Search

6. As concerns regional and bilateral agreements, the European Union had, as of December 2022, the largest network of RTAs in the world with 44 agreements in place. (...). The European Union sought to strengthen implementation and enforcement (...) by enhancing the enforcement mechanism of the Chapters on Trade and Sustainable Development in its RTAs.

7. The European Union also continues to facilitate trade with developing countries mainly through its GSP scheme, which has three components (i.e. standard GSP, the GSP+, and the Everything but Arms (EBA) arrangement) and covered 66 economies as of December 2022. The GSP, except for its EBA component, is expected to expire by the end of 2023 and a proposed regulation for its renewal for the period 2024-34 is under consideration. The proposed regulation contains the main characteristics of the existing programme while making some specific changes for beneficiaries to, inter alia, strengthen enforcement and support EU environmental objectives.

11. Several measures on exports continued to be maintained by the European Union, mainly due to various international conventions. Certain amendments were made to the Regulation on drug precursors and the Regulation on hazardous chemicals to amend the product coverage. (...)

12. (...) At the member State level, state aid (not related to COVID-19) continued to be directed to promote environmental protection and energy savings. (...)

13. (...) In 2022, a new European Standardization Strategy was issued wherein standardization is identified as key strategic tool to achieve EU environmental, digital, and economic objectives.

14. (...) In May 2020, the European Union adopted the Farm to Fork Strategy, which, inter alia, identifies the areas of action to achieve a sustainable EU food system during the period 2020-24, including possible reforms on feed additives, pesticides, plant protection, and animal welfare, as well as the establishment of a new legislative framework for sustainable food systems.

17. In agriculture, the previous Common Agricultural Policy (CAP) continued to be applied on a transitional basis as the new CAP was approved and entered into force in January 2023. The new CAP brings together the agricultural and rural development policies of the European Union, strengthening the focus on measures addressing climate and environmental concerns, and uses a more results-based approach. (...)

18. (...) The European Union continues to implement policies to address IUU fishing both domestically and with international partners. The revision of the European Fisheries Control system remains pending. In 2021, the Commission adopted an EU Forest Strategy for 2030 and in late 2022, the Council and the Parliament reached a provisional agreement on a regulation aiming to prevent deforestation and forest degradation, but its adoption remains pending.

19. The importance of energy and climate policies gained further impetus during the review period with the shift towards renewable and low-carbon energy, improving energy security, and reducing emissions to achieve climate neutrality. The 2021 Fit-for-55 package aims to align these policies with the climate-related goals of the European Green Deal and the Climate Law, which includes targets for GHG emission reductions. The package contains many policy initiatives that focus on emissions reduction through various channels from the demand- and supply-side, including complementing the Emissions Trading System with a Carbon Border Adjustment Mechanism, or reforming energy taxation. Most recently, the REPowerEU plan aims to diversify the energy supply, save energy, and facilitate an increase in clean energy generation. The Plan includes faster permitting rules for renewable energy projects and supporting the development of renewable hydrogen. A number of regulations established minimum storage levels for natural gas, voluntary gas demand reduction targets, and a cap for market revenues from electricity generation in 2022.

22. The Commission considers that capital markets will have to play an important role in achieving the objectives of the European Green Deal. Since 2020, the Taxonomy Regulation has defined which economic activities and investments qualify as sustainable or contributing to the low-carbon transition in this context, with an amended Sustainable Finance Disclosure Regulation aiming to limit "greenwashing" of financial instruments. Discussions regarding rules for Green Bonds have advanced.