRE, Borys Budka (EPP, PL) will be the Chair. The Vice Chair roles will be held by Tsvetelina Penkova (1st Vice Chair, S&D, BG), Elena Donazzan (2nd Vice Chair, ECR, IT), Giorgio Gori (3rd Vice Chair, S&D, IT), and Yvan Verougstraete (4th Vice Chair, Renew, BE).
ECA report critical on Commission’s hydrogen targets
The European Court of Auditors has criticised the European Commission’s 2030 hydrogen targets as unachievable, despite praising the swift adoption of the hydrogen market rulebook. The 2020 strategy set targets of 10 million tonnes each for hydrogen production and imports, which the advisory body deems politically driven and unrealistic.
The report also highlights inefficient EU spending and fragmented funding programs, complicating project development. Although the Commission’s legal framework for renewable hydrogen received positive feedback, delays in key legislation have created market uncertainty. The ECA recommends updating the hydrogen strategy and revising the REPowerEU targets, considering market incentives, funding limitations, and geopolitical factors.
Report: EU making progress in reaching climate neutrality by 2050, but acceleration needed
According to a new assessment by the European Climate Neutrality Observatory, the EU’s transition to climate neutrality is progressing, with more than two-thirds of indicators showing improvement and ten indicators upgraded this year. Major efforts are evident in initiatives like the European Green Deal, the Fit for 55 package, and REPowerEU, which target various sectors including electricity, mobility, and industry, and introduce new cross-cutting elements.
Despite this, there are setbacks, such as short-term measures that increased fossil fuel subsidies and expanded gas infrastructure, counteracting the transition. Additionally, some policy areas, like agrifood, remain underdeveloped. While progress is visible, pace needs to increase to achieve climate neutrality by 2050.
EPP calls for revision ban on combustion engines by 2035
Documents show that the European People’s Party (EPP) supports the revision of the European-wide ban on combustion engines by 2035 to ensure that there is a pathway for new cars which run on e-fuels. This comes after the EU decided to ban sales of new petrol and diesel cars by 2035 in the EU to reduce CO2 emissions. During their work retreat in Portugal, EPP MEPs concluded that the election promise they made to reserve the ban, must be upheld.
The EPP wants to revise the CO2 rules for new cars and vans so they can use new zero-emission fuels after 2035 and develop cutting-edge combustion engine technology.
New UK Labour government sets climate and energy priorities
The recently installed UK Labour government’s climate and energy priorities include achieving 100% clean electricity by 2030 to reduce dependence on foreign fossil fuels, establishing Great British Energy to invest in clean technology, and pledging £6.6 billion to upgrade five million homes with energy-efficient features.
Labour also plans to reform the energy system to allow consumers to sell energy back to the grid and reduce standing charges. Job creation is emphasised, addressing concerns about job losses from ending new fossil fuel projects. Additionally, Labour aims to restore the UK’s leadership in international climate action, with efforts led by Ed Miliband at COP28.
EU and Serbia ink controversial critical minerals deal
The EU and Serbia signed a key battery materials deal on 19 July, following Serbia’s decision to resume Rio Tinto’s controversial lithium mining project. Attended by German Chancellor Olaf Scholz, Serbian President Aleksandar Vučić, and EU Vice-President Maroš Šefčovič, the summit highlights lithium’s importance for electric vehicle batteries.
Despite past protests over environmental concerns, Serbia’s constitutional court has cleared the project to proceed. Vučić promises environmental safeguards and aims to start lithium mining by 2028. This partnership strengthens Serbia’s economic growth and EU membership prospects, balancing green ambitions with environmental responsibility.
CSDDD officially published
It’s official: the Corporate Sustainability Due Diligence Directive (CSDDD) was published in the EU’s Official Journal on 5 July; the text will enter into force on 26 July. The CSDDD will create a framework obligating due diligence for companies operating in the EU.
Both EU-based and non-EU entities will be affected by the directive. Large companies exceeding 1000 employees or 450 million euros in turnover will be required to identify, assess, and mitigate adverse human rights and environmental impacts associated with their activities.
Business impact
Trans-European transport network (TEN-T)
On 28 June, the final legislative text of the Trans-European Transport Network Regulation (TEN-T) was published in the Official Journal of the EU. It entered into force on 18 July. This Regulation sets objectives for the development of a European transport network. By boosting green transport, TEN-T should contribute to the EU’s climate ambitions. How does its content affect your organisation? Let’s have a look.
What is in the package?
The TEN-T Regulation sets guidelines to develop a cohesive, efficient, and high-quality multimodal transport infrastructure throughout the EU Member States, by rail, inland waterways, short sea shipping routes, and roads that connect urban areas, ports, airports, and terminals. On the one hand, the purpose of the Regulation’s requirements is to increase the efficiency and reliability of current EU transport infrastructure, which is fundamental for European competitiveness and cohesion. On the other hand, the Regulation seeks to boost sustainable transportation, by ensuring network infrastructure reduces emissions and builds resilience against climate change.
To achieve this objective, the TEN-T Regulation is built on three categories of transport networks: the core network (which encompasses the most used transport networks and nodes), the extended core network and the comprehensive network (which connects all regions to the core network). Each transport network is bound by deadlines and objectives to be implemented by the Member States. The development of the core network should be ready by 2030, the extended core network by 2040 and the comprehensive network by 2050. For these networks, infrastructure requirements are put into place, for example regarding the minimum speed for train networks, for the depth of canals for navigation, or for available charging points for electric vehicles.
Completing the TEN-T requirements are nine European Transport Corridors, which are crucial rail freight corridors across the European Union. For each Corridor, the EU appointed a European Coordinator who oversees the progress of the corridor’s development.
Following the Russian invasion of Ukraine and in view of the EU’s increased focus on defence, the TEN-T Regulation also includes objectives to facilitate military mobility, intended as the movement of military personnel, assets and materiel across the EU. As such, TEN-T is assuring that its transport networks can fulfil a dual-use purpose, where civilian and military objectives are met simultaneously.
TEN-T is completed by complementing initiatives, including the Streamlining Directive which allows for easier administrative processes to permit cross-border infrastructure procedures, and funds like the CEF Transport programme for 2021-2027, which make €25.8 billion available for to fund TEN-T projects in the Member States.
How does this affect your organisation?
TEN-T will ensure that the necessary infrastructure is in place to ensure a smooth transition of the transport sector. For this, a variety of funds are available under the CEF Transport programme. For businesses, governments and infrastructure hubs (i.e. ports) along the network, TEN-T might lead to new requirements (such as infrastructure upgrades) but might also present an opportunity to apply for EU funding or have a say during the national implementation phase.
It is important for organisations to stay informed about the different deadlines and objectives the TEN-T Regulation sets for the different transport networks, to ensure its logistics and operations are adapted accordingly and the necessary investments in new technologies or infrastructure are made.
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What’s next?
Following her reconfirmation as President of the European Commission, Ursula von der Leyen is set to interview candidates for European Commissioner positions nominated by Member States throughout August. The Council will finalise a list of proposed Commissioners and submit it to the European Parliament by late August.
Hearings for the Commissioners-designate are anticipated for late September and October. If the Parliament votes positively on the entire College of Commissioners, the new European Commission could potentially take office by 1 November.
Martijn Meijer
Hi, my name is Martijn and I am curating the Energy & Climate Policy Update, aiming to bring you insightful updates straight from Brussels. At Publyon, I work mainly on transport and energy files. Do you have any questions on EU energy and climate policies or how these might impact your organisation? Feel free to reach out!
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