Dear Reader,
Welcome to Publyon’s monthly Sustainability Newsletter! In this edition, we’re diving deep into Mario Draghi’s much-anticipated Report on the Future of EU Competitiveness, which is set to shape Europe’s economic landscape over the next five years. With its focus on bolstering the EU’s global leadership in climate neutrality, resource independence, and cutting red tape, this report is not just a vision for the future – it’s a roadmap for businesses navigating an increasingly complex geopolitical environment.
We’ll also explore the new European Commission mandate letters and what key policy priorities mean for you. Expect insights on sustainability, circular economy, and critical regulations that will define the future of European competitiveness. Grab a coffee, and let’s dive into the green agenda that will shape Europe’s future.
The spotlight
Unpacking the Draghi Report: what are the key actions for the EU in the next 5 years
In September, the European institutions held their breath as former European Central Bank chief Mario Draghi presented his long-awaited Report of the Future of the EU Competitiveness, outlining a vision for Europe’s economic future and its role in the international arena against economic superpowers such as the US and China. Draghi outlined several major transformations that Europe must address to remain competitive, including maintaining the EU’s global leadership on green policies and reaching climate neutrality while boosting competitiveness.
But why is this report so important? What role does this report play in Brussels’s politics?
Released at the start of the new mandate 2024-2029, Draghi’s report is expected to guide the work of the next European Commission in terms of priorities and policies, as it has been also included in the mission letter of all the Commissioners-designate (see below). For businesses, the report offers valuable insights on how they can adjust their strategies in response to the shifting geopolitical landscape, providing a strategic roadmap for securing their supply chain in current uncertain times.
The key actions that Draghi recommends for the EU to take in order to achieve global leadership in terms of climate neutrality and competitiveness are:
- The EU should cut red tape. Draghi implies that strict environmental protection rules may be a necessary trade-off to achieve these objectives: for instance, EU legislations such as the Corporate Sustainability Due Diligence and the Corporate Sustainability Reporting Directive place significant regulatory burdens on industries and particularly SMEs due to overlapping horizontal and sector-specific requirements.
- To overcome its resource dependence on critical minerals, the EU must implement the Critical Raw Materials Act (CRMA) and complement it with a comprehensive strategy covering all stages of the CRM supply chain.
- The EU should harness the potential of domestic natural resources and critical minerals. This can be done: (I) by accelerating the pace of permitting for mining in Europe; (II) through the establishment of a true Single Market for waste and circularity; (III) by pursuing a coordinated and common strategy to boost domestic production capacity and innovation and protect key network infrastructure.
- The EU should enforce existing circularity and recyclability legislation, such as the Waste Shipment Regulation and the Waste Framework Directive, to enhance Europe’s recycling capacity.
Policy update
What are your European Commissioners planning for you in the next term? Summary of Mandate Letter
In this edition of our sustainability newsletter, we’re diving into the recently published mission letters from the European Commissioners, which outline the key policy priorities for the upcoming mandate, particularly focusing on the environment and climate. These documents give us a clear sense of what’s ahead for Europe’s green agenda.
So, grab a coffee, sit back, and let’s explore what’s on the horizon for environmental and climate policy in the EU!
- Teresa Ribera, Executive Vice-President-designate for Clean, Just, and Competitive Transition, will spearhead the implementation of European competition policy while advancing a circular and low-carbon economy, aligned with the recent Draghi Report on the Future of European Competitiveness. Key initiatives, including the Clean Industrial Deal and the European Competitiveness Fund, alongside the modernisation of the State Aid Framework, will aim to boost investment, foster lead markets for clean technology, and create a supportive environment for business growth and competition.
- Stéphane Séjourné, the Executive Vice-President-designate for Prosperity and Industrial Strategy, will work alongside Ribera to enhance Europe’s competitiveness, supporting the implementation of the Clean Industrial Deal while accelerating and streamlining the Single Market. A key priority for him will be establishing a dedicated Critical Raw Materials Platform and ensuring the successful implementation of the Critical Raw Materials Act.
- Olivér Várhelyi, the European Commissioner-designate for Health and Animal Welfare, will play a key role in completing the European Health Union. His responsibilities will focus on crucial areas such as preventing and reducing food waste, as well as ensuring and enforcing high food safety standards. This will be important for subjects such as the Waste Framework Directive (WFD) and the Food Contact Materials (FCM) Regulation.
- Wopke Hoekstra, the European Commissioner-designate for Climate, Net Zero, and Clean Growth, returns for a new term after succeeding former Executive Vice-President Frans Timmermans. Hoekstra will continue advancing Europe’s climate agenda, focusing on implementing existing climate legislation and embedding the 90% emission reduction target by 2040 into European law. His priorities include maintaining European competitiveness, supporting Ribera and Séjourné with the Clean Industrial Deal, scaling down fossil fuel subsidies, and building a European Net Zero infrastructure.
- Jessika Roswall, the European Commissioner-designate for Environment, Water Resilience, and a Competitive Circular Economy, will oversee some of the most crucial sustainability files, so keep a close watch! She will continue the Green Deal’s efforts while ensuring European competitiveness by introducing a Circular Economy Act to foster a market for secondary materials and create a single market for waste and sustainable products. Additionally, Roswall will propose a chemical industry package aimed at simplifying REACH regulations and clarifying rules on PFAS.
That’s a lot to absorb, isn’t it? Don’t worry – Publyon will keep you updated on all the key developments through the sustainability newsletter!
Blog
EU Green Claims Directive: its impact on business operations
The EU Green Claims Directive will significantly influence how your organization markets its environmental claims. Explore what green claims are, the European Commission’s proposal to regulate them, and the potential impact on businesses.
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Eliza Druta
Hi, my name is Eliza and I am curating this newsletter to bring Brussels’ main sustainability insights to your inbox, every month. Do not hesitate to reach out should you need more information on the newsletter’s content or if you have suggestions for our next editions.
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