EU Insight, 27 October 2023

Brussels, 27 October 2023

EU LEADERS MEET IN BRUSSELS

During the European Council meeting, heads of states and governments discussed the on-going challenges and risks facing the European Union. The leaders discussed the conflict in Ukraine and reaffirmed their financial support for its security and defense. However, the key topic of discussion was the conflict in the Middle East, where the leaders called for efforts to avoid regional escalation and an aim to foster engagement among all sides. They also called for the revival of a political solution, based on the two-state approach, while encouraging holding an international peace conference. Finally, EU leaders unanimously supported the reduction of reporting and administrative burden to boost EU competitiveness.

COMMISSION AIMS TO BOOST EUROPEAN WIND POWER INDUSTRY

The Commission published two initiatives aiming to help the European wind sector address challenges hampering the pace of deployment of both on- and offshore wind power capacity across the EU. First, the Commission’s Wind Power Action Plan aims to improve the competitiveness of the EU’s wind sector and ensure that it plays an important role in the ongoing green transition. As such, the plan suggests accelerating permitting procedures and facilitating access to finance wind power projects. Second, the Commission’s offshore wind strategy complements the action plan by introducing a set of specific actions to address the sector’s challenges.

PARLIAMENT POSITION ON NET ZERO INDUSTRY ACT

The Parliament’s Industry and Energy Committee reached an agreement on the Net Zero Industry Act. The initiative was launched by the Commission in March this year, as part of the EU’s response to the US Inflation Reduction Act. The proposed legislation aims to ensure that the EU’s manufacturing capabilities for net-zero technologies remain competitive at international level by encouraging subsidies and financing towards the manufacturing and deployment of a set of technologies deemed as “strategic”. Notably, the Parliament’s position expands said list to include nuclear fission and fusion technologies. The agreement in Parliament puts pressure on the Council to finalise its position, to pave the way for negotiations.

STATE OF THE ENERGY UNION REPORT SHOWS POSITIVE DEVELOPMENTS

The Commission published its 2023 State of the Energy Union Report, taking stock of the legislation and initiatives adopted since 2019 in the framework of the Green Deal while assessing future challenges for the EU’s energy security. Overall, the report shows that the EU has made significant progress towards diversifying its energy supply away from fossil fuels, following Russia’s invasion of Ukraine. Nonetheless, the report underlines potential future challenges, including in relation to European competitiveness, securing the independence of supply chains, reinforcing the electricity grid, and fossil fuels phase out. The report also underlines the importance of an updated governance of the energy union and the upcoming 2040 targets.

HYDROGEN AND RENEWABLES IN FOUCS OF GLOBAL GATEWAY FORUM

The Commission organized its yearly Global Gateway Forum, bringing together a wide range of stakeholders and leading policymakers, to discuss the international collaboration in light of global challenges and the promotion of sustainable development. A €300 billion initiative, the EU’s Global Gateway aims to offer investment opportunities to countries, to foster the development of infrastructure projects worldwide, and thus serves as an alternative to financing from other global actors. Discussions mainly focused on green projects such as clean technology and renewable energy investments. Focus was put on clean hydrogen as a potential export and energy source. Digital infrastructure and critical raw materials were further topics of interest.

COMING UP NEXT WEEK

• 31 October: Informal meeting of tourism ministers. On the agenda: The road to social sustainability of tourism in the EU

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.