The EU is taking steps to reduce CO2 emissions of cars and vans. Under the revised rules, there will be stricter CO2 emission standards for new passenger cars and light commercial vehicles. A provisional agreement reached by the Presidency and Parliament representatives on 17 December was endorsed by member states today.

The new rules will ensure that from 2030 onwards new cars will emit on average 37.5% less CO2 and new vans will emit on average 31% less CO2 compared to 2021 levels. Between 2025 and 2029, both cars and vans will be required to emit 15% less CO2.

Today’s agreement gives the go-ahead to decarbonize and modernize Europe’s road transport. It represents an integrated approach to the transition towards low emission mobility, and supports the long-term competitiveness of the sector, including by facilitating innovation in clean technologies, such as batteries and recharging infrastructure. It makes sure that cars will emit on average 37.5% less CO2 in 2030 compared to the current emission standard limits and is therefore an important step to achieve our climate goals. In addition, we are improving the test procedures with stricter rules to ensure a reliable representation of the real world emissions.

Graţiela Leocadia Gavrilescu, Romanian Vice Prime Minister and Minister of the Environment

The specific elements of the agreement

Average CO2 emissions of new cars registered in the EU will have to be 15% lower in 2025 and 37.5% lower in 2030, compared to the emission limits valid in 2021. The CO2 emissions of new vans will need to be 15% lower in 2025 and 31% lower in 2030. These are EU wide fleet targets. The CO2 reduction effort will be distributed among manufacturers on the basis of the average mass of their vehicle fleet.

A review clause provides for a possible revision of the 2030 targets and for the introduction of binding reduction targets for 2035 and 2040 onwards.

The Parliament and the Council agreed on a mechanism to encourage the sale of more zero- and low-emission vehicles such as fully electric cars or plug-in hybrid vehicles based on the approach proposed by the Commission in its original proposal. If a manufacturer meets certain benchmarks, it will be rewarded with less strict CO2 targets. The benchmark levels for 2025 will be 15% for cars and vans, and for 2030 35% for cars and 30 % for vans.

The two specific incentives for zero-and low-emission passenger cars agreed in the Council general approach were maintained with some adjustments:

• as concerns the better weighting of low-emission vehicles a factor of 0.7 was agreed;
• as concerns the incentive for manufacturers to sell zero- and low-emission cars in markets with a low market penetration of these vehicles, a multiplier of 1.85 was agreed. The eligibility criteria of a market share of zero and low-emission cars below 60% of the EU average was maintained but with a base year of 2017. A second eligibility criteria was introduced, namely a threshold of maximum 1000 newly registered vehicles in 2017 in the member state concerned. Finally, a cap of 5% will apply for the use of the scheme, so that if the share of zero- and low-emission vehicles in a member state exceeds 5% of newly registered cars, the incentive will no longer apply to sales into that member state.

For vans, the Parliament and Council agreed to leave the Commission proposal unchanged in respect to incentives for zero- and low-emission vehicles.

The niche derogation from the targets for those vehicle manufacturers which sell relatively few vehicles in Europe will be continued until 2028.

The effects of the transition of the automotive sector on in particular employment will be addressed via a provision on a socially fair and just transition. The Commission is to consider the possibility of allocating revenue from the excess premiums to a dedicated fund or relevant programmes aimed at ensuring a just transition and if appropriate submit a legislative proposal by 2027.

The Parliament and the Council have agreed on new rules that aim to ensure the robustness and representativeness of emissions data reported.

Firstly, stricter rules have been agreed for the transition from the old NEDC test procedure to the more accurate WLTP test procedure as the basis for calculating the specific emission targets for manufacturers.

Secondly, there will be an increased focus on monitoring “real-drive emissions”. The Commission will monitor the real world representativeness of the CO2 emission values based on data from the fuel consumption meters installed in new cars and vans. In order to prevent an increase in the emissions gap, the Commission is to assess the feasibility of developing a mechanism for the adjustment of the manufacturers’ specific targets as of 2030 and if appropriate submit a legislative proposal to this effect. The Commission must also as part of the review in 2023 assess the feasibility of developing real-world emission test procedures.

Thirdly, there are also specific provisions on in-service conformity testing and on detecting strategies which may artificially improve the CO2 performance of cars and vans.

In addition, the Commission will evaluate the possibility of developing a common EU methodology for the assessment and reporting of lifecycle emissions (life-cycle analysis) of vehicles and, where appropriate, prepare follow-up measures including legislative proposals.

The Commission will review the existing European Directive on car labelling by 2020 in order to improve information to consumers, including evaluating options for introducing a fuel economy and CO2 emission label for vans.

Background and next steps 

The Commission presented the proposal for a new regulation in November 2017 as part of the third clean mobility package. The European Parliament adopted its position on 3 October. The Council agreed its position (general approach) on 9 October.

Negotiations with the European Parliament started on 10 October and ended in a provisional agreement on 17 December, which was confirmed by EU ambassadors of the member states today.

On the European Parliament’s side, the ENVI Committee is scheduled to endorse the provisional agreement on 21 January. The formal adoption of the new rules will happen before the summer.

The overall aim of the proposal is to contribute to achieving the goals of the Paris Agreement and to reach the EU wide 30% reduction target by 2030 compared to 2005 of the non ETS (Emissions Trading System) sector set by the European Commission, which is translated into national targets in the Effort Sharing Regulation.

The proposed measures and targets are based on the 2030 climate and energy framework and the energy union strategy, which aims at a reduction in transport emissions and energy consumption. The reduced need for fossil fuels will also improve the security of energy supply in the EU and reduce our dependence on energy imports from third countries.

Download as pdf

The European Commission has therefore decided today to re-introduce import duties that will be steadily reduced over a period of three years.

According to the Commission’s decision, to be published in tomorrow’s Official Journal, as of 18 January the European Union will reinstate the normal customs duty on this product of €175 per tonne in year one, progressively reducing it to €150 per tonne in year two, and €125 per tonne in year three.

During the investigation launched in March 2018, the Commission found that imports of Indica rice from both countries combined have increased by 89% in the past five rice-growing seasons. At the same time, the investigation found that the prices were substantially lower than those on the EU market and had actually decreased over the same period. This surge in low-price imports has caused serious difficulties for EU rice producers to the extent that their market share in the EU dropped substantially from 61% to 29%.

Cambodia and Myanmar are beneficiaries of the EU’s Everything But Arms (EBA) trade scheme, which unilaterally grants duty-and quota-free access to the world’s least developed countries (apart from arms and ammunition). This is one pillar of the EU’s Generalised Scheme of Preferences (GSP) tariff-reduction scheme for developing countries. Today’s action is being taken using the safeguards mechanism of the GSP Regulation.

Background

The initial request for trade safeguards on rice imports was tabled by the Italian government in February 2018 and supported by all other EU rice growing Member States (Spain, France, Portugal, Greece, Hungary, Romania and Bulgaria). The Commission opened a formal investigation on 16 March 2018. The measures will be in place for three years.

The decision will be published in the EU’s Official Journal on 17 January and will enter into force the following day.

For More Information

EU trade relation with Cambodia

EU trade relations with Myanmar

Generalised scheme of preferences

The EU has come a step closer to adopting new rules that will boost the export of generic medicines and biosimilar products to third countries. EU ambassadors meeting today in Coreper agreed on the Council’s position on a draft regulation which introduces an exception for manufacturing for export purposes (manufacturing waiver) to the protection granted to an original medicine by a supplementary protection certificate (SPC).

Thanks to the waiver, EU-based makers of generics and biosimilars will be entitled to manufacture a generic or biosimilar version of an SPC-protected medicine during the term of the SPC if done exclusively for the purpose of exporting to a non-EU market where protection has expired or never existed.

The draft regulation is expected to remove the competitive disadvantages faced by EU-based manufacturers of generics and biosimilars vis-à-vis manufacturers established outside the EU in global markets, but also in day-1 EU markets by building up production capacity.

The exception will operate only where :

• generics or biosimilars are produced exclusively for export to third countries where protection of the original medicine does not exist or has expired;
• the maker has provided the information required by the regulation to both the authorities of the member state of production and to the holder of the SPC at least three months in advance;
• the maker has duly informed all those involved in the commercialisation of the product covered by the exception that the product can be put on the market only outside the EU;
• the maker has affixed to the packaging of the product the specific logo provided for by the regulation indicating clearly that it is only for export.

Until a set date (three years from the entry into force of the regulation), the regulation will affect only SPCs that are applied for on or after the date of entry into force of the regulation. From then on , the regulation will also affect SPCs applied for before the entry into force of the regulation, but which have become effective after the entry into force of the regulation.

Next steps

Once the European Parliament agrees on a negotiating mandate, the Romanian presidency will start negotiations with the European Parliament with the aim of adopting the regulation at first reading.

Background

The EU harmonised SPC system was introduced in 1992. It sought to compensate for the loss of effective patent protection due to the time required in order to obtain marketing authorisation (including research and clinical trials).

Global demand for medicines has increased massively (reaching €1.1 trillion in 2017). Alongside this, there is a shift towards an ever-greater market share for generics and biosimilars. Assuming an annual growth rate of 6.9%, by 2020 generics and biosimilars will represent 80% of all medicines by volume, and about 28% by value.

With the expiry of industrial property protection, over €90 billion of the first generation of blockbuster biologics will become open to biosimilar competition by 2020.

The draft regulation should contribute to Europe’s competitiveness as a hub for pharmaceutical R&D and manufacturing. It will help new pharmaceutical companies start up and scale up in high growth areas, and is projected to generate, over the next 10 years, additional net annual export sales of well in excess of EUR 1 billion, which could translate into 20 000 to 25 000 new jobs over that period.

Download as pdf

EU increases its humanitarian assistance – record budget adopted for 2019

As more and more people face humanitarian crises worldwide, the EU has adopted its highest ever initial annual humanitarian budget of €1.6 billion for 2019. From long-lasting conflicts in the Middle East and Africa, to the growing impact of climate change worldwide, humanitarian crises are worsening and conflict threatens aid delivery to those most in need. “With this new budget, the EU remains a leading humanitarian donor in the face of crises such as Syria and Yemen. Humanitarian aid alone cannot solve all problems but we must do everything in our power to help the most vulnerable. This is our humanitarian duty. We must also think about the impact of these many crises on children, on the next generation. That’s why a record 10% of the new budget, 10 times more than in 2015, is dedicated to education in emergencies, so we can give children the tools to build a better future,” said Christos Stylianides, Commissioner for Humanitarian Aid and Crisis Management. The biggest bulk of the budget will address the crisis in Syria, refugees in neighbouring countries and the extremely critical situation in Yemen. Further funding will address needs in Africa, Latin America, Asia as well as in Ukraine. The Commission closely monitors the use of EU funds via its global network of humanitarian experts and has strict rules in place to ensure funding is well spent.  The full press release is available here. (For more information: Carlos Martin Ruiz De Gordejuela – Tel.: +32 229 65322; Daniel Puglisi – Tel.: +32 229 69140)

Faster, more comfortable commutes in Budapest thanks to Cohesion Policy funds

Passengers will soon enjoy better travel conditions from and to the Hungarian capital thanks to a €166 million EU investment. This will allow the purchase of 11 high capacity double decker carriages to run on railway lines 30, 30a, 80 and 100. Commissioner for Regional policy Corina Creţu said: “Cohesion Policy is investing to make railways services in Hungary faster and more reliable, while significantly improving passenger comfort. This is how the EU is concretely changing our daily lives, for the better.” The trains, with a 600-seat capacity, will have dedicated space for wheelchairs and bicycles. They will be equipped with on-board Wi-Fi, audio-visual systems, security cameras and power sockets. (For more information: Christian Spahr – Tel.: +32 2 295 00 55; Sophie Dupin de Saint-Cyr – Tel.: +32 229 56169)

Commission welcomes agreement on stricter rules on European political party funding 

Today, the European Parliament and the Member States reached provisional agreement to tighten the rules on European political party funding.  The amendment to the Regulation on funding of European political parties was part of a series of measures proposed by President Juncker in his 2018 State of the Union speech to secure free and fair European elections. First Vice-President Frans Timmermans said: “This agreement is good news. It will contribute to bolstering our democratic resilience just in time for the European elections” Commissioner for Justice, Consumers and Gender Equality, Věra Jourová added: “We have seen how personal data can be misused for manipulation in election times. Strong data protection rules are crucial to protect the upcoming European elections. We expect European political parties to fully respect them, so that Europeans can cast their vote being fully and fairly informed during the campaign.” The amendment will make it possible to impose financial sanctions for breaching data protection rules in order to deliberately influence the outcome of the European elections. Sanctions would amount to 5% of the annual budget of the European political party or foundation concerned. The sanction will be enforced by the Authority for European political parties and European political foundations. In addition, those found to be in breach would not be able to apply for funding from the general budget of the European Union in the year in which the sanction is imposed. The text must now be quickly formally adopted by the European Parliament and the Council of the EU in the coming weeks, so that the rules are in place for the 2019 European elections. All information on the election package is available here. (For more information: Christian Wigand – Tel.: +32 229 62253; Mélanie Voin – Tel.:+32 229 58659)

Eurostat: Commerce international de services: l’excédent de l’UE en hausse à plus de 190 milliards d’euros en 2017, les États-Unis restent le 1er partenaire des exportations et importations

L’excédent du commerce international de services de l’Union européenne (UE), qui avait diminué entre 2013 et 2016, a augmenté pour s’établir à 191,8 milliards d’euros en 2017. Cela s’explique par la hausse de 5% des exportations de services de l’UE vers le reste du monde, passant de 870,5 milliards d’euros en 2016 à 912,4 milliards en 2017, tandis que les importations de l’UE ont diminué de 2%, passant de 732,3 milliards à 720,7 milliards. Un communiqué de presse Eurostat est à votre disposition en ligne. (Pour plus d’informations: Daniel Rosario – Tél.: +32 229 56185; Kinga Malinowska – Tél.: +32 229 51383)

ANNOUNCEMENTS

Le commissaire Moscovici à Athènes devant la Chambre de Commerce Franco-Hellénique

M. Pierre Moscovici, commissaire chargé des Affaires économiques et financières, de la Fiscalité et des Douanes, sera à Athènes aujourd’hui pour prononcer un discours devant la Chambre de Commerce Franco-Hellénique. A l’occasion de cette visite, il s’entretiendra avec les autorités grecques des perspectives économiques et de la mise en œuvre des engagements pris à la conclusion du programme de soutien à la stabilité l’été dernier. Le commissaire Moscovici rencontrera le président Prokópis Pavlópoulos; le Premier ministre Alexis Tsipras; le ministre des Finances Euclide Tsakalotos, ainsi que les ministres de l’Économie et du Développement, du Travail et de l’Énergie. Il rencontrera également des banquiers et des représentants du secteur privé. (Pour plus d’informations: Annika Breidthardt – Tel.: +32 229 56153; Enda McNamara – Tel.: +32 229 64976)

Commissioner Navracsics travels to The Netherlands for European Music Awards Night

This evening, the twelve winners of the first Music Moves Europe Talent Awards will receive their trophies at a ceremony at the Eurosonic Noorderslag festival in Groningen, The Netherlands. This new EU prize for popular and contemporary music, co-funded by the Creative Europe programme, succeeds the European Border Breakers Awards which ran from 2004 to 2017. It recognises the success of emerging artists who have reached audiences outside their own countries. Ahead of the ceremonies, Commissioner Tibor Navracsics, in charge of Education, Culture, Youth and Sport,said: “Tonight in Groningen we are celebrating the European sounds of today and tomorrow. This year, the talent awards have become part of a much larger EU music initiative called Music Moves Europe – an important step as we seek to provide special support to the music sector in the years ahead. I am also pleased to be presenting the Take a Stand Award that recognises the power of music and the arts to promote mutual understanding, tolerance and peace. Congratulations to all the winners on Music Awards Night!” The twelve winners of the Music Moves Europe Talent Awards were announced in November. An international jury selected them in six categories – pop, rock, electronic, R&B/urban, hip hop/rap and singer/songwriter. During tonight’s award ceremony, which will be co-hosted by TV personality and musician Jools Holland and Dutch presenter Eric Corton, a number of bands including Albin Lee Meldau, AVEC or blackwave, will perform live. The ceremony takes place back-to-back with the 10th European Festival Awards Show, which Commissioner Navracsics will also attend. (For more information: Nathalie Vandystadt – Tel.: +32 229 67083; Joseph Waldstein – Tel.: +32 229 56184)

Commissioners Vytenis Andriukaitis and Phil Hogan attending the International Green Week in Berlin

Commissioners Vytenis Andriukaitis and Phil Hogan, respectively in charge of Health and Food safety and of Agriculture, will both be attending the International Green Week in Berlin which gathers exhibitors from the food, agriculture and gardening sectors on 17-19 January. On Thursday, Commissioner Andriukaitis will start his visit in Germany by holding a citizen dialogue in Potsdam on the theme of health, entitled: “Where we stand today – and how to improve Europe’s health status”. Meanwhile, Commissioner Hogan will address the Committee on Food and Agriculture at the German Bundestag. Later on that day, at 16:00 CET, both Commissioners will attend the Green Week’s premises before the event’s official opening. On Friday and Saturday, both Commissioners Andriukaitis and Hogan join the 11^th Global Forum for Food and Agriculture (GFFA) organised in the context of the Green Week. On Friday, Commissioner Hogan will participate in the EU High-Level Panel “Innovation and Digitalisation of Agriculture”. He will also speak on a panel entitled “EU Africa Alliance in Agriculture – the way forward”, alongside African Union Agriculture Commissioner Josepha Sacko and the Taskforce Rural Africa Chairman Tom Arnold. On Saturday, Commissioner Andriukaitis will also participate in a conference on “Western Balkans: Potentials of Agriculture Trade”. Also, whilst in Berlin, Commissioner Hogan will meet Ms Angela Merkel, Federal Chancellor of Germany, the Australian agriculture Minister David Littleproud and Japanese Agriculture Minister Takamori Yoshikawa. Ahead of his visit, Commissioner Andriukaitis said: “I look forward to visiting this important event and to discussing with ministers from the EU and third-countries topics which are high on the Commission’s agenda, notably African swine fever”. Commissioner Hogan added: “Berlin Green Week and the Global Forum for Food and Agriculture are major events in the global agricultural policy calendar.  This week’s events provide a big opportunity to increase our cooperation at a global level, for example with the Taskforce Rural Africa and by sharing ideas on how to mainstream digitalisation in the agriculture sector.” The European Commission is present throughout the duration of the International Green Week 2019 with a stand on the theme of sustainable food for a healthy lifestyle. Visitors will receive information about the Common Agricultural Policy, digital innovations in agriculture and rural areas, the EU’s work on food safety and nutrition labelling and research, and measures to reduce food waste, as well as AMR. (For more information: Anca Paduraru – Tel: +32 229 91269; Daniel Rosario – Tel +32 229 56185; Aikaterini Apostola – Tel.: +32 229 87624; Clémence Robin – Tel.: +32 229 52509)

Upcoming events of the European Commission (ex-Top News)

ESMA’s report provides an overview on the establishment and application of AMPs in the EU, with particular reference to the AMPs established on the basis of the Market Abuse Directive and which were still in force when MAR became applicable, and the AMPs which have been established under MAR.

The report includes ESMA’s views on the application of AMPs together with recommendations to National Competent Authorities.

Background

MAR’s purpose is to guarantee the integrity of European financial markets and promote investor confidence. The concept of market abuse typically consists of insider dealing, unlawful disclosure of inside information, and market manipulation.

However, some exceptions apply, for example, MAR provides a defence against market manipulation if the transaction was legitimate and carried out in accordance with an AMP and MAR describes the non-exhaustive factors that a competent authority should take into account before deciding whether or not to accept a market practice.