Austria, Denmark, Luxembourg, Portugal and Spain have issued a joint letter calling on the European Union to clearly prioritise renewable energies under an EU-led project aiming to accelerate hydrogen deployment, research and infrastructure.

The European Union launched on Thursday (17 December) a hydrogen “project of common European interest”, or IPCEI, with 23 European countries signing a manifesto paving the way for a cleaner hydrogen value chain.

German Economy Minister Peter Altmaier chaired Thursday’s launch event, which saw Norway and 22 other European countries signing a declaration of intent, or manifesto, in support of the initiative.

However, the five EU countries see the move with scepticism, warning the initiative must not be used as a backdoor to finance fossil gas infrastructure.

“Spain bets exclusively on renewable hydrogen, and considers that EU funds and regulatory support to renewable hydrogen should be prioritised before low-carbon hydrogen, produced with natural gas (blue hydrogen) or nuclear,” an EU source told EURACTIV.

The European Commission sees hydrogen as “a vital missing piece of the puzzle” to achieve deeper decarbonisation in industries like steelmaking and chemicals, which cannot be electrified entirely.

“Clean hydrogen will help our European industries decarbonise, be resilient and stay globally competitive,” said Thierry Breton, the EU’s internal market Commissioner, who was present at the launch event.

Hydrogen: “renewable” or “low-carbon”?

EU member states have squabbled over the past weeks about which type of hydrogen to support, with two opposing camps facing off: those backing green hydrogen produced exclusively from renewable electricity, and those in favour of a broader “low-carbon” definition, which also includes nuclear power and decarbonised gases.

Supporters of “blue” hydrogen say natural gas will be needed in the short term to ramp up production volumes and grow the EU’s hydrogen market, which is currently tiny.

Margrethe Vestager, the EU’s competition chief, sought to clarify the Commission’s approach, saying regulatory support will be targeted only for projects that can make a significant contribution to the EU’s long-term climate goals.

“Developing technologies for low-carbon and, in particular, green hydrogen, and building the necessary infrastructure for its deployment, will take us one step closer to making Europe the first climate-neutral continent by 2050,” she said in a speech at the launch event.

IPCEIs were set up in 2014 and allow EU member states to subsidise high-risk cross-border research and innovation, as well as infrastructure projects, without having to observe the EU’s normally strict state aid rules.

“No member state or business can do this alone,” Vestager stressed. “That’s why it makes sense for European governments to come together to support such important projects of common European interest, if the market alone would not take the risk. And it is why we have put special state aid rules in place to smooth the way.”

But the five EU countries are worried that the new hydrogen IPCEI will be used to support “low-carbon” hydrogen made from natural gas or nuclear power.

They say they signed up to the manifesto – but only “with the understanding that this initiative should exclusively refer to hydrogen from renewable energy sources since we consider this technology as the only long-term sustainable solution to achieve climate neutrality by 2050.”

“Projects within an IPCEI must respect the principle of the phasing out of environmental harmful subsidies,” the signatories of the letter wrote. “Therefore, an IPCEI on hydrogen must only be eligible when produced from renewable sources, where a clear market gap is identified,” the letter said.

The letter was signed by the environment ministers of Austria (Leonore Gewessler), Denmark (Dan Jørgensen), Luxembourg (Claude Turmes), Portugal (João Pedro Matos Fernandes) and Spain (Teresa Ribera Rodríguez).

They were supported in their move by environmental groups, which have expressed doubts about the EU’s hydrogen manifesto.

“This initiative must not become a cover to throw public money into fossil fuels,” said Rita Tedesco from ECOS, a pressure group specialised in green standards.

“Any public support must only be directed to hydrogen produced 100% from renewable sources. The Commission needs to watch this closely, making sure that the renewable origin of publicly-backed hydrogen is certified through a credible certification system.”

“All other types of hydrogen must be excluded from public support, including so-called ‘low-carbon hydrogen’, which increases the risk of greenwashing and would only bring fossil fuels through the backdoor’,” Tedesco said.

[Edited by Zoran Radosavljevic]

President of the European Council Charles Michel and President of the European Commission Ursula von der Leyen have sent congratulations to Party General Secretary and State President Nguyễn Phú Trọng and Prime Minister Nguyễn Xuân Phúc on the 30th fou…

Trung Nguyên coffee company is one among many to be benefitting from the newly ratified EU-Việt Nam Free Trade Agreement. — VNA/VNS Photo Danh Lam

HÀ NỘI — President of the European Council Charles Michel and President of the European Commission Ursula von der Leyen have sent congratulations to Party General Secretary and State President Nguyễn Phú Trọng and Prime Minister Nguyễn Xuân Phúc on the 30th founding anniversary of Việt Nam-EU diplomatic ties.

In their letters, the two EU leaders applauded Việt Nam’s swift and decisive actions to contain the spread of COVID-19, successfully curbing the outbreak and minimising deaths. They also offered condolences to the families of victims in floods in central Việt Nam in October.

They said that over the last 30 years, Việt Nam had witnessed many developments, from the implementation of the đổi mới (renewal) policy; the normalisation of relations with the EU, the US, and China; and its joining ASEAN to extensive structural reforms and the strategy for socio-economic development via global integration.

These factors had helped Việt Nam become one of the fastest-growing economies in the world, according to them.

Given the settlement of important global challenges requiring the participation of both Europe and Asia, the officials congratulated Việt Nam on its constructive role as Chair of ASEAN in 2020.

The EU pledges to intensify EU-ASEAN co-operation and welcomes the official establishment of the EU-ASEAN strategic partnership at the ministerial meeting on December 1.

Việt Nam was now an active member in the world, ready to assume growing international obligations, and share the EU’s strong commitment to multilateralism, they said, adding that the pandemic was a global crisis that needed international solidarity and co-operation.

In their letters, the Presidents of the European Council and Commission said over the last three decades, the EU-Việt Nam partnership had developed unceasingly, supported by agreements covering different domains, from politics, trade, and defence to anti-illegal logging.

By building a stronger partnership, the EU and Việt Nam could handle global challenges, and as a long-standing friend of Việt Nam, the EU would welcome the two sides discussing difficult issues in an open, straightforward and constructive manner, they affirmed.

The officials noted the EU-Việt Nam partnership was first and foremost for the sake of the Vietnamese and European people, and development co-operation would remain an important element in the EU’s commitment to Việt Nam.

They expressed the willingness to enhance ties with Việt Nam in dealing with major global challenges, contributing to peace and development in the world.

Michel and Leyen also hope to visit Việt Nam at an appropriate time.

Thriving relations

Josep Borrell, High Representative of the EU for Foreign Affairs and Security Policy, said in a message on the occasion of the 30th anniversary of diplomatic relations between the two sides that Việt Nam had experienced fruitful co-operation in various sectors in the past 30 years.

Việt Nam is among countries in ASEAN and the Asia-Pacific to have developed comprehensive relations with the EU. He described the signing of the EU-Việt Nam Free Trade Agreement (EVFTA) as an extraordinary step in bilateral ties.

The trade pact was the first comprehensive and ambitious trade and investment agreement the EU has concluded with a developing country in Asia, said Borrell, who is Vice President of the European Commission.

The EU is Việt Nam’s second-largest export market, accounting for 17 per cent of its total exports. Since Việt Nam’s exports to the EU make up just 2 per cent of the bloc’s total imports, there is huge space for the country to boost shipments. Two-way trade has shot up over recent years, with Vietnamese exports primarily being furniture, telephones, machinery, and footwear, while the EU’s exports are mainly aircraft, machinery, pharmaceuticals, and electrical equipment.

The EVFTA came into force at a time with the global economy battered by the COVID-19 pandemic, and has created motivation for trade in goods between the two and boosted the confidence of EU and other investors seeking to develop Việt Nam-EU trade links.

Despite the pandemic, the implementation of the deal has already shown robust signs, with Việt Nam’s exports to the EU in August and September topping US$3.25 billion and $3.1 billion, respectively, year-on-year increases of 4 per cent and 9.5 per cent.

The EVFTA is expected to bring more practical benefits to businesses and people of both sides in the medium and long terms. It is projected to help Việt Nam increase its GDP by 4.6 per cent and exports to the EU by 42.7 per cent by 2025. Meanwhile, the EU’s GDP will rise by an additional $29.5 billion and shipments will increase by 29 per cent by 2035.

Borrell also hailed Việt Nam as an attractive partner of the EU, saying the forums the country had engaged in are vivid illustrations of its strong commitment to multilateralism and a rules-based international order.

At the 53rd ASEAN Foreign Ministers’ Meeting on September 12, Deputy Prime Minister and Foreign Minister Phạm Bình Minh affirmed that in its role as ASEAN Chair 2020, Việt Nam supported efforts to deepen ASEAN-EU relations towards upgrading ties to a strategic partnership, and eventually, Việt Nam’s efforts paid off, with ASEAN and the EU announcing the official upgrade of ties to the strategic partnership level on December 1.

The EVFTA could be used as a model if the EU was to decide to sign free trade deals with ASEAN or other member states.

Regarding peace and security, Việt Nam and the EU have signed a Framework Participation Agreement (FPA), paving the way for Việt Nam to join the crisis management activities of the EU. The first of its kind the EU has inked with an ASEAN country, the agreement will help contribute to the EU’s activities in global peace and security.— VNS

BRUSSELS — The European Union’s chief negotiator said Friday that the bloc and the United Kingdom are starting a “last attempt” to clinch a post-Brexit trade deal, with EU fishing rights in British waters the most notable remaining obstacle to avoid a chaotic and costly changeover on New Year.

Michel Barnier told the EU parliament he “can’t say what will come out during this home straight of the negotiations,” which have already come a long way in nine months of talks. He called it “a very serious and sombre situation” with the jobs of hundreds of thousands of people at stake.

The EU parliament has set a Sunday night deadline on the talks since it still will have to approve any deal ahead of Jan. 1, when a transition period following the Jan. 31 departure of Britain from the bloc will expire.

“It’s the moment of truth,” said Barnier. “We have very little time remaining — just a few hours.”

The Associated Press

• EIB lends EUR 100 million to Dutch public water company PWN in support of its climate adaptation strategy, to safeguard and futureproof Noord-Holland’s drinking water supply.
• Project will see more intensive source and nature protection, investments in purification and partial replacement of distribution networks to make them more climate resilient.

The European Investment Bank (EIB) has signed a EUR 100 million, 20-year loan agreement with PWN, the company that manages the drinking water supply in most of the province of Noord-Holland in The Netherlands. The loan supports the necessary investments to maintain the high quality of drinking water that PWN provides, from source to tap. The investments are needed to anticipate the effects of climate change on PWN’s business model. The more frequent and prolonged drought periods that are expected in the near future, will impact drinking water production and distribution. Apart from this, the population of the province of Noord-Holland is growing, and drinking water demand with it.

Sustainable drinking water supply

PWN aims to produce CO₂-neutral drinking water by 2050, meaning it wants to be a completely emission-free and circular organisation by that time, already halving its carbon footprint by 2030. The highest priority remains the sustainable supply of drinking water, for which the protection of its main freshwater sources and nature reserves is very important. The EIB’s financing will support PWN in implementing more climate-friendly ways to filter drinking water, substituting part of its distribution network with more heat- and draught-resistant pipes, as well as measures to better manage supply among different water sources and storage areas.

“The EIB has been supporting drinking water production companies in The Netherlands for quite some time now.” said EIB Vice-President Christian Thomsen. “People in the country are becoming more and more aware of the risks The Netherlands are running in the face of climate change. Apart from changing our ways when it comes to emissions, we need to adapt to the changing situation as well, and the EIB is very glad to support PWN in doing that.”

“The world around us is changing. PWN has to anticipate to this, so that our client will always – now, and in the future – dispose of reliable drinking water. That is why we welcome the willingness of the EIB to lend to PWN. This way, we jointly work for the future of drinking water for our citizens.” added Ria Doedel, General Director of PWN.

Technically speaking, PWN’s investments focus on the rehabilitation and upgrade of production installations, replacement of distribution piping, water storage facilities, reservoirs, pumping stations and sustainable management of coastal dunes in a region expected to be affected by climate change. This is the fourth operation with PWN funded by the EIB since 1998, with the last one signed in 2016. 

PWN Waterleidingbedrijf Noord-Holland N.V. is a publicly owned company whose sole shareholder is the Province of Noord-Holland. PWN supplies drinking water to 1.7m customers through a pipeline network of 10,342km with 811,770 connections, which represents about 10% of the Dutch market, making it the fourth largest drinking water company in The Netherlands by number of connections. It supplies drinking water and manages the dunes in the province of North Holland. The water is treated at plants in Andijk, Bergen, Heemskerk and Wijk aan Zee. PWN is appointed by the province to manage more than 7,500 hectares of nature reserves between Zandvoort and Bergen. The dunes in the Zuid-Kennemerland National Park and the North Holland Dune Reserve are protected as Natura 2000 sites. These areas are managed in accordance with the Barometer Duurzaam Terreinbeheer certification system for sustainable landscape management (Gold standard) and attract approximately six million visitors a year. See also www.pwn.nl.

EU Commissioner for Values: EU money is meant to help the Roma too, data collection is important so we aren’t flying blind.

European Commission Vice-President for Values and Transparency Věra Jourová (left) and Helena Dalli, European Commissioner for Equality (right), held a press conference on 7 October 2020 about the EU Roma strategic framework for equality, inclusion and participation for 2020-2030. (PHOTO: European Commission)

The European Union will be financially supporting the fight against socially excluded localities during the next budget period, and one target group for that financing is meant to be Romani people. The EU wants to support their economic and social integration. 

European Commissioner for Values and Transparency Věra Jourová has delivered that message in an interview for ROMEA TV. “We want to continue financing projects, but in the past that aid did not always make its way to the places where it is needed. Impoverished people live in areas where they have less of a chance of applying themseves on the labor market, the children living in such areas have limited opportunities, from the very beginning of their lives, to get a good-quality job when they grow up and to enjoy a better quality of life. For that reason, we want this financing to target the places that need it,” she said in an interview with journalist and Romani community member Richard Samko.    

A European Social Fund document even expressly mentions Romani people, but this financial aid is not exclusively intended just for them. Just as under the previous European Commission strategies for such investment, impoverished people will be targeted generally during the next budget period.  

Romani people are given as an example of a group endangered by poverty toward whom the aid is meant to be targeted. “This is meant to assist people endangered by social exclusion, such as Romani people. We have never said, and we are not saying now, that this money is meant to be exclusively aimed at Romani people. We are especially concerned about the children whom we would like to see enjoy a better quality of life than their parents have experienced, and we want to help achieve that with this money. Romani people have been named as one of the groups who should be supported,” the Commissioner said.   

According to Jourová, the anonymous collection of data disaggregated by ethnicity, which some Czech ministries do not want to undertake, is also important. “There is no problem with collecting such data if it is anonymized. It should never appear anywhere as a matter of record that Mr XY declares himself of Romani ethnicity, that is a general rule. However, collecting data for the purposes of designing projects and monitoring where the money has gone is absolutely in order. We cannot finance something absolutely blindly and say we hope the money will go where it is needed, this can’t be done that way,” she warned. 

The financing will make its way to chosen projects through the Education Ministry and the Labor and Social Affairs Ministry. Those ministries are tasked with administering and distributing this European funding through their two biggest and most crucial programs.

the Commissioner explained

During the previous funding period, the EU invested about EUR 2.5 billion into addressing the issue of socially excluded localities. Despite that, today there are more impoverished neighborhoods in the Czech Republic than were first mentioned in a report by the sociologist Ivan Gabal in 2006.

The Commissioner said

"That money was not exactly targeted. For that reason, we have made our strategy more concrete so that it is clear our intention is to support people endangered by poverty with an emphasis on education and job creation. We also want mechanisms that facilitate easier access to this money. To speak a hard truth, bureaucratic obstacles force project managers to consume these resources themselves, and that means not all of this money goes toward the purpose of the spending,".

The Guidelines are intended to help firms identify, address and monitor the risks arising from cloud outsourcing arrangements. They provide guidance to firms on:

• The risk assessment and due diligence that they should undertake on their CSPs;
• The governance, organisational and control frameworks that they should put in place to monitor the performance of their CSPs and how to exit their cloud outsourcing arrangements without undue disruption to their business;
• The contractual elements that their cloud outsourcing agreement should include; and
• The information to be notified to competent authorities.

In addition, the Guidelines provide guidance to competent authorities on the supervision of cloud outsourcing arrangements, with a view to fostering a convergent approach in the EU.

ESMA conducted a public consultation on these Guidelines to gather the views of relevant stakeholders. The report published today contains a feedback statement summarising the responses received and highlighting the amendments and clarifications introduced in the final guidelines to take into account the feedback received during this consultation.

Next steps

The guidelines will be translated into the official EU languages and published on ESMA’s website. The publication of the translations in all official languages of the EU will trigger a two-month period during which NCAs must notify ESMA whether they comply or intend to comply with the guidelines.