11/12/2023
Brussels, 8 December 2023
PLEDGES ON METHANE REDUCTION AND RENEWABLES DEPLOYMENT AT COP28
The first week of the Conference of Parties, COP28, concluded in Dubai resulting in multiple global pledges being cemented. The EU spearheaded the Global Methane Pledge, which aims to reduce emissions by at least 30% by 2030. EU leaders also played an important role in the endorsement of the Global Renewables and Energy Efficiency Pledge. The agreement aims to triple global renewable power generation capacity and thus foster the decline of fossil fuel use. In the remaining days of COP28, participating nations will aim to reach an agreement on the way forward following the first ever global stocktake, with the phase out of fossil fuels likely to be a major stumbling block during the negotiations.
EU AND CHINA TALK TRADE AND A WAY FORWARD IN INTERNATIONAL RELATIONS
During the 2nd EU-China Summit, Commission President Ursula von der Leyen and Council President Charles Michel met with Chinese President Xi Jing Pi and Chinese Premier Li Keqiang to discuss the relations between the world’s second and third largest economies. Considering ongoing geopolitical tensions in the Middle East and Ukraine, as well as the EU’s seemingly protectionary trade policy vis a vis China, the EU’s objective for the Summit was to establish a constructive and stable relation with China. Although it appears the Summit delivered little immediate results, the meeting underlines the importance of the EU and China being able to have frank and open discussions about their concerns and future expectations.
FINANCE MINISTERS APPOINT NEW HEAD OF EIB
EU Finance Ministers met this week under the Eurogroup and Economic and Financial Affairs Council formations. Notably, the meetings served to appoint Nadia Calviño as the new president of the European Investment Bank, putting an end to a high-profile race for the job which saw her face off against Commissioner for Competition Margarethe Vestager. In addition, during the meeting, Finance Ministers discussed but fell short of an agreement on the Economic Governance Review, a new framework aiming to modernize the EU’s economic policy. Lastly, Ministers endorsed euro area Member States’ draft budgetary plans and debated the future of the EU’s Capital Markets Union.
COUNCIL AND PARLIAMENT AGREE TO IMPROVE ENERGY PERFORMANCE OF BUILDINGS
The co-legislators reached an agreement on the Energy Performance of Buildings Directive. In line with the Fit for 55 Package, the Directive aims to reduce the impact of the construction sector and buildings on the environment and climate change, by improving the energy efficiency of existing buildings and setting guidelines for future constructions. Notably, the Directive sets emission reduction targets for buildings and aims to phase out the use of fossil fuels in new and renovated buildings. Additionally, the initiative mandates Member States to renovate the 16% worst-preforming non-residential buildings and sets a 16% energy reduction target for residential buildings by 2030.
AGREEMENT TO PROMOTE SUSTAINABLY DESIGNED PRODUCTS
The Council and Parliament reached an agreement on the Ecodesign Regulation which establishes a framework determining new design requirements for sustainable products. Affecting a wide range of consumer products, excluding motor vehicles, the Regulation aims to harmonise requirements to ensure products’ energy efficiency while ensuring that consumer products are easier to maintain. Notably, the agreed initiative also includes a direct ban on the destruction of footwear and textiles, while imposing financial penalties on companies failing to comply. Lastly, the initiative establishes a “Digital Product Passport”, aiming to increase the visibility of sustainable products across the Union.
COMING UP NEXT WEEK
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.
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