Search

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.

23. (...) In the area of rail transport, reforms agreed under the fourth EU Railway Package in 2016 were phased in, while for air transport, the Commission approved a revised proposal to reform the "Single European Sky", which also aims to address carbon emissions. (...)

1.1. (...) Guiding its direction and policies on the economy and trade, the Treaty on European Union provides that the European Union will pursue "(...) and a high level of protection and improvement of the quality of the environment" (Article 3).

1.16. The European Union has set out its common Policy Objectives and Priorities for 2020-2024, which identify its political goals or top priorities. Several of these policy objectives have an impact on the European Union's economic policy direction, including ensuring a full recovery from the COVID-19 pandemic; prioritizing actions that accelerate the transition to a fairer, healthier, greener, and more digital society; and strengthening the economy to make it more resilient and robust. As part of this policy direction, six broad strategic priorities have been identified, each with a number of plans, sub-components, strategies, or agendas that contribute to the overall objective:
(...)
• A European Green Deal – Striving to be the first climate-neutral continent;
(...)

1.17. (...) In March 2020, the European Union issued a communication on the circular economy and its action plan, which sets out to mainstream the circular economy and make sustainable products, services, and business models the norm. Through the action plan, the policy addresses a number of issues such as designing a sustainable product policy framework, improving waste prevention policies, and addressing key product value chains. The European Green Deal includes a number of proposals for reducing greenhouse gas emissions through climate, energy, and transport policies (see also Section 4). [18]
[18] A presentation to the Committee on Trade and Environment in October 2022 includes selected initiatives, i.e. a proposal for a Carbon Border Adjustment Mechanism (CBAM), a proposal for a new regulation on waste shipments, and a green claims initiative.

2.4. During the review period, the European Union embarked on a new development strategy under the European Green Deal (2019) with the aim of becoming a carbon-neutral economy by 2050. This target became binding in July 2021 with the adoption and entry into force of the Regulation establishing the framework for achieving climate neutrality (European Climate Law). (...) These strategies, in particular the European Green Deal, imply significant changes and coordination across sectors and policy areas, and have led to the review of various EU policies including, inter alia, its agriculture, energy, industrial, and trade policies.

2.6. (...) The new policy – An Open, Sustainable, and Assertive Trade Policy – was published in February 2021 following a public consultation process. The policy sets the European Union's priorities until 2030 and replaces the Trade for All Strategy that had been in place since 2015.

2.8. Regarding the multilateral trading system, the new strategy [An Open, Sustainable, and Assertive Trade Policy] reflects the key role that the WTO continues to play in EU trade policy. (...) It also stresses the importance for the European Union of taking a leading role in the development of trade rules in the WTO on, for example, fossil fuel subsidies and digital trade, to advance its green and digital transitions.