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4.129. According to the European Green Deal, energy infrastructure is a key enabler for the energy transition and in 2022 a revised Trans-European Networks for Energy (TEN-E) regulation was published, aiming to reflect expected necessary changes to the energy system resulting from objectives spelled out in the European Green Deal. The TEN-E links the energy infrastructure of EU member States and the regulation identifies 11 priority corridors that would connect currently isolated areas, strengthen existing cross-border connections, and support integrating renewable energy. According to the revised regulation, the categories of energy networks include those for electricity, gas, hydrogen, electrolyser facilities, and carbon dioxide, a change from those identified in the previous regulation. [162] As under the previous regulation, projects of common interest will be identified, but these will be complemented with projects of mutual interest, linked to energy networks in third countries. The Connecting Europe Facility for energy foresees the provision of EUR 5.8 billion for investments into the energy infrastructure that contribute to the achievement of projects of common interest and those of mutual interest, as well as "cross-border projects in the field of renewable energy" , over the period 2021-27. (...)
[162] The previous regulation also included a category of oil, and did not include those for hydrogen and electrolyser facilities.

4.130. To establish a new regulatory framework for competitive decarbonized gas markets, the Commission adopted proposals for a new Gas Market and Hydrogen Directive and Regulation to recast the current Directive and Regulation for the gas market to also include renewable gas and hydrogen. These efforts are linked to the Hydrogen Strategy, which contributes to the European Green Deal and builds on the new Industrial Strategy as well as the European Union's recovery plan (Section 3.3.1.1) by ensuring hydrogen can play a role in decarbonizing the economy. Outlining the need for international cooperation, the strategy aims to establish a regulatory framework and to incentivize supply and demand in "lead markets", while also establishing infrastructure with non discriminatory access to make widespread use of hydrogen feasible, for example in transport.

4.133. Overall, energy subsidies were broadly stable between 2019 and 2020 where they reached EUR 173 billion, but increased in 2021 according to preliminary data, as energy subsidies for renewable sources of energy increased, as did subsidies for "all energies" (either not allocatable or related to energy efficiency). (...) Income and price support for renewable energies (mostly feed-in tariffs and premiums) and tax expenditures for fossil fuels accounted for 41% and 20% of total subsidies in 2020. (...)

4.134. The European Union published a Communication on the EU External Energy Engagement in a Changing World, linking various objectives. To strengthen energy security and resilience, it aims to diversify the EU's gas supply (as well as other energy) away from the Russian Federation, develop renewable hydrogen trade, and prioritize energy savings and efficiency. It also spells out the objective of leading the global green and just energy transition, including by promoting renewable technologies and efficiency abroad with funding from the Global Gateway initiative, and to develop raw material value chain partnerships with third countries to ensure diversity of supply of critical raw materials. (...)

4.136. (...) To save energy, facilitate the increase in the generation of clean energy, and diversify the origin or energy imports/supplies, the Commission published the REPowerEU Plan in May 2022. Some of the Plan's short-term measures include setting certain targets for gas storage prior to the winter months, establishing a platform for common gas purchases, accelerating renewable energy projects [172] , and encouraging citizens to use less energy. Over the longer term, it makes available significant resources (close to EUR 300 billion) under the Recovery and Resilience Fund for investments and policy reforms (including for faster approval of renewable energy projects), proposed to increase the target for the use of renewable energy [173] , and foresees efforts to improve the regulatory framework for, and production of, hydrogen. REPowerEU also proposes to increase the revised target for energy efficiency under the Energy Efficiency Directive from 9% to 13% (Section 4.4.1).
[172] The framework to accelerate the deployment of renewable energy was adopted in late December 2022 with Council Regulation (EU) 2022/2577.
[173] The Council confirmed that it maintained a target of 40% as part of its general approach in late December 2022. Council of the EU, "REPowerEU: Council Agrees on Accelerated Permitting Rules for Renewables", 19 December. Viewed at: https://www.consilium.europa.eu/en/press/press-releases/2022/12/19/repowereu-council-agrees-on-accelerated-permitting-rules-for-renewables/.

4.144. In recent FTAs and to varying degrees, the European Union covered trade in raw materials and energy goods for the climate transition, included disciplines to remove tariffs and/or non-tariff barriers to trade and investment in renewable energy generation, or put in place a framework for (regulatory) cooperation. According to the Commission, further alignments of the Energy and Raw Materials chapter towards the objectives of the European Green Deal continue.

4.168. The ECB's [The European Central Bank] first climate stress test estimated potential losses of around EUR 70 billion to the banks included in the assessment, in case of a disorderly transition to a low-carbon economy. It stressed that this assessment likely understated actual climate-related risks due to a variety of factors. It also found that most banks do not yet sufficiently consider climate risks in credit risk assessment or stress tests. {219}
{219} ECB (2022), "Banks Must Sharpen Their Focus on Climate Risk, ECB Supervisory Stress Test Shows", 8 July. Viewed at: https://www.bankingsupervision.europa.eu/press/pr/date/2022/html/ssm.pr220708~565c38d18a.en.html.

4.179. Looking forward, two Commission proposals aim to strengthen the framework by (i) introducing more risk-sensitivity and proportionality, in particular the new category of low-risk profile undertakings, improving the approach to supervision (including for groups and cross-border), and including macro-prudential and climate-related tools [241] ; (...)
[241] European Commission Proposal COM(2021) 581. As spelled out in the Strategy for Financing the Transition to a Sustainable Economy, this proposal would require insurers to identify material exposure to climate change risks and assess potential business impacts and task EIOPA to assess the possibility to introduce a dedicated prudential treatment of such risks.

4.180. (...) A number of Regulations and Directives were amended in substance, in particular the Benchmark Regulation (regarding "third-country benchmarks", the supervision of critical benchmarks, and regarding climate-related benchmarks); (...)

4.183. To facilitate access to finance under the first objective of the CMU [Capital Markets Union] Action Plan, the Commission, for example, adopted a proposal for a European Single Access Point in November 2021 that would make all financial and sustainability-related information that companies are required to publish, as well as information on investment products, available to investors , (...)