Welcome to the new edition of Publyon’s EU Energy and Climate Policy Update. In this weekly update, Publyon provides you with the latest insights on the ‘Fit for 55’ interinstitutional negotiations as well as updates on the energy transition, the energy crisis and the EU’s response, including other relevant news on the EU’s climate and emissions reduction policies.
As you may notice, our newsletter has undergone a slight makeover with a fresh new style. We hope you enjoy the updated look and feel as much as we do!
Revving up your business with TEN-T: the road to a green transport sector
The Trans-European Transport Network (TEN-T) is paving the way to a greener and more sustainable transport sector in the EU. Recently, the Parliamentary Committee on Transport and Tourism adopted its position on the revised Regulation on the guidelines on TEN-T. This makes it a perfect time to look into the benefits that this network can bring to your business.
What is TEN-T and what is the goal of the revision?
TEN-T is a comprehensive network of air, road, rail, and shipping infrastructure spanning the entire EU. The revision aims to make transport more environmentally friendly and increase the attractiveness of rail and inland waterways.
For example, a single European standard railway gauge on the network should make it easier for trains to cross borders. The completion of TEN-T will happen in three stages: a core network should be finished by 2030, an extended core network by 2040, and a comprehensive network by 2050.
What is the relevance of TEN-T for your organisation?
TEN-T is not only relevant to businesses operating in the rail and waterborne transport sectors. The revised regulation also sets requirements for other modes of transportation, such as road transport and aviation. Furthermore, the revision also emphasizes investments in walking and cycling infrastructure.
The revision also updates the TEN-T corridors and maps that are outlined online. This is significant because it affects which infrastructure projects may receive financial support from the EU. Being on the TEN-T network is important for businesses because it can enhance connectivity with other economic hubs, leading to improved market access and competitiveness.
- The European Parliament will vote on the report during the Plenary session in Strasbourg next week.
- The first Trilogue is scheduled for 24 April.
- The institutions aim to reach a deal before the end of 2023.
Energy policy updates
MACRON AND RUTTE TALK GREEN INVESTMENTS: French President Emmanuel Macron advocated for significant EU investments in line with the new Net Zero Industry Act during his state visit to the Netherlands. Macron is seeking liberal allies for his nuclear alliance aimed at making nuclear energy one of the central elements of EU’s policies.
During the visit, France and the Netherlands also announced that they would increase their cooperation in several other areas, such as semiconductors and energy supply. Speaking in The Hague, Macron emphasized the need for a “green industrial policy” at the EU level that involves greater self-sufficiency and collaboration with more partners.
EU ON THE LOOKOUT FOR LONG-TERM LNG SECURITY: The winter of 2023-2024 is fast approaching, and the EU has not yet managed to secure long-term LNG contracts. This is suggested by new data published by Reuters. Following the Russian invasion of Ukraine, the EU purchased large amounts of LNG on the spot market to secure energy supplies for winter 2022-2023.
Analysts estimate that the EU accounted for about a third of the global spot market trade in LNG in 2022, up from 13% in 2021. This could rise to 50% in 2023 if the EU does not sign long-term delivery deals. The EU will need to act fast. Member States have held talks with LNG contractors, but traders prefer 25-year terms, while Member States tend to prefer medium-term contracts of 10-15 years.
MACRON’S VISIT TO CHINA YIELDS CLOSER ENERGY TIES: During French President Emmanuel Macron’s state visit to China, France and China signed several cooperation deals on energy, notably in the fields of nuclear and wind energy.
The biggest news was the renewal of a long-lasting partnership between French Électricité de France (EDF) and China General Nuclear Power Group. A second deal was inked between EDF and China Energy Investment Corporation, this time focused on offshore wind energy.
EU energy crisis updates
G7 TACKLE LNG INVESTMENT: With the next G7 meeting coming up on 15 and 16 April, climate ministers in the group have tabled a draft communique on LNG.
The draft states that LNG and gas investments are crucial to bridge the gap towards net-zero. At the same time, climate commitments need to be followed. Furthermore, the draft communique stresses the need to accelerate gas demand reduction and energy savings. Issues such as a potential phaseout of domestic coal power generation remain unaddressed in the document.
STATE ACTOR SUSPECT IN NORD STREAM SABOTAGE: On 6 April, Swedish prosecutors stated that the main suspect for the sabotage of the Nord Stream 2 pipeline of September 2022 is a state actor. Investigation into the sabotage is still ongoing.
For the past months, there has been doubt over who conducted the sabotage, with some sources believing that non-state actors committed the sabotage. Investigators have now found explosives which indicate that the act was committed by a state actor – it is unlikely that a non-state actor has access to the number of explosives used in the sabotage.
Climate policy updates
EU TO REDUCE DEPENDENCY ON CHINA: During her visit to China, Commission President Ursula von der Leyen addressed the EU commitment to decrease its dependency on China.
Von der Leyen said the EU wants to rely less on China and reduce risks in its supply chain. To do that, the EU plans to work with more trade partners. She also welcomed the role that China has played in delivering international biodiversity agreements such as the Montreal-Kunming Global Diversity Framework and in reaching a deal on the High Seas Treaty.
As a call to action, von der Leyen asked Beijing to make concrete commitments in the run-up to the COP28 in Dubai at the end of 2023. She ended her speech by inviting China to prepare the COP28 in cooperation with the EU and to join the Global Methane Pledge.
- 17 April: Plenary vote on the Deforestation Regulation
- 17 April: European Parliament to formally approve the political agreement on the revision of the EU Emissions Trading System (EU ETS), Carbon Border Adjustment Mechanism, the Social Climate Fund and the EU ETS for aviation.
- 18 and 19 April: Informal Meeting of the EU Environment Ministers will be held in Sweden.
- 25 April: Next Trilogue meeting on ReFuelEU Aviation (co-legislators aim to strike a final agreement).
Net-Zero Industry Act: decarbonising the EU economy
The European Union has been at the forefront of tackling climate change and supporting investments in the green sector, thereby offering new market opportunities for businesses in the EU. The Net-Zero Industry Act (NZIA) published on 16 March 2023 is the EU’s latest addition to accelerating the pace of investments in the green sector. You can find out how the NZIA will affect your business in our article.READ ARTICLE
Not only interested in energy, but also looking for the latest insights into EU sustainability trends and policy developments?
Where can you run into our team?
During the EU CCUS policy: Net-Zero Industry Act & upcoming Commission’s Communication on Thursday 20 April, you might bump into our climate and energy experts, Nicolas and Sara.
Hi, my name is Sara and I am curating the Energy & Climate Policy Update to bring you, every week, the latest news on ‘Fit for 55’ as well as energy and climate insights. Do not hesitate to reach out should you have any questions or if you want to know how EU energy and climate policies might impact your business.Contact