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Neither of the two contentious issues is on the official summit agenda and some EU diplomats said they hope to avoid a formal debate on them. EU leaders take decisions unanimously, meaning one country can block a deal. Escalating the car CO2 debate to leaders would therefore be pointless, one EU diplomat said on condition of anonymity. A German government official said on Wednesday the talks were "very constructive", but that the issue would not be addressed at the EU summit. ENERGY REFORMSOn the second day of the summit on Friday, EU heads of state and government will discuss a reform of the EU electricity market.

That will be discussed over lunch with Guterres before the U.N. secretary-general takes his leave and EU leaders get an update on the war from Ukrainian President Volodymyr Zelenskiy via video link, officials said. "We will, as always, reaffirm our unwavering commitment to assist Ukraine," declared Charles Michel, president of the European Council of EU leaders. Diplomats involved in preparing the summit of the 27 national EU leaders were sceptical of an imminent breakthrough. AMMUNITIONBeyond food security and sanctions, the leaders will also discuss bringing those responsible for the 13-month war to justice, as well as providing more military aid to Ukraine. "We will need to take measures to boost the manufacturing capacity of the European defence industry," Michel said in his letter inviting fellow EU leaders to the summit.

☆ Italy makes biofuel demand as EU attempts to unblock combustion engine phase-out
▼ + stars: | 2023-03-22 | by ( Kate Abnett | ) www.reuters.com time to read: +2 min

BRUSSELS, March 22 (Reuters) - Italy has warned the European Commission that it will only support a solution to unblock the EU's planned phase-out of combustion engine cars by 2035 if it allows the sale of cars running on biofuels to continue after that date. The European Union is racing to save its main policy for cutting car CO2 emissions, after Germany lodged last-minute opposition to the law, which would phase out sales of new combustion engine cars from 2035. Italy and Germany have both demanded that the EU allow sales of new combustion engine cars after 2035 if they run exclusively on carbon neutral e-fuels - which could support manufacturers of combustion engine cars and parts. The draft, seen by Reuters on Tuesday, did not include biofuels in the definition of "carbon neutral fuels". A commitment from the Commission on when it will make this legal proposal could unlock a deal on the combustion engine phase-out, they three said.

The European Union is set to propose on Wednesday new requirements on companies seeking to promote goods sold in Europe with labels like "natural", "climate neutral" or having "recycled content". Companies that make climate-friendly claims without proof could face financial penalties. A Commission assessment of 150 claims about products' environmental characteristics in 2020 found that most - 53% - provided "vague, misleading or unfounded information". Campaign groups welcomed the draft plan as a step forward from the largely unregulated proliferation of green claims today. Among the requirements would be that companies whose claims rely on buying carbon credits to offset their own environmental impact must disclose this.

The rules would apply to fridges, vacuum cleaners, televisions, washing machines and other goods that are deemed "repairable" under EU law. The EU is negotiating rules that would extend the requirement to smartphones and tablets. Under the EU rules, companies would have to repair a defective product for free within the two-year legal guarantee period, if the cost of repair is cheaper or equal to replacing the product. After that date, companies must still offer repairs, either for free or for a charge. A second law, proposed by Brussels on Wednesday, would force companies to verify claims that their products are "green" or "eco-friendly".

☆ Exclusive: EU drafts plan to allow e-fuel combustion engine cars
▼ + stars: | 2023-03-21 | by ( Markus Wacket | ) www.reuters.com time to read: +3 min

The draft proposal, seen by Reuters on Tuesday, suggests creating a new type of vehicle category in the European Union for cars that can only run on carbon neutral fuels. Such vehicles would have to use technology that would prevent them from driving if other fuels are used, the draft said. The proposal could offer a route for carmakers to keep selling combustion engine vehicles after 2035, the date when a planned EU law is set to ban the sale of new CO2-emitting cars. The Ministry's core demand is that the EU allow sales of new cars running on e-fuels after 2035. An EU official told Reuters on Monday that any proposal on registering e-fuel cars would only be made after the combustion engine phaseout law was finally adopted.

☆ Germany sees progress in EU talks for ban on fossil fuel cars
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

[1/2] Cars are pictured at rush hour traffic on A100 highway during a snowfall in Berlin, Germany, February 8, 2021. It wants sales of new cars with internal combustion engines to be allowed after that date if they run on e-fuels. "There are positive trends that are a good basis for further talks," a spokesman for the ministry told a news conference. The Commission declined to comment on the letter, which also suggested allowing carmakers to count such cars towards complying with CO2 targets. Such changes are legally problematic as the European Parliament has approved the regulations agreed between the bloc's member states and the Commission, meaning any change could be complicated and time-consuming.

☆ G7 to hold off revising Russian oil price cap this week - EU officials
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +1 min

BRUSSELS, March 20 (Reuters) - Group of Seven Nations are not likely to revise a price cap on Russian oil this week, two European Union officials told Reuters on Monday. The G7 measure bans companies from providing transportation, insurance and financing services for Russian crude oil and oil products if they are sold at a price above the cap. In addition, the 27-country European Union halted its own imports of Russian crude oil delivered by sea from Dec. 5. The United States and Britain have also imposed restrictions on Russian oil imports. Some EU countries including Poland have sought to lower the G7 price cap level to further restrict the revenue Moscow can use to fund the war in Ukraine.

☆ EU proposes extending energy crisis measure to curb gas demand
▼ + stars: | 2023-03-20 | by ( Kate Abnett | ) www.reuters.com time to read: +2 min

The European Commission on Monday proposed that EU countries extend for a year an emergency measure to curb gas demand for the next 12 months, to help prepare Europe to get through next winter with scarce Russian gas. The Commission said countries should extend, from April until March 2024, a voluntary target to curb their gas demand by 15% versus their 2017-2022 average consumption. EU countries slashed their combined gas use by 19% from August to January 2023 helped by an unusually warm winter. Risks remain, including cold weather or increased Chinese gas demand which could reduce supply available for European buyers. The Commission said continued gas demand curbs are needed if countries are to fill their gas storage to 90% of capacity by November - a binding target EU countries agreed last year to help avert winter shortages.

☆ EU leaders to urge companies to jointly buy gas - draft
▼ + stars: | 2023-03-17 | by ( Kate Abnett | ) www.reuters.com time to read: +2 min

BRUSSELS, March 17 (Reuters) - European Union country leaders could urge companies next week to take part in a scheme for countries to jointly buy gas, according to draft conclusions for a summit in Brussels. It said Europe's energy security, which was impacted by Russia slashing gas supplies last year, has improved, but said the EU must prepare for next winter. EU countries plan to jointly buy gas in the coming months, to help fill storage caverns ahead of peak winter demand. "It (the council of EU leaders) calls on all stakeholders involved to make full use of the joint purchasing mechanism," the draft said. The Commission plans to propose extending a voluntary target to cut winter gas consumption by 15%.

☆ EU strikes deal to curb energy use by 2030
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

BRUSSELS, March 10 (Reuters) - The European Union struck a deal on Friday to cut final energy consumption across the bloc by 11.7% by 2030, a goal lawmakers said would help fight climate change and curb Europe's use of Russian fossil fuels. The deal was agreed after all-night talks between negotiators from EU countries and the European Parliament. The 11.7% goal was a compromise between the EU Parliament, which had wanted a far higher goal of 14%, and some EU countries who wanted to stick to the original 9% aim. From 2024 to 2030, countries will have to save an average of 1.49% of final energy consumption per year. The deal will now go to the European Parliament and EU countries for a final vote - which is usually a formality that approves the law with no changes.

The EU law would require all new cars sold from 2035 to have zero CO2 emissions, making it effectively impossible to sell new fossil fuel-powered cars. E-fuels, like e-kerosene, e-methane, or e-methanol, are made by synthesizing captured CO2 emissions and hydrogen produced using renewable or CO2-free electricity. Germany and Italy want clearer assurances from the EU that sales of new ICE cars can continue beyond 2035, if they run on CO2-neutral fuels. Most major carmakers are betting on battery-electric vehicles - a technology that is already widely available - as the main route to cut CO2 emissions from passenger cars. Supporters say e-fuels offer a route to cut the CO2 emissions of our existing passenger car fleet, without replacing every vehicle with an electric one.

But EU countries still need to rubber stamp the decision before it can take effect. EU countries' ambassadors on Friday cancelled the vote that had been planned for March 7, the spokesperson for Sweden said. Italy, which has previously said it will vote against the EU cars law, on Friday welcomed the postponement of the vote. Such an outcome, along with some resistance from Italy and some eastern European countries, could throw the whole EU ban into question. European Commission President Ursula von der Leyen will attend a German cabinet meeting at the Schloss Meseberg palace on Sunday, where the topic is likely to be discussed.

MADRID/PARIS/STOCKHOLM, March 2 (Reuters) - France and Spain are poised to announce a breakthrough this week in a long-running impasse over hefty costs of what would be their first undersea electricity link, a minister and sources in both countries told Reuters. That was due to unforeseen seabed instability on the French side that required costly re-routing, and rising costs of raw materials. Spain is a growing producer of renewable energy that it exports to France and it wants its neighbour to pay most of the extra costs. That had led to disagreement amid wider tensions between them about pipeline connections and protectionism. Spanish sources said the go-ahead would likely mean that France, whose nuclear power industry has been beset by problems, finally agreed to pay more.

☆ Explainer: Europe gets ready to revamp its electricity market
▼ + stars: | 2023-02-27 | by ( Kate Abnett | ) www.reuters.com time to read: +6 min

STOCKHOLM, Feb 27 (Reuters) - European Union energy ministers meet on Monday to debate upcoming power market reforms. Currently, power prices in Europe are set by the running cost of the plant that supplies the final chunk of power needed to meet overall demand. Often, that is a gas plant, so gas price spikes can send electricity prices soaring. They say Europe's existing power market is functioning well, and has fostered years of lower power prices, supported renewable energy and helped avoid energy shortages. The Commission initially pitched the reform as a chance to "decouple" gas and power prices in Europe, suggesting a redesign of the current system of setting power prices.

European gas prices rallied in the run-up to Moscow's invasion of Ukraine begun almost exactly a year ago and they leapt to record highs when Russia subsequently cut supplies of relatively cheap pipeline gas. Although European prices have eased to around 50 euros ($53) per megawatt hour (MWh) from last August's peak of more than 340 euros, they remain above historic averages. That was even when they had received significant levels of Russian gas on long-term contracts prior to the shut down of the Nord Stream pipeline to Germany in August. Nord Stream's closure drove up European gas prices, as well as liquefied natural gas (LNG) prices, which also hit record levels of around 70 million British thermal units (mmBtu), compared with around $16 now . That could be tricky as the fall in gas prices this year has reduced the incentive to avoid the fuel.

☆ EU still has not agreed on anniversary Russia sanctions, more talks Thurs - sources
▼ + stars: | 2023-02-22 | by ( Gabriela Baczynska | ) www.reuters.com time to read: +2 min

It would also bar more EU exports to Russia of tech equipment and spare parts Moscow might use on the battlefield. "There are several issues outstanding, including on rubber and reporting obligations," said one of the sources, who all spoke under condition of anonymity due to the confidentiality of the negotiations between EU countries. More talks among Brussels representatives of EU members were due on Thursday afternoon, said the sources. NO NUCLEAR, DIAMONDSTaken all together, the sanctions against Russia would be the toughest the bloc has ever imposed. So that's why we hope that we will see these sanctions in the tenth package, otherwise, maybe in the next packages."

☆ EU countries mull curbing Russia sanctions dodging via trade tools, access to EU market
▼ + stars: | 2023-02-21 | by ( Gabriela Baczynska | ) www.reuters.com time to read: +3 min

BRUSSELS, Feb 21 (Reuters) - Twelve EU countries are calling on the European Union to stop companies and third countries from circumventing EU sanctions on Russia by using trade and access to the European single market as leverage, a document showed on Tuesday. The provision of material support to Russia’s military and defense industrial base will have severe consequences regarding their access to the EU market," they added. "Special focus should be put on Western components that are crucial to the Russian military industry," the paper said. "These components are not easily replaced: changing an element in weapons production takes months, due to certification and design processes. A small disruption of these production chains therefore quickly has a significant impact in the Russian ability to produce weapons and military equipment," it said.

The more emitters have to pay for EU carbon permits to cover each tonne of C02 they produce, the greater the incentive to invest in low carbon technologies and switch to less polluting fuels. Still, rising carbon prices are a cause of political tensions in the EU and breaching the 100 euro threshold is likely to reignite debates over prices. Spanish Prime Minister Pedro Sanchez last year called for a CO2 price cap to help tackle soaring inflation. Other EU countries view a robust carbon price as vital to meeting climate goals. Years of weak prices followed until CO2 prices began to recover in 2018 when the EU agreed to remove surplus permits from the market.

An ETS sets a cap on the amount of CO2 emissions that a sector, or group of sectors, can produce. The system creates CO2 permits, called EU Allowances (EUAs) for those emissions, which companies must buy for each tonne of CO2 they emit. CO2 permits are traded on the open market, meaning companies, traders and investors buying them pay the same price. Critics say by making it cheaper to pollute, free permits have reduced the incentive for industries to reduce their emissions. Companies that already pay CO2 costs in the country where the goods were produced can be exempted from the EU levy.

Benchmark EU carbon permit prices hit 100 euros per tonne of CO2 on Tuesday, the highest since the scheme launched in 2005. The largest project being developed in the Netherlands secured national funding to bridge the gap between costs and the CO2 price. The United States does not have a nationwide carbon price, although states including California do. An EU carbon price of 100 euros adds 30-40 euros to the cost of a tonne of primary steel production, according to Eurofer. For example, blast furnace-based steelmakers were given around 80% of their CO2 permits, commodity industry analysis firm CRU said.

Methane is the main component of natural gas, so captured emissions can be sold as fuel. The energy sector accounts for about 40% of all methane emissions from human activity, second to agriculture. Dozens of oil companies have also voluntarily committed to reduce emissions through the Oil and Gas Methane Partnership, and the Oil and Gas Climate Initiative. Altogether, the coal industry was responsible for about 40 million tonnes of methane emissions in 2022. Coal-related methane emissions in China are equivalent to total CO2 emissions from the whole of sub-Saharan Africa," Gould said.

The debate - which focuses on hydrogen produced from nuclear or renewable energy - has already delayed negotiations on new EU renewable energy targets and threatened a multi-billion-euro hydrogen pipeline. Some EU officials fear it could spill into other green energy policies, potentially delaying laws needed to meet EU climate targets. "There are outstanding obstacles, but they will be resolved," EU foreign policy chief Josep Borrell said of the climate conclusions on Monday, without specifying what the obstacles were. A draft of the conclusions, seen by Reuters, said: "EU energy diplomacy will promote the increasing uptake and system integration of renewable energy, hydrogen and its derivatives." They says they acknowledge nuclear's low-carbon contribution, but that it should not be put on a level footing with renewable energy sources like wind and solar.

☆ EU lawmakers approve effective 2035 ban on new fossil fuel cars
▼ + stars: | 2023-02-14 | by ( Kate Abnett | ) www.reuters.com time to read: +2 min

The landmark rules will require that by 2035 carmakers must achieve a 100% cut in CO2 emissions from new cars sold, which would make it impossible to sell new fossil fuel-powered vehicles in the 27-country bloc. The law will also set a 55% cut in CO2 emissions for new cars sold from 2030 versus 2021 levels, much higher than the existing target of a 37.5%. New vans must comply with a 100% CO2 cut by 2035, and a 50% cut by 2030, compared with 2021 levels. Volkswagen (VOWG_p.DE) chief executive Thomas Schaefer said last year that from 2033 the brand will only produce electric cars in Europe. The car CO2 law is part a broader package of tougher EU climate policies, designed to deliver the bloc's targets to slash greenhouse gas emissions this decade.

☆ Europe's spend on energy crisis nears 800 billion euros
▼ + stars: | 2023-02-13 | by ( Kate Abnett | ) www.reuters.com time to read: +2 min

BRUSSELS, Feb 13 (Reuters) - European countries' bill to shield households and companies from soaring energy costs has climbed to nearly 800 billion euros, researchers said on Monday, urging countries to be more targeted in their spending to tackle the energy crisis. European Union countries have now earmarked or allocated 681 billion euros in energy crisis speding, while Britain allocated 103 billion euros and Norway 8.1 billon euros since September 2021, according to the analysis by think-tank Bruegel. Germany topped the spending chart, allocating nearly 270 billion euros - a sum that eclipsed all other countries. Britain, Italy and France were the next highest, although each spent less than 150 billion euros. Germany has faced criticism over its mammoth energy aid package, which far outstrips what other EU nations can afford.

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