?European Energy Monthly | Issue 2
FleishmanHillard EU
The leading EU government relations, public affairs and communications consultancy in Brussels.
Welcome!
As we get closer to the European Elections, the existing obstacles to the energy and climate transition are becoming key issues of contention. In today’s issue, we wanted to highlight the lack of available climate and energy transition finance and its impacts. While this is not a new issue, the European Environment Agency’s new European Climate Risk Assessment once again showed us that insufficient financing is available, also for climate change adaptation.
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In the response by the European Commission in its Communication on Managing Climate Risks, it is highlighted that climate damages could even reduce EU GDP by 7% by the end of the century. The cost of droughts alone is €9 billion per year. A significant mobilisation of finance is clearly needed, not only to prevent and reduce these climate risks, but also to reduce emissions in the first place and maintain a competitive EU industry.
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The complexity is that a wide range of sectors are asking for more funding, from energy-intensives in their recent Antwerp Declaration to the nuclear industry at their summit in Brussels last month. Moreover, some of the industries that should facilitate decarbonisation such as renewables are not necessarily thriving either as you can find out in our National News section below. Both national governments and the next European Commission leadership will need to make tough decisions on which industries to prioritize and how to adapt to different regional climate risks.
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To stay up to date with the next steps for the EU Green Deal, as well as the latest reactions and developments at national level, take a look at our other sections below and keep an eye out for our next monthly editions. The European Energy Monthly is compiled by FleishmanHillard's Energy Community of 18 public affairs offices across Europe, ready to help you monitor, support, and engage on energy and climate change legislation.
KEY UPCOMING ENERGY EVENTS
10 April 2024 |?Spanish Clean Energy Forum
Organizer: Olivo Energy
Location: Malaga, ES
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18 April 2024 | Eurogas Annual Conference
Organizer: Eurogas
Location:?Brussels, BE
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18 – 19 April 2024 | Europower & Ozepower Conference
Organizer: MMC Poland, Polish Energy Regulatory Office
Location: Warsaw, PL
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21 – 24 April 2024 | Future Offshore
Organizer: Federal Wind Offshore Organization
Location: Berlin, DE
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8 – 10 May 2024 | Next Mobility Exhibition
Organizer: Fiera Milano SpA
Location:?Rho (Milan), IT
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4 – 6 June 2024 | BDEW Congress
Organizer: Federal Association of the Energy and Water Industry
Location: Berlin, DE
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18 – 19 June 2024 | Global Offshore Wind?
Organizer: RenewableUK
Location: Manchester, UK
领英推荐
EUROPEAN UNION NEWS
Climate resilience communication: On March 12, the European Commission launched its climate resilience communication, outlining key actions to manage climate risks, aiming to protect people and the economy in light of the increasing impact of extreme weather events.
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Nuclear shift: Belgian Prime Minister Alexander De Croo stated the EU should wean itself off Russian nuclear fuel as soon as possible, noting how the shift away from Russian gas should not generate another dependency: in 2022, 30% of the EU's enriched uranium came from Russia.
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Carbon slump: a dip in the price of carbon, hovering above 50 euros per ton of emissions, has been a source of worry for EU policymakers, as a long-term price reduction could hinder the Emissions Trading System, deemed the 'crown jewel' of the EU's green strategy.
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EU-AU cooperation: the European Commission will sign a strategic partnership with the Australian government to secure supply of raw materials, especially lithium, doubling down on the EU’s efforts to reduce its dependency from China.
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A resilient energy system: The Brussels-based think tank CERRE published a paper on the regulatory regime for gas and electricity operators, looking into whether regulation on investment and operation practices should be reviewed, taking resilience aspects into consideration.?
NATIONAL NEWS
Solar: Swiss solar panel producer Meyer-Burger is closing its last German plant due to intense competition from Chinese manufacturers and a lack of public funding.
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Hydro: Despite recent droughts, Spain's hydropower has set new records, highlighting the contrast between the country's rain-heavy Atlantic basin and the increasingly dry Mediterranean.
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Nuclear: Poland is to complete its nuclear audit in April, determining whether 2033 is a realistic date for commissioning its first nuclear power plant.
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SMR: IPCC report raises doubts about France’s promises for Small Modular Reactors, as feasibility may not hold up under analysis of costs, risks, and technologies.
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Gas Power: The UK Government announced a pivotal shift in its energy strategy, underscoring a renewed commitment to develop new gas-fired power plants in the future. Energy Secretary Claire Coutinho stated that all new gas power stations will be “net zero ready”, i.e. ready to connect to carbon capture technology or to utilize hydrogen instead of gas.
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Mediterranean outlook: Italian Prime Minister Giorgia Meloni embarked on a state visit to Egypt with European Commission President Ursula von der Leyen. Meloni discussed joint cooperation opportunities in the energy security area with Egyptian President Abdel Fattah al-Sisi, including the possibility of setting up an electrical connection with Italy.
Energy Discovery Of The Month
Germany Launches CCFDs - The First of Many?
Everyone is talking about Carbon Contacts for Difference (CCfDs) as an instrument for promoting climate protection technologies. The idea is that the subsidized companies are paid a variable subsidy, the amount of which is based on the additional costs of the climate-friendly installation compared to the conventional installation. If climate-friendly production becomes cheaper than conventional production, the payment is to be reversed: The subsidized companies then pay back their additional revenue.
On March 12, Germany was the first country in the European Union to launch tenders for CCfDs worth €4 billion. The funding is aimed at large industrial CO2 emitters, such as those in the chemical sector. Both investment and operating costs will be funded over a period of 15 years. The contracts are designed in such a way that companies can change and optimize technologies at any time.
The first tendering procedure will run for four months and only companies that took part in the preliminary procedure last year can participate. Another round of tenders will take place later this year, for which a further €19 billion has been earmarked in the German federal budget. Two more tenders are to follow in 2025. Information for interested companies is available on a website of the Federal Ministry for Economic Affairs and Climate Action. However, this is currently only available in German.
ENERGY AND CLIMATE AT FLEISHMANHILLARD
Financing the climate-neutral transformation of the economy and energy system was also the topic of FleishmanHillard's Energy & Climate Roundtable on March 12 in Berlin. Our guest Bengt Bergt, deputy spokesman for energy for the governing SPD parliamentary group in the German Bundestag, calls for a simple and secure way for citizens to invest their savings profitably in the energy transition.
"We need to make it more attractive for citizens to invest. At 12%, our savings rate is one of the highest in the world, capital that could be channeled into the transformation. By introducing transformation bonds, I see an option to mobilize additional money for the energy transition."
OUR TEAM AT FLEISHMANHILLARD
Our community is made up of public affairs and public relations specialists in the fields of energy, climate and sustainable transport policy in our EMEA offices. We strive to be a true pan-European team sharing the latest intelligence from our jurisdictions and cooperating on a wide range of clients and projects. This makes us uniquely equipped to execute multi-market strategies to achieve your targets.