Welcome to Better Europe’s weekly update on EU Affairs.
COMMISSION TO FOCUS ON CURRENT LEGISLATION TO MEET CLIMATE TARGET
The Brussels bubble is eagerly awaiting the Commission’s official communication on the 2040 climate target due next Tuesday in Strasbourg – a leaked copy suggests that the headline figure will indeed be 90% of net greenhouse gas emissions reduction compared to 1990, building on the current 55% target for 2030. A 90% target would be in line with advice from the European Scientific Advisory Board on Climate Change and the Commission’s own impact assessment. However, to meet the ambitious target, the Commission seems to simply rely on full implementation of existing legislation, along with an increased level of ambition in the adjusted National Energy and Climate Plans which will need to be submitted this summer. A first European Climate Risk Assessment assessing our exposure to climate-related hazards is due this spring. The communication also heavily focuses on investment, and how the EU should develop a significant policy initiative to attract and mobilize more private investment, a topic that will be discussed at the March Council Summit based on Enrico Letta’s report on the Single Market and the Capital Markets Union.
EUROPEAN CENTRAL BANK ANNOUNCES CLIMATE AND NATURE PLAN FOR 2024 AND 2025
On Tuesday, the European Central Bank (ECB) announced its climate and nature plan for 2024-2025. The ECB recognises that price and financial stability can only be preserved if climate and nature are also “stable”. The ECB suggests to explore three new focus areas: navigating the transition to a green economy; addressing the increasing physical impact of climate change; and advancing work on nature loss and degradation. Among other things, the Bank aims to better incorporate green transition policies into conjunctural analysis and macroeconomic models, acquire and provide climate-related data, and, very practically, move to 100% organic cotton for new banknotes by 2027. New work will be undertaken to further integrate climate change impacts into climate scenarios and the analytical framework used for macroeconomic projections. The ECB will also consider the environmental aspects in its preparatory work for the design of the digital euro.
EUROPEAN AND NATIONAL PARTIES FINALISE LISTS FOR EUROPEAN PARLIAMENT ELECTIONS
Ahead of the European Parliament elections on 6 to 9 June, most European political parties are holding their party congress in February or March. At the conventions, parties are expected to announce their Spitzenkandidaten (lead candidates) for the top European Commission job and endorse their pan-European election manifestos. The European Greens meet this weekend, 2-4 February, in Lyon, with four potential lead candidates to choose from including two current MEPs: Terry Reintke (Germany) and Bas Eickhout (Netherlands), one of the Green’s lead candidates in 2019, who was this week confirmed as lead candidate for the national joint list with the Dutch social-democratic PvdA. On the liberal side, Didier Reynders, current Commissioner for Justice, this week said he is no longer interested in heading the European list for the Belgian MR, following the decision by European Council President Charles Michel to step down as head of list and remain in his current role until the end of his mandate. The liberal ALDE party meets on 20-21 March in Brussels. Other upcoming congresses include the European Left on 24-25 February in Ljubljana, the Party of European Socialists on 2 March in Rome, and the European People’s Party on 6-7 March in Bucharest.