November update: A Snapshot of Recent Developments

Winter may be upon us according to the meteorological calendar, but the regulatory and policy landscape remains anything but frozen.?

EU Policy Evolution:?

1. European Energy Directive?

Earlier this week, the European Commission formally released the proposed reporting scheme to rate the sustainability of data centres in the EU. This stems from the politically agreed text of the recast Energy Efficiency Directive (EED), which introduces a requirement to report on the energy performance and sustainability of data centre operations.?

2. Data Act Adoption:?

In early November, the European Parliament formally adopted the Data Act, complementing the already enforced Data Governance Act. This legislative move aims to foster a single market for data, allowing seamless transitions between cloud service providers and establishing safeguards against unlawful international data transfers.?

3. Reporting Rationalisation Consultation:?

Initiated on October 17, the European Commission called for evidence on the administrative burden of reporting requirements. Stakeholders are exploring avenues to alleviate these burdens, especially for Small and Medium Enterprises (SMEs). Proposed solutions encompass digital-readiness checks, an expanded European definition of SMEs, the abolition of redundant reporting obligations, legal clarity on reporting needs, collaboration between national transparency registers, and the European Single Access Point.?

4. Critical Raw Materials Act (CRMA):?

A compromise deal was reached between the European Parliament and the Council on the CRMA. During the consultation process, EUDCA suggested including aluminium on the list of critical raw materials as well as keeping this list updated, at least every two years. Additionally, we argued for improving the national circularity capacities by improving the recycling infrastructure in the EU. The CRMA will now need to be formally voted upon by Parliament and Council before entering into force.?

5. Net-Zero Industry Act (NZIA):?

Finalised on November 21, the Parliament's position on the NZIA significantly expanded the initial proposal by incorporating various net zero technologies. The concept of "Net-Zero Industry Valleys" was introduced to cluster technologies and enhance efficiency gains. Trilogue negotiations with the Council are imminent.

6. Council Recommendations on Digital Education:?

Released on November 23, the Council's recommendations aim to enhance digital education and training in the EU. This involves increased efficiency, cooperation between governmental agencies, and collaboration with stakeholders and the private sector. The Commission is urged to support knowledge exchange and digital upskilling.?

7. EU Action Plan for Grids:?

Published on November 28, the Commission's Grid Action Plan outlines key measures to improve the European energy grid. Addressing challenges like long-term planning and cooperation among stakeholders, the plan proposes 14 actions to align the EU's energy infrastructure with its climate goals.?

8. Cyber Resilience Act (CRA):?

On November 30, a compromise was reached on the CRA, aiming to set common cybersecurity standards for connected devices. The finalised text includes a simplified classification methodology and mandates a minimum product lifespan of five years. Manufacturers will be required to report actively exploited vulnerabilities.?

Committee Updates:?

EUDCA's core committees are the driving force behind our organisation. They steer initiatives, shape policies, and foster technical advancements crucial to industry growth and sustainability. Here's a glimpse of their recent activities:?

Technical Committee – The committee released its Scope Emissions White Paper, which explains the relevance of scope emissions reporting, the origins of the term, and the relevant standards. Furthermore, the paper provides an overview of how Scope emissions tracking can benefit a business, examines two reporting profiles within the tech industry, and finally takes a look at the relationship between Scope Emissions reporting and Whole Life Carbon Assessments (WLCAs).??

Policy Committee – In their November 14th meeting, the Policy Committee engaged in comprehensive discussions on ongoing developments. Key subjects included updates on the EED, Taxonomy on Sustainable Finance,?F-Gases Regulation, Waste Electric and Electronic Equipment Directive.??

National Trade Committee - Participants agreed that in the next working group that national trade associations will present national frameworks in their definition of data centres, key issues, and approach to IT equipment data.?

Events:?

Throughout November, the EUDCA team actively participated in various events, including the Digital SME Summit and the Euroheat and Power Summit. The summit aimed to connect European ICT SMEs with EU representatives and stakeholders, addressing crucial issues such as the digital transition skills gap.?

Poll Results:?

The European Data Centre Association - EUDCA recently conducted polls to understand the biggest influences within the industry. One poll aimed to discover the greatest challenge within the data centre sector, with 44% of voters finding energy costs to be the biggest barrier. Another poll sought to uncover the largest influence when selecting the location of a data centre, with 57% of voters indicating that energy costs are the main factor.?

And this is just a snapshot of the work we are doing here at the EUDCA. So, if you want more political insight, tools you will need to comply with upcoming regulation, and how you can actively shape the regulatory debate, come and join us.?