Rapporteur Talks

The Energy Performance of Buildings Directive (EPBD) revision plays a central role in the overall Fit For 55 package and is an important contributor to unlocking ambitious environmental, societal and financial benefits.

It is also an opportunity to integrate a multiple benefits approach, rather than primarily focusing on energy.

To create a sustainable, future-proof and energy-efficient building stock, we need to put people at the centre. Typically, we spend around 90% of our time indoors, so bettering the conditions of our indoor climate – and thus our health and well-being - is an important driver for renovation, alongside improving energy efficiency, mitigating climate change, and reducing the energy bill and dependence.

The EPBD proposal goes further than energy performance requirements by introducing carbon emission reduction targets, and putting more emphasis on multiple benefits of energy efficiency, including improving indoor environmental quality and reducing energy poverty.

It also introduces new building tools to boost renovation rates, supports the digitalisation of energy systems for buildings, and facilitates more targeted financing to investments in the building sector.

How can we best ensure these new, holistic approaches to energy efficiency and the EBPD are properly accounted for and factored into the final directive and the new tools - EPCs, Renovation Passports, MEPs – it proposes?

Relisten to this EURACTIV Virtual Conference to find out how the revision of the EPBD can support a healthy indoor climate while accelerating a decrease of energy costs and decarbonising our buildings. Discussed questions included:

- What's the current state of buildings in the EU and how can the EPBD help achieve a faster transition towards sustainable and healthy buildings?
- What will be the costs and economic/societal benefits of such a building transition?
- What data and definitions are we lacking to properly account for the impact of multiple benefits?
- How can we ensure energy efficient, decarbonised and healthy buildings?
- What lessons has the COVID-19 pandemic taught us when it comes to buildings? How can good ventilation in buildings contribute?

The European Commission has recently adopted a proposal for a Directive on Corporate Sustainability Due Diligence, which aims to foster sustainable and responsible corporate behaviour throughout global value chains. Companies are at the heart of the proposal and they will be required to identify and, where necessary, prevent, end or mitigate adverse impacts of their activities on human rights and on the environment. A number of Member States have already introduced national rules on due diligence and some companies have taken measures at their own initiative.

The due diligence regulation is very important for industries, especially the ones that largely depend on the import of critical raw materials, such as battery manufacturing. On 17 March, the European Council adopted a so-called “general approach” to the batteries regulation, following a proposal tabled by the European Commission in December 2020. The regulation aims to set up a circular economy sector by targeting all stages of the life cycle of batteries, including responsible sourcing. The Council and Parliament will now start trilogue negotiations with a view to progressing towards an agreement.

Some industry stakeholders argue that policymakers should seek a coherent and consistent approach on sustainability and due diligence throughout EU legislation, as choosing specific approaches for different legislative pieces could lead to inconsistencies and confusion. Moreover, they stress the importance of industry-led schemes aligned with standards recognised by independent third parties, such as the Organisation for Economic Co-operation and Development (OECD) and approved by the International Social and Environmental Accreditation and Labelling Alliance (ISEAL Alliance), as they are tailored to the specific characteristics of specific industries. Another point brought forward by the industry is the importance of having realistic time-frames for action.

Relisten to this EURACTIV Virtual Conference to find out about responsible sourcing and due diligence. How can companies best develop tools and standards that fit the upcoming European legislation? And how can the European Commission ensure there is a coherent approach for all actors involved?

The EU's Single Use Plastics Directive (SUPD) introduces a 90% collection target for beverage PET (polyethylene terephthalate) bottles by 2029 and also mandates that they should contain at least 25% recycled plastic by 2025, and 30% by 2030. To meet EU food safety and quality standards, PET bottles must be of food-grade quality. Effective bottle-to-bottle recycling is therefore a prerequisite to ensure that the targets laid down in the EU SUPD are met.

However, the versatility of PET bottles brings high demand from a variety of industries. An increasing number of non-food industries are using PET materials in their products. Some analysts claim this leaves the beverage industry with unfair competition and difficulty in delivering EU Green Deal objectives to increase resource efficiency and accelerate the transition to a circular economy.

The beverage industry is thus calling on the European Commission to introduce a "right of first refusal mechanism" on recycled PET in the revision of the EU Packaging and Packaging Waste Directive (PPWD). They argue that such preferential access to recycled PET that the industry puts on the market, and of which it finances the collection, will accelerate its transition to a more circular economy.

The industry is also calling on the Commission to adopt minimum requirements for new Deposit Refund Systems (DRS) in the revised PPWD. Deposit Refund Systems are collection schemes whereby consumers pay a small amount of money (a deposit fee) for their packaging at the point of purchase and are reimbursed upon the return of the empty packaging to specific collection points.

Relisten to this EURACTIV Virtual Conference to find out what’s the best recipe for meeting circular economy and climate objectives and whether DRS are an efficient way to meet collection and recycling targets for EU natural mineral and spring water producers set in the EU’s Single Use Plastics Directive. Discussed questions included:

- Can PET bottles be prevented from being downcycled?
- What are the challenges in making Deposit Refund Systems effective?
- Can a “right of first refusal mechanism” be delivered in the revision of the EU Packaging and Packaging Waste Directive?
- Can beverage manufacturers be given back the same amount of recycled content that they bring on the market?

Food supplements are concentrated sources of nutrients (or other substances) with a nutritional or physiological effect. They are typically taken in “dose” form, such as pills, tablets, capsules, liquids in measured doses.

The European Commission's Food Supplements Directive of 2002 aims to protect consumers against potential health risks from food supplements products and to ensure that they are not provided with misleading information. It also establishes a core framework for the marketing of supplements in the EU. With respect to the safety of food supplements, the Directive lays down a harmonised list of vitamins and minerals that may be added for nutritional purposes in food supplements.

Over the past 20 years, the market in supplements has developed significantly and there has been a much greater recognition by consumers. In addition to the 2002 framework, a wide range of EU food legislation is in place which covers food supplements. This includes additives, contaminants, labelling, hygiene claims.

The European Commission is also working on two areas that are not currently harmonised at the EU level: the maximum levels of permitted vitamins and minerals in food supplements, and the use of botanical ingredients.

Relisten to this EURACTIV Virtual Conference to find out what a potential policy framework for supplements could look like, given the regulatory environment is broadly in place. Addressed questions included:

- How can supplements play a role in helping build more resilient societies and reduce the burden on national health systems?
- Since deficiencies in a range of vitamins and minerals still exist in the EU, can supplements help redress this imbalance?
- Can food supplements help governments achieve their objective of keeping an ageing EU population healthy and productive?

In December 2021, the European Commission adopted a Communication on Sustainable Carbon Cycles, in which it identifies complementary solutions to CO2 emissions reductions to achieve the EU’s goal of climate neutrality by 2050.

Indeed, to maintain the atmospheric concentration of CO2 at levels compatible with the objective of the Paris Agreement, solutions to capture carbon emissions directly from the atmosphere are needed. Some of these solutions include promoting carbon farming practices under the Common Agricultural Policy (CAP), and standardising the monitoring, reporting and verification methodologies needed to provide a clear and reliable certification framework for carbon farming and carbon removals.

There are two types of carbon removal solutions: nature-based and industry-based ones. These involve different levels of maturity and market readiness and have different impacts on the involved stakeholders. Each solution has specific advantages and challenges that need to be addressed, contingent on its accessibility to users and complexity of implementation.

However, the challenge of setting a regulatory framework that would foster trust and mobilise potential parties remains. Independent measurement and verification are essential to ensure that carbon removals have been properly conducted and that the carbon is effectively and permanently removed from the atmosphere. Such verification not only ensures the most effective implementation of climate policies, but also helps eliminate false reporting and greenwashing.

Relisten to this EURACTIV Virtual Conference to find out how we can ensure the validation of carbon removals in a way that satisfies consumers, industry and policymakers. How can we overcome the ongoing differences in the calculation of emissions and harmonise methodologies? And how can buyers, land managers, technological companies, investors, and policymakers agree on clear and common standards?

The price of European Union allowances in the EU Emission Trading Scheme (EU ETS) reached an all-time high this winter, with a record high close to 100 €/t of CO2 in February 2022. This surge in allowance price levels and volatility occurs in the context of a crisis in European energy markets, with a sharp increase in commodities prices, and in a context of uncertainty about the scope and the ambition of the ongoing reform of the EU ETS.

Last July, the Commission presented a legislative proposal which aims for emissions from the current EU ETS sectors to be reduced by 61% by 2030, compared to 2005 levels. To reach this target, the Commission proposes a steeper annual emissions reduction of 4.2%, following a one-off reduction of the overall emissions cap by 117 million allowances.

Under the EU ETS, regulated entities buy or receive emissions allowances, which they can trade with one another as needed. At the end of each year, regulated entities must surrender enough allowances to cover all of their emissions. If a regulated entity reduces its emissions, it can keep the “saved” allowances to cover its future needs or sell them to another installation that is short of allowances. A Market Stability Reserve, in place since 2019, stabilises the market by removing surplus allowances from it.

Recent market developments have raised questions regarding speculative trading, whether and to what extent the participation of financial players should be constrained, and if so, what would be the best mechanism to do so. More generally, it has revived the debate on the potential measures to stabilise EU allowances prices as Europe’s ambition to fast track the decarbonisation of its economy requires a strong and predictable carbon price signal.

According to industry stakeholders, allowance price instability and lack of predictability could have significant short- and long-term consequences on the EU policy objective of fast-tracking decarbonisation, including higher compliance costs for obligated entities and higher decarbonisation costs. They underline the need for a review and potential regulation on the role of financial trading in the EU ETS market, as well as the need to address some of the structural issues that induce price instability.

Relisten to this EURACTIV Virtual Conference to find out about the possible impacts of excessive speculation on the functioning of the EU ETS market. What measures could be taken to mitigate the risk of excessive speculation, and more broadly to stabilise allowances prices and improve the EU ETS market functioning?

The EU’s proposed carbon border adjustment mechanism (CBAM) was adopted by the European Commission in July 2021 to complement the EU Emissions Trading System (EU ETS). The goal is to reduce greenhouse gas emissions cost-effectively in line with the Fit for 55 objectives. Products from the following sectors will be impacted: cement, aluminium, fertiliser, electricity, iron and steel.

CBAM aims to impose a CO2 charge on products entering the EU so that European industry can play on an equal footing with foreign manufacturers. According to the European Commission, the main objective of CBAM is to counteract the risk of carbon leakage, which will increase due to higher European carbon prices. In the long term, CBAM should gradually replace the free allowances distributed through the EU ETS. The issue of exports recently heated up at the European Council, where Member States agreed on the general approach on CBAM, leaving the exports issue for a later stage.

However, several European industries have expressed their concerns that the CBAM only levels the playing field for imports and that no solution has been proposed for exports leaving the EU. They also stress that there is a high risk that EU products would be replaced by more carbon-intensive products, which would be counterproductive. This leads them to call EU decision-makers to include an export mechanism in the CBAM Regulation.

Yet, as it stands today, they argue that CBAM would hinder the reach of European industry in global markets. The industry expects the EU to boost sustainable trade globally by facilitating the export of low carbon products. An example of this is the fertiliser sector, where trade flows follow the natural growing season of crops across the world. By providing nutrients for farmers to harvest high quality crops, the fertilizer sector contributes to food security in Europe and globally, while guaranteeing EU’s strategic autonomy.

In January this year, Kazakhstan experienced a series of large protests, sparked by the sudden increase of fuel prices, after the government had removed a previously enforced price cap.

The protestors first came out into the streets in the petroleum-producing city of Zhanaozen in western Kazakhstan but then spread rapidly across the country, first to other oil and mineral producing regions and then to other districts of Kazakhstan.

Protestors' demands and grievances varied widely. They included oil workers as well as liberal activists in Almaty, Kazakhstan’s largest city. Young people throughout the country also joined in.

An array of related challenges were brought forward: inflation, inequality of opportunity, corruption, injustice, lack of benefits, fuel prices, low wages, and lack of labour bargaining power. According to Kazakh officials, peaceful demonstrations were hijacked by violent criminals.

Kazakhstan’s President Kassym-Jomart Tokayev reacted by declaring a state of emergency and announced that the Collective Security Treaty Organization will step in to help the Kazakh forces to protect the strategic facilities. He also made radical changes to the country’s national security leadership. Former President Nazarbaev stepped down from the position of the chair of the National Security Council.

A few days after the protests swept across some city centres, the government declared that constitutional order had been mainly restored in all regions and promised ambitious economic reforms, aimed at reducing the state's deep involvement in the economy and bridging the gap between the wealthy minority and the majority of the population.

Relisten to this EURACTIV Debate to find out about the recent unrest that shook Kazakhstan and the way forward in building back better. Will the recent internal strife prompt real change? How will president Tokayev move forward? How will the demands and needs of protesters be addressed?

The European Environment Agency estimates that long-term exposure to poor air quality is responsible for over 400,000 premature deaths in Europe every year. The worst air quality read-outs are reported during winter, when temperatures are very low and there is high demand for heat. In some countries, one of the causes of poor air quality is the employment of old and inefficient coal or wood-burning stoves used in households.

Very often, fuels of the poorest quality are used in old stoves. This results in the emission of significant amounts of dangerous substances such as PM2.5, PM10 and various chemical compounds. Moreover, the emissions are released from chimneys that are not very tall and located close to other residential buildings. The volume of these so-called “low-level emissions'' mean that they have a considerable impact on air quality.

A practical way to resolve the problem could be replacing old, inefficient household heat sources and encouraging the usage of good-quality fuels. Another solution, which might be even more effective in urbanised areas, is a district heating system that provides clean heat to numerous end users.

In its proposal for recasting the EU Directive on Energy Efficiency, the European Commission has put a particular emphasis on district heating and cooling, where the definition of “efficient” systems will gradually be tightened to move away from fossil fuel-based systems. In cogeneration, the aim is to introduce additional criteria for specific emissions in high-efficiency cogeneration (270 gCO2/kWh). District heating will be also influenced by the revision of the Energy Performance of Buildings Directive (EPBD).

Some industry stakeholders have expressed concerns about the new definition of efficiency and they urge the Commission to keep current criteria for the share of high-efficiency cogeneration heat until 2030.

Relisten to this EURACTIV Virtual Conference to find out about the link between pollution and district heating systems, and the impact that the proposal for the recast Energy Efficiency Directive plays in this regard.

The Digital Services Act (DSA) is the most significant update of Europe’s digital rules in over two decades. The European Commission sees the DSA as being a core plank of making Europe fit for the Digital Age. But what does this mean in practice, and does the DSA fit the bill?

According to the Commission, the new rules are proportionate, foster innovation, growth and competitiveness, and facilitate the scaling up of smaller platforms, SMEs and start-ups. The responsibilities of users, platforms, and public authorities are rebalanced according to European values, placing citizens at the centre.

The Digital Services Act includes rules for online intermediary services, which millions of Europeans use every day. The obligations of different online players match their role, size and impact in the online ecosystem.

The EU institutions are now entering the final phase of negotiations following an intense legislative process in the European Parliament which saw a number of new amendments proposed. These amendments covered a wide range of issues that will have significant implications for how we use and interact with online services for years to come.

Relisten to this EURACTIV Debate to find out about the DSA and its impact on Europe’s digital economy. Discussed questions included:

- What will change for users of online services?
- Will online marketplaces continue to function effectively with the proposed KYBC and product requirements?
- How will ‘user redress’ work?
- What effect will content moderation requirements have on user content?
- Can the data protection and data access requirements operate in parallel?
- What will digital advertising look like?