“The European Green Deal (or more precisely, the Green Deal) remains Europe's firm response to climate change” – this was the key message from European Commission President Ursula von der Leyen in her State of the Union address in September. In implementing the initiative launched in December 2019, which aims to achieve climate neutrality by 2050, a vast amount of legislative work has been completed in Brussels. While Green Deal documents related to energy are being finalised, work continues on legislative proposals concerning biodiversity and the role of nature in reducing greenhouse gas emissions. These issues have proven politically contentious as they affect the critical and sensitive agricultural sector. In order to prepare the necessary documents before the next European Parliament elections in June 2024, Brussels has found itself in a severe time crunch, as it is simultaneously preparing for the upcoming COP28 conference in Dubai.
Upcoming events in the weeks ahead
COP28 will take place in Dubai, UAE, from 30 November to 12 December 2023
The UN Climate Change Conference (COP) of the Parties to the UN Framework Convention on Climate Change (UNFCCC) is an international climate summit held annually, unless the participating countries decide otherwise. At COP meetings, world leaders gather to work together on solutions to the problem of climate change. Currently, the COP has 198 members (197 countries and the European Union).
European Commissioner for Climate Action Wopke Hoekstra is prepared to announce a significant financial contribution from the European Union and its member states to the “Loss and Damage Fund” established within the framework of the Climate Change Convention (COP28) in the United Arab Emirates. This was reported in a joint statement following W. Hoekstra's meeting in Brussels with COP28 President Sultan al Jaber. The statement was published on 13 November. In it, Wopke Hoekstra and Sultan al Jaber expressed satisfaction with the “very positive result” reached in Abu Dhabi on 4 November, which is a prerequisite for the establishment of the fund. This is scheduled to be approved at COP28 and will be accompanied by an agreement on “early financial pledges.” The statement was released after EU environment and climate ministers unanimously approved the negotiating mandate for COP28 on 16 October. The ministers are calling for the gradual phase-out of fossil fuels, as well as reaching a consumption “peak” by 2030. There is a stated desire to prevent the construction of new coal-fired power plants by 2030 and efforts to end fossil fuel subsidies as soon as possible.
Reducing carbon dioxide emissions
The European Parliament adopted its position on the European Commission's legislative proposal to introduce voluntary certification for carbon removal projects. Negotiations between the European Parliament, the EU Council (representing all 27 member states), and the European Commission could therefore begin soon. The purpose of the discussed legislation is to provide a way to quantify and verify measures for removing CO₂ from the atmosphere. This issue has been sharply criticised by environmental NGOs. They believe the regulation “risks undermining real climate action in the EU” and that the Parliament has failed to implement safeguards.
Nature Restoration Law
Parliament and the EU Council reached an agreement on the highly controversial Nature Restoration Law on 9 November. However, the agreement does not mean the end of the fierce political battle that began in the spring of 2023. The European Parliament's influential Environment Committee (ENVI) must vote on this agreement on 29 November, while the plenary sessions of the EU Council and the European Parliament will take place from January to February of next year. It remains unclear whether the legislation will be supported by a majority in each of the three expected votes. There is no certainty about the outcome. The Nature Restoration Law allows the EU to meet its international obligations regarding biodiversity and climate protection.
Latest information on EU policy-making – a summary of the past month
Methane
Two weeks before COP28, the EU Council and the European Parliament reached an agreement on legislation to reduce methane emissions in the energy sector. Parliament managed to reach a common position on a key issue: the legislation includes a clause on methane emissions occurring throughout the entire fossil fuel import supply chain. The goal is to close the European market (noting it is the largest in the world) to fossil fuel producers if they do not curb their methane emissions. Over 100 years, methane has impacted global warming 28 times more than CO₂, while over 20 years, methane has warmed the planet 82 times more. During COP26 in Glasgow, the EU launched an initiative on the “Global Methane Pledge.”
Environmental and climate criminal law
The EU Council and the European Parliament agreed on 16 November on a proposal for a directive (an EU objective) on the protection of the environment and climate through criminal law. The text more precisely defines environmental crimes and adds new types of criminal offences – for example, the illegal production, placing on the market, import, export, use, or distribution of fluorinated greenhouse gases. The proposal harmonises the level of penalties for natural persons and, for the first time, for legal persons across all EU member states.
European Central Bank
Frank Elderson, Vice-Chair of the Supervisory Board of the European Central Bank, announced on 14 November potential sanctions for banks that fail to comply with the compliance rules set for them to properly take into account environmental and climate-related risks. If banks do not fulfil their obligations, the adopted binding supervisory decisions provide for the possibility of imposing very large fines on banks.
Critical Raw Materials Act
The EU Council and the European Parliament reached an agreement on 13 November on a proposal for a regulation (a binding legislative act) that establishes a framework to ensure a secure and sustainable supply of critical raw materials. This is better known as the “Critical Raw Materials Act.” The legislation stipulates that 25% of these materials consumed in the EU must be sourced from material recycling by the end of the decade. Companies exposed to significant risks will have to conduct a supply chain risk assessment regarding the supply of strategic raw materials.
Nature Restoration Law
EU legislators reached an agreement on the highly controversial Nature Restoration Law on 9 November. The text differs significantly from the proposal submitted by the European Commission in June 2022. As expected, negotiations on Article 9 (Agricultural ecosystems) were particularly difficult, especially regarding point 4, which concerns peatlands. Following pressure from the conservative European People's Party (EPP) political group, the European Parliament had completely deleted this article. The agreement again includes targets for the restoration of drained peatlands. To achieve CO₂ reduction goals, it is emphasised that restoring drained peatlands is crucial.
Media updates on the topic:
Euractiv energy and climate journalist Kira Taylor published an interview from Brussels with Spanish Deputy Prime Minister Teresa Ribera, who will represent EU member states at COP28. T. Ribera explained that COP28 must commit to reaching a peak in emissions and halting the construction of new coal power plants.
Politico environmental journalist from Brussels, Louise Guillot, wrote about how Brussels' proposal to make packaging more sustainable has triggered an intense lobbying battle.
Le Monde journalist Mathieu Goar (Matthieu Goar) explains how the French capital is preparing for increasingly frequent heatwaves: Paris is organising crisis drills to be prepared for the +50 °C heat that could be expected next year.
Interesting events are coming up soon – Sustainable Solar Europe on 7 December, dedicated to sustainability in the solar power plant sector, and The ESG-Day on 1 December, which will examine new European regulations on ESG “Environmental, Social, and Governance” requirements. It will feature plenary sessions on the new business model, new risks, and opportunities, with particular attention to new European directives and standards (European Sustainability Reporting Standards).
COP28 Overview
Video: What is Europe's place and role at COP28?
https://www.arte.tv/en/videos/112907-046-A/arte-europe-weekly/