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Energy, environment & transport pro brief |
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October 8, 2024| Read online
Estimated reading time: 4-5 minutes |
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Czech nuclear deal: EDF asks Commission to open foreign subsidies investigation |
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EDF has requested the European Commission to review Czechia's decision to award a nuclear reactor contract to a South Korean supplier, the European executive confirmed to Euractiv yesterday.
In May, the Czech majority state-owned utility CEZ announced it was entering into exclusive negotiations with the nuclear reactor manufacturer KHNP, a subsidiary of the South Korean giant KEPCO, to build two nuclear reactors at Dukovany.
The decision left competing bidders, French state-owned utility EDF and US company Westinghouse, on the sidelines.
When asked by Euractiv whether the Commission had received a complaint from EDF against Czechia about the foreign subsidies regulation (FSR) in the case of the Dukovany nuclear tender, a Commission spokesperson confirmed that it had "received a letter from EDF on this subject."
EDF's complaint to the Commission has now opened up a new legal channel, the EU Foreign Subsidies Regulation. Adopted in 2023, the regulation allows Brussels to probe companies bidding in public tenders in the Union worth over €250 million.
Paul Messad provides the background to EDF’s complaint, and explains more about the foreign subsidies regulation. |
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Regulators unhappy with grid operator development plans |
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Last week the EU's Agency for the Cooperation of Energy Regulators (ACER) evaluated the latest ten-year network development plan of the European electricity and gas network operators (ENTSO-E and ENTSOG).
ACER found that, unless the network plans are changed substantially, Europe's power grids will be unable to support the electrification of the economy.
According to the agency, the main problems stem from insufficient planning for expected high levels of more renewable energy; a ‘non-recognition’ of trends in intermittent energy storage capacity; and poor commitment from stakeholders leading to a lack of transparency.
The EU’s Scientific Advisory Council on Climate Change also published a negative opinion on grid operators’ plans in June. The Council stated that the operator’s planning scenarios "could expose the EU to the risk of exceeding its share of the global greenhouse gas budget due to excessive emissions from the energy sector".
In his landmark report on competitiveness in September, Mario Draghi singled out ENTSO-E as an example where “private bodies with commercial interests” are undertaking “tasks and responsibilities of a regulatory nature.”
Juliet Phillips, Energy Campaigner for NGO Beyond Fossil Fuel called ACER’s report "a wake up call for national energy regulators” and said they must “push grid system operators to update their plans to make them compatible with a renewables-based power system by 2035." [NC] |
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Turnover of German car industry drops 4.7% in first half of 2024 |
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The latest figures from Germany’s statistics office show that German carmakers' domestic turnover is down to €80 billion, while sales from abroad come in at €189 billion. |
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German government, carmakers kick off autonomous driving project |
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Key players in Germany’s car industry want to use AI and autonomous driving to strengthen their international market position.
In a Berlin press conference and discussion panel yesterday, German minister for economic affairs and climate action Robert Habeck, the general manager of the German carmakers association VDA and the chief technology officers of Mercedes-Benz, Continental Automotive and Bosch Mobility presented a ministry-funded project called “nxtAIM”.
Its goal is to use generative AI methods for testing, training and error detection during the development of autonomous vehicles.
The necessary computing power to process the data shared among the partners is being provided by national research institution Forschungszentrum Jülich.
Habeck and the collaborating car manufacturers endorsed the project as a leap forward after years of the industry being, as the minister acknowledged, “not always as ambitious as we should have been”.
The national-level project could serve as a model for future joint efforts among EU members, given that currently car manufacturers have to apply for licenses of autonomous driving in each member country separately, as Mercedes-Benz CTO Markus Schäfer pointed out. [JS] |
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Ireland pushes for greening corporate fleets |
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Yesterday the Irish Government sent a letter to Commission President Ursula Von der Leyen, asking for action on the Greening Corporate Fleets initiative. The letter was also signed by the Belgian, Austrian and Dutch environment and mobility ministries.
Back in 2022 the Commission announced an initiative to promote the uptake of zero-emission vehicles in corporate fleets, and ran a public consultation ran between February and July 2024.
The letter points out that corporate fleets “are the EU's most important market segment” and that greening these vehicles “offers great potential to strengthen the EU's industrial competitiveness.”
According to a report by NGO Transport & Environment, company fleets constitute the biggest source of emissions produced by new cars, since they drive twice as many kilometers as private cars, and have twice as many large SUVs.
Both the report and the government’s letter say that corporate fleets are lagging in the shift to electric vehicles, compared to cars owned by private individuals.
In their call for action, the four Member States ask the Commission to "commit (…) to a legislative initiative on Greening Corporate Fleets, to be presented before the end of 2025." [BM] |
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Parliament to push Ribera on ‘just transition’ part of her job |
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Alongside the committees for industry, economy and environment, the Parliament’s regional development (REGI) committee will also get to pose some questions during Teresa Ribera’s audition next month.
According to a document seen by Euractiv, the REGI committee has already finalised its written question for the incoming executive vice-president for a clean, just and competitive transition.
REGI wants to know what Ribera will do with the EU’s Just Transition Fund. The Committee describes the instrument as “a key achievement” of EU’s previous cycle, but blames red tape for stopping the fund’s resources from reaching “thousands of workers from carbon-intensive industries.”
REGI has a host of sub-questions for Ribera, including whether she will create a successor fund, whether she will secure more resources for the just transition, and whether she is prepared to simplify the rules to secure funds.
Ribera is obliged to provide a written answer, before her hearing in front of the Parliament, due in early November.
REGI’s question comes as regional leaders this week push for the new Commission to ‘walk the talk’ on cohesion policy. [DC] |
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New transport committee ready to talk |
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Yesterday evening the Parliament’s transport committee voted to enter into negotiations with the Council on several files.
The previous parliament’s transport committee already agreed a position on update rules for driving licence; pan European driving disqualification; maximum weights and dimensions for trucks; railway capacity allocation; and maritime safety.
Yesterday’s vote means that the committee will not reopen these agreements.
MEPs may still need to be patient however. On most files national governments have yet to agree their own compromise position in Council. [DC] |
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Council’s energy working group meets this morning |
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Keep ETS revenues for climate action, interest groups argue |
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With the EU gearing up for a fight over money, a coalition of lobby groups, including Norway’s Bellona and Transport & Environment, is making the case for further ringfencing ETS revenues for climate action.
ETS revenues are currently at €30 billion per year and are expected to rise in the medium-term.
“All ETS revenues must be allocated to climate action-related measures,” their joint letter reads. After earmarking, spending should be assessed on the basis of efficiency and climate efficacy.
The 2023 reform of the ETS already put in place a ringfencing for climate action. But EU countries can spend up to 25% on supporting industries hit by higher electricity prices.
That money should instead go towards scaling clean-tech solutions, the groups urge, while also calling for greater transparency in reporting ETS revenue allocation. [NK] |
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Push for first ‘state of nature’ standardised metrics |
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Overnight in Sydney Australia, a coalition of 27 sustainable development organisations launched a consultation to agree a new set of standardised ‘state of nature’ indicators. The initiative is led by the Nature Positive Initiative (NPI), which is a project of Rockefeller Philanthropy Advisors.
Their aim is transform the way businesses, financial institutions and others measure and report on positive outcomes for nature.
The proposed "State of Nature metrics" are built around four core indicators relating to the extent of ecosystems; their condition; landscape integrity; and the risk of species extinction.
According to the participating organisations, this will be the first universal approach to measuring the state of nature.
In a press release Marco Lambertini, convener at the Nature Positive Initiative, said that “the rapid decline of nature threatens global economic stability and human well-being, but there is no common approach to measuring nature's decline or recovery.”
The final version of the ‘State of Nature Metrics’, due to be published in January 2025, will provide a standardised and comparable way of measuring progress towards the global goal of halting and reversing biodiversity loss by 2030, as agreed in the UN Kunming and Montreal Global Biodiversity Framework. [NC] |
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Today’s brief was brought to you by Euractiv’s Energy, environment & transport team |
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Today’s briefing was prepared by the Energy & environment team; Donagh Cagney, Nathan Canas, Paul Messad, Nikolaus J.Kurmayer and Bárbara Machado, but not with the keen eyes of any proofreaders. Share your feedback or information with us at [email protected]. |
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