Brussels, 22 December 2022
COUNCIL AGREES ON EMERGENCY MEASURES TO TACKLE SURGING ENERGY PRICES
EU countries adopted three key measures aiming to mitigate the energy crisis, by tackling high energy prices and reducing the EU’s energy dependence on Russia. The first measure is the market correction mechanism, which seeks to protect against excessively high prices, by setting a price cap on gas contracts. The second measure intends to establish a new gas price benchmark, as well as coordinate joint gas purchasing, and thus secure supply and maintain stable prices. Lastly, the third measure aims to fast-track and simplify the permitting process for renewable energy projects to encourage their adoption into the energy mix.
EU COUNTRIES ADOPTS POSITION ON KEY FINANCIAL SERVICES LEGISLATIONS
The Council adopted its general approach towards three legislative proposals for financial services. First, the review of the Markets in Financial Instruments Regulation (MiFIR) and the Markets in Financial Instruments Directive (MiFID II), which aims to strengthen market transparency by means of a consolidated tape. Second, the Central Securities Depositories Regulation (CSDR), aiming to make EU securities settlement more efficient. And lastly, the Insurance Recovery and Resolution Directive (IRRD), aiming to make the insurance and reinsurance sector more resilient and enhance protection. The Council now awaits the European Parliament to reach its respective positions to proceed to trilogues.
GREEN DEAL: EMISSIONS TRADING SYSTEM AND SOCIAL CLIMATE FUND AGREEMENT
The Council and the European Parliament reached a provisional political agreement on two legislative proposals of the ‘’Fit for 55” package. First, the co-legislators agreed on the EU Emissions Trading System, which uses a market-based approach to reduce carbon emissions via the cap-and-trade of emission allowances for energy-intensive industries and the power generation sector. Concretely, the agreement increases the annual emissions reduction rate of the system, aiming for a 62% reduction in emissions by 2030. The second proposal establishes a Social Climate Fund to help the most vulnerable to cope with the impact of the Emissions Trading System.
WORLD LEADERS REACH AGREEMENT TO PROTECT GLOBAL BIODIVERISTY
The EU joined 195 countries in signing the Kunming-Montreal Global Biodiversity Framework during the UN Biodiversity Conference COP15, aiming to protect and restore nature and insure its sustainable use. The agreement is a framework with measurable goals and targets, as well as complete monitoring, reporting, and review arrangements to track progress, and is complemented by a resource mobilisation package. Some of the key global targets are the restoration of 30% degraded ecosystems, a stop to the extinction of known species, a reduction of pesticides risk by 50%, a reduction of pollution risks, and sustainable management of areas and resources.
EU INSTITUTIONS SET THEIR PRIORITIES UNTIL END OF LEGISLATIVE TERM
The European Parliament, the Council and the European Commission released a joint declaration on the EU legislative priorities for 2023 and 2024. The three institutions outlined the main priorities for 2023 and until the end of the current legislative term in 2024. Focus will be on the delivery of the European Green Deal, achievement of the digital transformation and improvement of EU’s resilience, the development of an economy that works for people, strengthening Europe’s role in the world, the promotion of the European way of life, and the protection of democracy and European values.
WE WISH YOU A MERRY CHRISTMAS AND A HAPPY NEW YEAR!
THE EU INSIGHT WILL BE BACK IN JANUARY 2023.
Karl Isaksson, Managing Partner Brussels, Kreab