Energy, Environment & Transport Pro Brief |
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Fri 18 October 2024 | View online
Estimated reading time: 4-5 minutes |
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Good morning , And welcome toFriday 18 October’s daily Energy, Environment and Transport Pro Brief.
This morning we dig into the Dan Jørgensen’s prep notes for his Parliament hearing.
Meanwhile it looks like aviation and maritime will hang onto their tax exemptions.
And if you are feeling 1.2% more satisfied with your life this morning, you may want to check your local airport departure board.
Here are our other top stories for the day:
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New Energy Commissioner briefed to defend ETS, power to Ukraine |
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Far-right MEPs knocking on the door of EP’s informal nuclear group |
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French liberal MEP Christophe Grudler established the 'Nuclear Energy Focus Group' in 2021, and since then the group has grown to includes over 120 pro-nuclear MEPs from the S&D, EPP, Renew, and ECR groups.
But Grudler may become the victim of his own success.
MEPs of the French far-right party Rassemblement National wrote to him on Tuesday, asking to be allowed join the group.
Paul Messad breaks down what it means for Grudler, who must now navigate a delicate political balancing act. |
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Airports pitch competitiveness, social impacts under Letta’s approving eye |
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The aviation sector has had a tough time in recent years, as it grappled with a debilitating COVID-19 crisis and the rise of climate concerns on the political agenda.
Yesterday evening European airport association ACI EUROPE attempted to regain the initiative, with the launch of a new report on the benefits of air connectivity.
Enrico Letta, until now more vocal about his high regard for rail, gave a keynote address.
In a break from many recent policy publications, the report goes beyond competitiveness, and explores the social benefits of aviation.
Aviation players have long spoken of the link between air connectivity and economic growth. This report repeats the trick, but it also considers Sustainable Development Goals.
According to the analysis a 10% increase in air connectivity correlates with a 9% increase in quality education, a 19% boost in gender equality and a 14% reduction in poverty.
Finally, a 10% boost in direct connections is associated with a 1.2% improvement in life satisfaction. [DC] |
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Maritime, aviation to remain exempt from fuel tax - leak |
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Ahead of next week’s Council Working Party discussions, Euractiv obtained a fresh compromise text of the Energy Taxation Directive (ETD), which is under revision.
The document was authored by the Hungarian Presidency, and concludes that “some delegations are not in a position to accept the abolition of the mandatory tax exemptions” that currently apply to aviation and maritime.
Council decisions on taxation require unanimity. The Hungarian’s acceptance that some countries cannot be convinced is therefore significant.
“In the light of this, and for the sake of compromise, the Presidency has now proposed that the currently applicable mandatory exemptions will be maintained in these fields” the compromise text continues.
This document will be the basis for 23 October discussions, in the Council’s Working Party on Tax Questions.
The Presidency also wants the file to be discussed at the December meeting of economy and finance ministers, the document reads.
Reacting against the text, a coalition of NGOs, rail and e-fuel players today sent a letter to the Hungarian Presidency, Climate Commissioner Hoekstra and member states, urging them to drop the transport-related tax exemptions.
“We call upon Member States to reverse this proposal and come to its senses by appropriately taxing kerosene and maritime fuels,” Jo Dardenne, aviation director at Transport & Environment told Euractiv.
She added that the current proposal is “completely contradictory” with efforts to get aviation and maritime to net zero. [BM] |
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New report proposes ‘frequent flying’ levy in Europe |
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Yesterday think tank The New Economics Foundation (NEF) and the Stay Grounded network released a report which analyses the potential for a Europe-wide frequent flying levy.
It also proposes a roadmap for the levy’s implementation.
The analysis says that such a levy would raise €64bn - €51bn in the EU alone, and could generate funds amounting to 20% of the annual public investment the EU needs to meet its climate targets.
The levy would result in a 21% reduction in aviation emissions, if just 5% of people were to fly less. [BM] |
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Germany banking on more electric as way out of auto crisis |
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When carmakers struggle in Germany, almost everyone feels it. And the last two years have been particularly torrid for the German automotive sector.
Recent months have seen politicians and some industry leaders retrench, with energy focusing on overturning the EU’s de facto 2035 ban on the internal combustion engine.
But more recently, change is in the air. Jasper Steinlein reports from Berlin, where Germany leaders are again learning to love the electric car. |
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Industry, government agree to strengthen German wind energy |
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Yesterday the Germany economic ministry agreed with industry a joint paper to strengthen the country’s wind industry.
The paper outlines several actions: strengthening cybersecurity; ensuring a level playing field; reducing dependency on China in permanent magnet supply; and broadening the financing of wind projects.
European industry representatives welcomed the paper. “Well done”, said Wind Europe CEO Giles Dickson in a statement. [JS] |
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France to announce next offshore wind farm sites this morning |
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The French government will this morning release maps of the zones for 8 to10GW of offshore wind, that will be tendered as part of the ‘CFT10’ auction round.
The zones are located on the Atlantic and Mediterranean coasts and will be jointly outlined by the ministers for the sea, ecology, energy and social economy.
CFT10 should be launched at the beginning of 2025, ministerial services told journalists yesterday. They are hoping for an award in autumn 2026, and deployment by 2035.
The breakdown will be “relatively balanced” between floating and fixed offshore, services said.
France is targeting 18 GW of installed offshore wind by 2035. 1.5 GW has already been installed in France, comprising of three wind farms from the country’s first tender in 2011. A further 15 offshore farms are due to be deployed by 2035. [PM] |
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Better access to home renovation and e-mobility in France - report |
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French think tank I4CE launched this morning the first follow-up edition of its dedicated Observatory on the accessibility of home renovation and sustainable mobility for households.
The text focuses on the availability of public grants, to allow households of all incomes to renovate homes and acquire electric vehicles. Concerning home renovation, access between 2023 and 2024 improved for all French people and slightly more for ‘very modest’ owner-occupiers. Public subsidy contribution of 70 % (up to €70,000) and 60 % (up to with €40,000) are available for the most advantaged owner-occupiers. On EV mobility, the second-hand EV electric vehicle market has “finally taken off” in the first semester of 2024 with an increase in sales of 68% compared to the first semester of 2023, the Observatory noted. While subsidies help, there are still significant transition costs to be born, and access to finance remains difficult for many households with low or irregular incomes.
In line with the EU’s EPBD Directive, France aims renovate 900,000 energy-efficient homes a year by 2030. France should just about achieved 140,000 to 150,000 renovations in 2024. [PM] |
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Report: Dutch, Polish, Romanian grids least transition-ready |
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The Netherlands is not the only country which is building lots of renewables but few power lines.
Think-tank GLOBSEC warns that Poland and Romania are similarly lagging.
“Their reliance on outdated infrastructure, coupled with insufficient investment in modernisation, puts them at risk of missing their 2030 renewable energy targets,” the think-tank warns.
Poland will be phasing out coal but this will not be fully replaced by renewables. The country is betting on new nuclear power in the 2030s to close the gap. Meanwhile, Romania’s slow renewable growth will be covered by extra gas power – with CO2 prices rising, this power will likely be more costly.
“These costs should not fall on consumers," said Ján Mykhalchyk Hradický, the report’s author, who suggests that higher bills would slow down the shift to clean energy. Instead, EU recovery funds, carbon trading revenues and renewables subsidies should be used. [NK] |
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New consultation on French power grid tariffs for 2025-2028 |
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French energy regulator CRE announced yesterday the launch of a six-week consultation on the increase of the so-called ‘TURPE’ tax.
The French electricity transmission and distribution system operators have asked for the increase, to finance the adaptation of networks to the electrification of uses. The price tag is estimated at around €200 billion over the next 15 years. The issue is not easy. Against a backdrop of likely rise in energy taxes to replenish the flagging coffers of the French state, bill payers will not be keen to see network costs also rise.
There is also the risk of a vicious circle. A fall in purchasing power, and therefore in electricity consumption, could mean higher user bills, as the fixed network costs of electrification costs fall more heavily on those who still consume electricity. [PM] |
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French grid operator RTE launches ‘flexibility barometer’ |
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Launched yesterday, the barometer aims to monitor changes in consumer flexibility on an annual basis, with recommendations for improving the system if necessary. At European level, daily flexibility requirements are expected to increase by 133% between 2021 and 2030 in Europe, and by a further 250% between 2030 and 2050, as more variable generation enters the system. [PM] |
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Veolia sees €1bn opportunity in fight against PFAS, micropollutants |
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Yesterday French water treatment giant Veolia launched its ‘BeyondPFAS’ product, at a manufacturing site in Oroszlány, Hungary.
The site, the largest in the world, produces ultrafiltration membranes for water treatment
The group is looking to sell technologies for the PFAS and other micropollutant detection, as well as for the treatment and safe management of waste contaminated by these chemicals.
Veolia believes that these can win it €1 billion in sales by 2030. [NC] |
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Nuclear and renewables at odds over 'low carbon' hydrogen label |
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Brussels is still debating what constitutes low carbon hydrogen.
It’s a technical discussion, but the stakes are high - projects that secure the coveted ‘low carbon’ label will likely have a much easier time raising finance.
Nuclear supporters say the definition is not inclusive enough for them. While renewable supporters fear the terms are too liberal - and risk rewarding methane leaks across the globe
Nikolaus J. Kurmayer spoke with the players involved, including the German government, who are taking the definition discussion very seriously. |
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Opinion: Network charges can pave the way for industrial electrification, competitiveness |
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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 and Transport 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 digital@euractiv.com. |
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