EU Insight, 23 February 2024

Brussels, 23 February 2024

AGREEMENT ON FIRST EU CARBON REMOVAL CERTIFICATION

The Council and European Parliament agreed on the establishment of the EU’s inaugural certification scheme for carbon removals. The framework will encompass certifications for carbon removals, carbon farming, and carbon storage in products, and ensure these are transparent and trustworthy. As such, the initiative aims to support the development and deployment of high-quality carbon removal and soil emission reduction activities within the EU while reducing the risk of related greenwashing. Overall, while remaining voluntary of use, the framework aligns with the broader EU’s climate goals, as well as the Commission’s ambitions to enhance the role of carbon removals on the road to de-carbonization.

COUNCIL AND PARLIAMENT STRENGTHEN EU AIR QUALITY STANDARDS

Co-legislators reached a political agreement on the revision of the EU’s air quality standards. It aims to bolster air quality in the Union, and to achieve a zero-pollution objective by 2050. Concretely, the deal strengthens the air quality standards for 2030, addressing various air pollutants and requires Member States to establish air quality roadmaps and action plans where limits are exceeded. The agreement aligns EU standards with World Health Organization recommendations. Lastly, the agreement calls on the Commission to regularly review the standards based on scientific evidence and includes provisions to ensure access to justice and compensation for those affected by air pollution violations.

COMMISSION PRESENTS DIGITAL CONNECTIVITY INFRASTRUCTURE PACKAGE

The European Commission presented its digital infrastructures package. Overall, the package presents related recommendations and aims to initiate a dialogue with Member States and stakeholders to explore the need for future EU policy measures to support the development of the Union’s digital infrastructures. Concretely, the package assesses the challenges which the EU is currently confronted with in relation to the rollout of connectivity network technologies, such as 5G and the fiber network. Additionally, it presents a set of recommendations to attract investment, foster innovation, and increase the security and resilience of infrastructure, all of which should contribute towards achieving a true Digital Single Market.

FRANKFURT SELECTED AS ANTI MONEY LAUNDERING AUTHORITTY HOST

The Council and European Parliament selected Frankfurt as the host city for the soon to be established Anti Money Laundering Authority (AMLA). The selection caps off more than two years of negotiations on the revision to the EU’s anti-money laundering framework whose implementation and enforcement the new authority will oversee supervising as of 2025. Frankfurt emerged as victorious from the selection process after nine other cities had thrown their hat in the ring, including Madrid, Rome, and Paris. AMLA’s selection process was of particular relevance, as it was the first time in EU history that the European Parliament had a say in the destination of an EU agency.

KEY FINANCIAL LEGISLATIONS CLOSER TO FINALISATION

The European Parliament and the Council made progress in the finalisation of key initiatives in the financial services sector. On its side, the Parliament endorsed the trilogue agreements on the ESG Ratings regulation and the Listing Package. While the former initiative aims to boost investor trust in sustainable products the latter aims to facilitate access for small and medium sized companies to the EU’s capital markets. In parallel, the Council formally endorsed the final agreement on the review of the Markets in Financial Instruments Regulation (MiFIR). Said initiative aims to enhance access to market data for investors, while addressing investor protection concerns through a new ban on a practice known as payment for order flow.

COMING UP NEXT WEEK

• 25-29 February: Foreign Affairs Council (Trade). On the agenda: approval of a first set of conclusions at the start of the 13th Ministerial Conference of WTO
• 26 February: Agriculture and Fisheries Council. On the Agenda: Structural responses to the current crisis that the agricultural sector is facing.
• 26 – 27 February: Informal meeting of gender equality ministers. On the agenda: Lessons learned of the current European gender equality mandate and the progress.
• 26 – 29 February: European Parliament Plenary Session in Strasbourg. On the agenda: European security and defense, EU budget, Platform workers directive
• 26 – 29 February: WTO 13th Ministerial Conference. On the agenda: Review the functioning of the multilateral trading system and action on future work.
• 27 February: College of Commissioners. On the agenda: Advanced materials for industrial leadership
• 29 February – 1 March: Informal meeting of education ministers. On the agenda: Young people and the European elections

Karl Isaksson, Managing Partner Brussels, Kreab

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Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.com • www.kreab.com/brussels • Twitter: @KreabEU.