Daily Briefs


Photo : Bernd Wuestneck/AP/Euronews

09 February 2023, Thursday | NIAS Europe Daily Brief #432

In Brief: European Commission plans to collectively withdraw from Energy Charter Treaty

IN BRIEF
By Madhura S Mahesh and Femi Francis

REGIONAL 
ECJ excludes genetic modification technique from the EUs 2001 GMO directive 
On 07 February, the European Court of Justice ruled that in-vitro random mutagenesis, a type of genetic modification, will not come under the EU’s 2001 GMO directive. The Court closed a 2015 case lodged by green campaign groups which urged the court to provide clarification if methods of mutagenesis will be put under the 2001 directive. Random mutagenesis is a method of genetic modification where spontaneous genetic mutations are induced by agents in living organisms. This is done in two ways, first in-vitro where the plant cells are targeted to modify the genes and then artificially produce a whole plant. The second is in-vivo where the modification is done to the whale plant or a part of the plant. A separate 2018 EU court ruling exempted in-vivo random mutagenesis from the directive.  The Court said in its ruling that the type of gene modification has “conventionally been used in a number of in-vivo applications and has a long safety record with regard to those applications.” The ruling received praise from the EU farmer’s associations but received criticisms by the green groups who said that this will lead to “unlabelled and un-assessed GMOs in farmers’ fields and on European citizens’ plates.” This ruling comes as the European Commission is debating whether to reduce EU rules for new genetic techniques. The green groups with the support of 420,000 EU citizens and green and socialist MEP’s presented a petition to the Commission demanding that all GMOs should come under the 2001 directive. (Natasha Foote “EU court exempts gene modification technique from stricter rules,” EURACTIV, 08 February 2023; Paula Andrés “EU citizens rally against gene editing deregulation ahead of EU proposal,” EURACTIV, 08 February 2023)

France and Germany are concerned over US's green technology subsidies
On 08 February, France and Germany expressed their concerns over US Green technologies subsidies under the Inflation Reduction Act. They state that the act sheltered US companies from inflation and subsidized investment in green tech would undermine EU’s competitiveness in the American market. Germany and France agreed that there needs to be some transparency so that the EU can match them is needed. They called for Trade and Technology Council to develop a common standard for green goods and create critical minerals to reduce dependence on China. Economic Minister Le Marie French said: “You cannot have any fair competition if there is not full transparency on the level of public subsidies and public tax credits that are granted to private companies." (Christian Kraemer, David Lawder, “
France, Germany protest U.S. green subsidies on Washington trip,” Reuters, 08 February 2023)

European Contraception Policy Atlas report highlights unequal access to contraceptives in Europe    
On 08 February, the European Contraception Policy Atlas released a report which highlighted the lack of access to birth control and other contraceptives across Europe. European Parliamentary Forum for sexual and reproductive rights (EPF) Executive Director Neil Datta said that the report was a survey of 46 countries where it found that only 57 per cent of women use modern contraceptives. The report outlined that within EU member countries, there are notable differences regarding access to contraceptives, counselling and online information. The report outlines that the use of contraceptives is the highest in Belgium and France and the lowest in Hungary and Poland. It also said that more than half of the surveyed countries do not cover the cost of contraceptives in the national health system. Isabel da Silva, “Access to contraception in Europe remains highly unequal, says new report,” Euronews, 08 February 2023)  

Eight EU countries demand to strengthen of reforms to the EU asylum system and curb migration
On 08 February, Denmark, Lithuania, Latvia, Estonia, Slovakia, Greece, Malta, and Austria leaders demanded stronger reforms to the EU asylum system and curbing “irregular migration.” The eight countries’ leaders outlined their demands to the European Commission and the European council chiefs in a letter. The letter outlined the call for the creation of a harmonised EU asylum framework to look into all key migratory routes. It also called for the introduction of tougher policies for reparation and agreements with “third countries.” This comes as EU members are said to discuss possible measures to curb irregular migration in the upcoming EU summit. EU countries have introduced strict measures to secure their external borders to prevent irregular migration through unofficial and deadly routes. Countries such as Poland, Slovenia and Hungary have erected border fences to deter refugees and migrants which has been criticised by the European Commission. The Commission has also denied providing any request for funding the construction of the fences from the EU budget but has offered to fund physical border infrastructure including surveillance equipment. Before the summit, Hungarian Prime Minister Viktor Orban called on the EU to finance these border fences to “protect all of Europe.” (Eleonora Vasques, “Eight EU states demand tougher migration curbs ahead of summit,” EURACTIV, 07 February 2023; Gabriela Baczynska and Krisztina Than, “'Fences protect Europe', Hungary's Orban says ahead of EU migration summit,” Reuters, 07 February 2023)

Commission to partially compensate energy-intensive companies over emission costs
On 07 February, the European Commission said that it will be partially compensating energy-intensive companies over high electricity prices caused by indirect emission costs levied by the EU Emission Trading system. The total compensation of EUR 1.36 billion will come from a Greek scheme compiled to EU State aid rules. Indirect emission costs refer to the carbon prices on the generation of electricity drawn between 2021 and 2030 and were introduced to reduce carbon leakage. The final payment to the companies will be made in 2031 where the maximum amount compensated per company will be around 75 per cent of the emission costs incurred. (“State aid: Commission approves €1.36 billion Greek scheme to compensate energy-intensive companies for indirect emission costs,” ec.europa.eu, 07 February 2023) 

European Commission proposes a collective withdrawal from the Energy Charter Treaty 
On 07 February, Euronews reported that the European Commission proposes a collective withdrawal of all EU member countries from the Energy Charter Treaty (ECT). This comes as proposals to reform the controversial ECT failed due to opposition from countries such as Spain, France, the Netherlands and Germany. These four countries along with Poland, Luxembourg, Belgium and Austria have all announced plans to unilaterally withdraw from the treaty. The Commission Spokesperson said that the withdrawal was proposed as “there is no qualified majority in the Council to adopt the modernised Treaty,” and added that the ECT in its current form does not align with the European Green Deal. The ECT was signed in 1994 where it protects investors in the energy sector from discriminatory access, nationalisation, expropriation, breaches of contract and other circumstances which have an impact on their profit expectations. The Treaty allows the companies and investors to sue governments over policy changes which hamper their revenues and business ventures. (Jorge Liboreiro, “In U-turn, Brussels recommends EU-wide exit from controversial Energy Charter Treaty,” Euronews, 07 February 2023) 

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