Energy, Environment & Transport Pro Brief

Wed 9 October 2024 | View online
Estimated reading time: 4-5 minutes

Good morning ,

And welcome toWednesday 9 October’s daily Energy, Environment and Transport Pro Brief.


Today we report on how EU’s ‘Franco-German engine’ may be coming back to life - at least in the field of energy.


And that second hand t-shirt you picked up at the brocante? It turns out you were also boosting jobs and the economy.


Here are our other top stories for the day:

🟡Franco-German cooperation

German, French MPs want to relaunch ‘European Energy Union’

French and German MPs see the next Franco-German parliamentary session, scheduled for early December, as an opportunity to present a joint ‘proposal for deliberation’ on improving Europe's electricity and hydrogen networks.


The document, seen by Euractiv, is the iniative of liberal French MP Frédéric Petit, and has already been signed by seven German MPs from across the political spectrum, including the conservative (CDU/EPP) Andreas Jung, socialist (SPD/S&D) Karamba Diaby, ecologist (Die Grünen/The Greens) Felix Banaszak, and liberal (FDP/Renew) Sandra Weeser.


On the French side, Les républicains (LR/EPP) MP Nicolas Forissier, Horizons (Renew) MP Didier Lemaire and Renaissance (Renew) MP Emmanuel Lacrosse also signed the document, although the latter signed prior to the 7 July national elections, in which he was not re-elected.


Paul Messad dives into nuance of the German-French energy relationship, and explains why there is more clarity on the draft proposal, than there is on the next meeting’s date and agenda.

🟡Renewables

IEA sees world falling just short of COP28 renewables goal

In its annual renewables report released this morning, the International Energy Agency (IEA) predicts that global renewable energy capacity will be 2.7 times greater by 2030, falling just short of the COP28 commitment by 200 countries to triple renewable capacity by this date.


The IEA’s report foresees that almost 940 GW of renewable capacity will be added annually, with solar PV accounting for 80% of the growth.


Under the IEA’s main scenario renewables will account for almost half of global electricity generation by 2030.


Hydrogen production will be a “negligible” driver of new renewable capacity, while bioenergy and  geothermal will play a reduced role, “due to a lack of policy support”.


China alone will account for 60% of global capacity growth by 2030, according to the report.


However both the EU and US are both projected to double their pace of renewables, thanks to “competitive auctions and corporate power purchase agreements” in Europe and the tax credits provided by the US’s Inflation Reduction Act.


The report’s findings will be presented online at 11:00 Brussels time. [JS]

🟡Circular economy

Second-hand clothes boost economies by billions

A new report from Oxford Economics, commissioned by NGO network Humana People to People says that the circular textile economy contributed €7 billion to the joint GDP of the EU and the UK in 2023.


Karina Bolin, circular textiles director at Humana People to People said that the report "highlights the immense potential of the second-hand clothing sector to stimulate sustainable economic growth and create green jobs across all continents."


EU-level discussions to finalise a revision of the Waste Framework Directive, which affects the second-hand clothing trade, are due to begin later this month. Mandatory separate collection of textiles will come into force across the EU in January 2025. [NC]

🟡Climate

Climate not a priority for all in the 2024 EU elections

Voters in July's European Parliament elections had very different views on the importance of climate and the environment.


The Parliament-commissioned survey asked voters which were the main topics that motivated them to vote in July.


Voters in northern and western Europe were more likely to cite climate and environmental concerns, with 66% of Swedish voters saying these issues motivated them to vote.


In contrastonly 8% of Latvian voters felt the same way.


Voters were asked about seven issues in total, with climate and the environment being the second lowest priority for EU voters, behind cost of living, migration and concerns about the rule of law. [DC]

Germany acknowledges its forests are no longer carbon sinks

The German government’s latest ‘Federal stocktaking of forests’ report (BWI) presented to the public yesterday, concludes that “due to climate crisis and its repercussions,” the country’s forests have become carbon sources instead of carbon sinks.


Food and agriculture minister Cem Özdemir admitted it would take “patience and perseverance to reverse this by rebuilding the forests.”


One third of the country’s territory is covered by forests, an area that has slightly increased since the last stocktake in 2012.


The BWI report states that an “alarming” 20% of the total forest area has been damaged by “environmental calamities” such as drought and beetle infestation.  [JS]

French emissions drop by 3.6% in H1 2024

According to initial estimates from public agency CITEPA , in the first half of 2024 France reduced its GHG emissions by 3.6% (dropping 7.1 million tonnes of CO2 equivalent to 384 milllions) compared to the same period in 2023.


The energy sector accounted for 40% of the overall reduction, according to the 26 September figures. A better-than-expected nuclear performance and the continued development of renewables allowed the country to reduce its consumption of fossil fuels.


Industry emissions fell by 3.5% instead of the 0.5% drop previously forecast by the prime minister’s services (the SGEP).


However, the over-performance of the energy and industry sectors masks the fact that other sectors, such as construction and transport, are lagging behind their respective targets.


Overall emissions reduction must accelerate, to deliver an average annual drop of 3.9% between 2022 and 2026, according to the SGEP. [PM]

German climate scientists call for reality check on adaptation effort

The German Climate Consortium (DKK), an association of 28 national climate research institutes, is advocating for climate adaptation efforts to be based “on currently plausible scenarios,”  which reflect the likely overshoot of the 2015 Paris Agreement’s climate targets.


In a position paper (DE) published on Monday, the scientists emphasis both nuance and immediacy, saying that “there is no sharp point of transition from a safe climate to a dangerous change in climate,” and that climate change has already caused “significant damage in many parts of the world.”


The paper says that damage caused by a 2 degree rise in global temperature will be significantly worse than those predicted for a 1.5 degree rise, and warns against assuming that climate overshoot will be temporary.


DKK calls out consumer behaviour and corporate climate strategies as the main obstacles in the way of meeting the 1.5 degree goal. [JS]

Ahead of COP29, reports of escalating repression in Azerbaijan

Yesterday at an online press conference, NGOs Human Rights Watch and Freedom Now presented a new report alleging that the repression of civic activists, journalists, and human rights defenders is intensifying just weeks before Azerbaijan hosts COP29 in Baku.


“Climate action can only happen when independent voices are heard” said Myrto Tilianaki, senior advocate at Human Rights Watch during the presentation.


The report outlined the main methods it says are being used to silence critical voices, media and civic society organisations.


It also focuses on 33 cases of criminal prosecution and detentions that is says are politically motivated, and references accounts of physical assault and torture of detainees.


“In this critical time before COP29, states and UN officials should urgently call on Azerbaijan to immediately and unconditionally free arbitrarily detained activists and commit to upholding human rights at COP29 and beyond.” said Andrea Prasow, executive director of Freedom Now in a press release. [BM]

🟡Nuclear

France aware of, likely supports EDF’s Czech nuclear deal complaint

Industry and government sources told Euractiv yesterday that French officials were aware in advance of EDF's recent complaint to the European Commission, and suggested that authorities support the utility's position.


As reported on Monday and subsequently confirmed by EDF to Euractiv, the French utility lodged a complaint to the Commission, following Czechia’s decision in May to select Korea Hydro & Nuclear Power (KHNP) as the preferred bidder for the construction of two nuclear reactors in Dukovany.”


EDF had been competing against KHNP for the Czech contract, but were not selected.


A source close to the matter at industry level told Euractiv that the complaint "was filed in full transparency and communication with the French government," and that French authorities “support EDF's initiative”.


When asked for confirmation by Euractiv, the French energy ministry said it had “no further comment to make at this stage”.


However a source close to the matter within the administration told Euractiv that EDF had informed French authorities of its complaint in advance.


The source told Paul Messad that the French government continues to support EDF's export strategy, but did not comment explicitly on EDF's complaint to the Commission.

Questions remain on 15 October nuclear alliance meeting

In less than a week, members of the nuclear alliance are tentatively expected to meet alongside the 15 October Energy Council meeting in Luxembourg.


However “it has not yet been decided what we will discuss at the meeting”, an internal source at the French ecology and energy ministry told Euractiv.  

If the meeting takes place, it could provide an opportunity to discuss the European parliament’s auditions of incoming commissioners Dan Jorgensen and Teresa Ribera, a European diplomatic source told Euractiv.

On the French side, “it is highly likely” that the French minister for ecology and energy Agnès Pannier-Runacher will take part in both the alliance and Energy Council meetings, rather than delegated energy minister Olga Givernet, the two offices confirmed to Euractiv.  

Pannier-Runacher is the founder of the nuclear alliance and a former participant in the Energy Council during her spell as French energy minister between May 2022 and January 2024.

The internal source at the French ecology and energy ministry expects outgoing energy commissioner Kadri Simson to be present at any meeting of the alliance, but they “don't know if it's technically possible to invite Dan Jørgensen,” prior to his appointment.


The 15 October alliance meeting may yet be postponed. A high attendance is not guaranteed given that the Energy Council is taking place in Luxembourg, which is less accessible than Brussels.


If postponed, the next opportunity would be the 16 December Energy Council.

A later meeting of the alliance could be a better opportunity to discuss the sector’s financing, the EU diplomatic source said. For example a report by the OECD's Nuclear Energy Agency should be published prior to 16 December.


if approved by Parliament, Jørgensen could also attend a 16 December meeting. [PM]

🟡 Clean Industry

Thyssenkrupp green steel project reportedly in question

Citing “internal documents” from Germany’s largest steel manufacturer, German media outlet Handelsblatt reported yesterday that Thyssenkrupp is considering putting its green steel manufacturing project in Duisburg on hold.


The €3 billion steel plant, heavily subsidized by the German ministry of economy and climate action, is supposed to start operating in 2027, fueled by hydrogen instead of coal.


Following the reports Thyssenkrupp declared the internal review was of a “continual and open-outcome” nature, seeking the “best and economically most viable solutions” for the company's transformation towards climate neutrality.


The story broke at a time of financial struggle for Thyssenkrupp and just weeks after its entire board of directors was replaced.


The extensive media coverage prompted German Economy minister Robert Habeck to state that the project was continuing according to plan, and to call for “the necessary commitment” from Thyssenkrupp. [JS]

🟡 Council

Coreper preps for 15 October Energy Council

This morning at 10am national ambassadors will meet in Brussels to prepare the ground for a 15 October meeting of energy ministers.


The legacy of the 2022 energy crisis overshadows the meeting - energy prices and plans for the coming winter are key discussion points.


While Europe’s gas storage levels are high, diverging energy prices remain a concern – particularly in Romania, Greece and Bulgaria.


The topic was included on the agenda following letters to the Commission from the three countries’ energy ministers and the Greek Prime Minister in September.


The countries are experiencing power price spikes, and cite power flows to Ukraine as a contributing factor.  


Delegates will also receive a presentation on the energy situation in Ukraine, as temperatures drop and Russia continues to targets the country’s substations and generators. Our Global Europe Editor Alexandra Brzozowski wrote recently about Ukraine’s fight to keep the lights on this winter. [DC]

🟡 Comissioner hearings

More info on audition questions and timings

Committees’ written questions to incoming Commissioners continue to circulate around Brussels.

Questions from the ENVI and EMPL committees are the latest to make the rounds.

ENVI wants as much specifics as possible from incoming clean transition executive vice-president Teresa Ribera, and want to know how she plans on working with industrial strategy commissioner hopeful Stéphane Séjourné.


On Séjourné, ENVI is mostly interested in his plans to enforce and improve CBAM, the EU’s carbon tariff scheme. They also want more information on his planned work on chemicals – particularly the REACH proposal and a potential ban on PFAS.


ENVI want returning climate commissioner Wokpe Hoeksta to say how citizens will be protected from high carbon taxes on road and heating fuels. They are also interested in his vision for carbon removal in the 2030s.


As to be expected, ENVI has a wide range of questions for the designated environment commissioner Jessika Roswall, covering all the main issues in her mission letter from Commission President Ursula von der Leyen.


The EMPL committee say that, in spite of the ‘Just Transition’ reference in her job title, Ribera’s mission letter “barely mention the social aspects of the just transition.” The committee wants to know concretely what Ribera will do to remedy this – including her future plans for the Social Climate and Just Transition Funds.


EMPL is interested in how Séjourné will use his planned reform of the Public Procurement Directive to boost workers’ rights.


Two potential dates for the hearings circulated in Brussels yesterday. Euractiv’s Magnus Lund Nielsen and Owen Morgan shared both the docs and their analysis. [DC]

🟡 Across the Capitals

Read more

Today’s brief was brought to you by Euractiv’s Energy, Environment & Transport team

Today’s briefing was prepared by the Energy, Environment and Transport team: Donagh Cagney, Nathan Canas, Paul Messad, Nikolaus J.Kurmayer, Jasper Steinlein and Bárbara Machado, and with the keen eyes of Euractiv proofreaders. Share your feedback or information with us at digital@euractiv.com.

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