Policy Updates

On December 9, 2024, the EC initiated the 9^th edition of the Raw Materials Week, an event that brings together stakeholders from industry, administration, civil society, research and academia to discuss policies and initiatives in the field of raw materials.

Experts from various strategic sectors discussed how to foster domestic capacities, finance and derisk projects, stimulate research and innovation and improve critical raw materials circularity. The participants discussed the implementation of the Critical Raw Materials Act, which aims to bring a secure and sustainable supply of materials for European industry by using strategic partnerships to diversify supplies.

The High-Level Conference on Raw Materials will take place on December 11, 2024, and will be streamed online. EC Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné will explain his vision for the EU's raw materials policy. On December 12, the EC will discuss raw materials projects in the Minerals Security Partnership Forum, which is a platform for cooperation on critical raw materials for the global green and digital transitions.

The week includes specific sessions on investment opportunities in Canada, Greenland, Australia, Brazil, Kazakhstan, Uzbekistan, Norway, Zambia, the Democratic Republic of Congo, and South Africa.

On December 9, 2024, 70 organizations from various sectors and countries launched a joint call urging the EU to increase funding for development, humanitarian assistance, and climate action in the 2028–2034 MFF.

Initiated by Aidsfonds, Global Citizen, The ONE Campaign, and Pandemic Action Network, the effort invites organizations to advocate for an ODA budget that addresses global challenges.

The coalition established the MFF Hub to share information and analysis on the upcoming negotiations, as the EU begins discussions ahead of its next MFF proposal, expected in late summer 2025. A petition has also been launched, calling for a bold and fair ODA budget.

Separately, 45 organizations urged the EU to allocate at least EUR200 billion (US$216 billion) in ODA for 2028–2034. They argue this investment would strengthen Europe as a trusted partner, enhance crisis preparedness, boost resilience for the EU and its partners, and maximize collective resources.

On December 4, 2024, the EC announced EUR15 million (US$16 million) for the launch of the next phase of the Regreening Africa program at the UNCCD COP16 in Riyadh.

This program is part of the Great Green Wall initiative which aims to create green and productive land in the Sahel, and it is part of the AU- EU Global Gateway Investment Package.

The next phase of the program aims to restore degraded lands, strengthen community resilience, and improve livelihoods through sustainable land management and innovation. It will combat the impact of climate change and desertification in the Sahel and Horn of Africa, with a focus on Somalia, Senegal, Ethiopia, Ghana, Nigeria, Mali, and potentially Niger.

The new EC Commissioner for International Partnerships Jozef Síkela highlighted that nearly one million hectares of degraded land have been restored as a result of the program's efforts. He noted that the next phase will be even more ambitious in building resilience and driving sustainable growth.

On November 21, 2024, the EC published a statement highlighting the EU’s contribution to COP29, which included finalizing an agreement on carbon market rules that will enhance environmental integrity, transparency, and accountability.

The new rules will set a UN-backed standard for high-quality carbon offsets, which will increase transparency of bilateral carbon deals, and enable a cost-effective reduction and removal of emissions.

The EU was among donors to announce an intention to publish an NDC next year. The announcement is in line with the 1.5°C goal and includes economy-wide reduction targets, aligned with mid-century net zero goals.

Together with the Beyond Oil and Gas Alliance, the EU announced a partnership related to the transition away from fossil fuels. It will promote the phase-out of oil and gas, conduct analysis and dialogue for an orderly, just, and equitable transition, and strengthen producer-consumer coordination and support for just transitions in oil and gas-dependent low- and middle-income countries.

The EU simultaneously published its first biennial transparency report, which claimed that the EU is on track to meet its climate goals and is actively supporting global efforts to combat climate change. The report showed that the EU's net greenhouse gas emissions fell by 37% since 1990 and that the EU has laid out a path to reduce net greenhouse gas emissions by 90% by 2040. The publication also highlighted that the EU and its Member States contributed EUR28.6 billion (US$31 billion) in public climate finance and mobilized an additional EUR7.2 billion (US$7.8 billion) in private finance for developing countries.

On November 19, 2024, EC President Ursula von der Leyen spoke at Session III of the G20: Energy Transitions and the Promotion of Sustainable Development, where she expressed concern over fossil fuel effects on climate, health, industries, and economies.

The president highlighted three areas that need work to advance renewable energy and efficiency:

• Scale up renewables on every continent, especially Africa which holds 60% of the best global solar resources while 600 million people lack electricity;
• Work on enablers, improving energy grids, ensuring a stable and ethical supply of minerals and mobilizing additional investment, particularly from the private sector; and
• Support closer cooperation between governments, international organizations and financial institutions. The EU, in cooperation with the UK, launched a new Global Energy Transition Forum which will support the implementation of the energy targets set during COP28.

The EU joined the Global Alliance to Combat Hunger and Poverty, launched during the G20. This global initiative intends to gather funds and knowledge to implement public policies and social technologies that effectively reduce hunger and poverty.

On November 18, 2024, both the European Parliament and the Council of the EU published their priorities ahead of COP29 negotiations, which highlighted focus on climate financing, carbon pricing, and national contributions.

The EU and its Member States also issued a statement reaffirming their commitment to strengthen gender integration in global climate action.

The European Parliament called for a NCQG for financing climate action which is socially fair, aligned with the polluter-pays principle, and includes public, private, and innovative financing. The MEPs want the big emerging economies with high emissions and high GDPs to financially contribute to global climate action. They also called for the EU to step up its green diplomacy, and help other countries develop their carbon pricing mechanisms. The Parliament also called to transition away from fossil fuels by stopping the subsidies and reallocating this funding to climate action.

On October 14, the Council of the EU had approved the EU’s general negotiating position for COP29, calling for:

• An ambitious and balanced outcome which keeps the 1.5°C temperature goal, in line with COP28 ambitions and absolute reduction targets in NDCs for all greenhouse gasses;
• Making progress on long-term adaptation and resilience, and urgently scaling up mitigation and implementation of the global stocktake decision; and
• An agreement on an effective, achievable, and ambitious NCQG, which includes various flows of finance and a broader group of contributors.

EU Commissioner Wopke Hoekstra delivered remarks at the opening session of COP29. He highlighted that the challenge to meet the 1.5°C target is political and the EU will continue to lead the effort. Regarding the negotiations on the NCQG on Climate Finance, Hoesktra said public finance should remain at its core, but that it is important to expand the donor base to include those who contribute to emissions. The funding will be dispersed to those most in need. Finally, more resources beyond public sector funding must contribute to this effort.

On the opening day of COP29, the EU and its Member States were joined by 17 other countries on a joint statement, which reiterated the importance of gender issues in the fight against climate change. It underscored the disproportionate effect it has on women and the need for full and equal participation in decision-making processes. It also called for the adoption of a work program on gender and climate at COP29, in line with earlier commitments.

On November 18, 2024, EC President Ursula von der Leyen delivered a speech at Session I: Social Inclusion and the Fight against Hunger and Poverty at the G20 in Rio de Janeiro.

During her speech at the 1^st Session of the G20 Leaders' Meeting, the president painted a grim picture of the world where climate change, disasters, and conflict are a daily reality. However, she reiterated that the EU is committed to fight poverty, hunger, and social exclusion domestically and internationally. She underlined that globally the EU is the largest provider of ODA, and committed EUR15 billion (US$16 billion) to fight poverty and hunger over the past few 3 years. She also noted that the EU continues to invest in infrastructure and creating jobs through Global Gateway.

On November 17, 2024, during Global Citizen NOW: Rio de Janeiro, von der Leyen and South African President Cyril Ramaphosa launched the global campaign Scaling up Renewables in Africa, together with Global Citizen, and the IEA a policy partner. The one-year long campaign will drive new commitments on policy and finance to mobilize investments from governments, the private sector, and MDBs into renewables in Africa. While Africa holds 60% of the world's best solar resources, the continent attracts only 3% of global energy investment.

Von der Leyen will also invite global leaders to join forces in a new Global Energy Transition Forum, which will bring together governments, international organizations, and financial actors to amplify the implementation of the targets set in COP28 of tripling renewable energy and doubling energy efficiency worldwide.

On November 8, 2024, the EU announced that it will continue to support global climate action and push for ambitious finance and investment goals ahead of COP29 on November 11-22 in Azerbaijan.

The EU will push for international collaboration to meet the Paris Agreement’s goal of limiting global warming to 1.5°C. The main priority of this year’s negotiations will be the establishment of a NCQG on Climate Finance. The EU highlighted that the NCQG should contribute to making financial flows consistent with the Paris Agreement and mobilise financing from a wide variety of sources, public and private, domestic and international.

Other key elements for the EU in the COP29 include reconfirming the shift from fossil fuels, tripling investments in renewable energy, and doubling energy efficiency by 2030. The EU will advocate for ambitious updates to NDCs, and it intends to propose a legislative target to reduce emissions by 90% by 2040 as part of the European Climate Law. The EU negotiating team will also work to conclude the negotiations on international carbon markets under Article 6 of the Paris Agreement.

Commissioner for Climate Action Wopke Hoekstra will lead the EU negotiating team at COP29, with an aim to deliver on the negotiating mandate adopted last month. Commissioner for Energy Kadri Simson will focus on the transition away from fossil fuels, reduction of methane emissions, and the development of clean technologies. Commissioner for Innovation, Research, Culture, Education and Youth Iliana Ivanova will attend a high-level event on The Future of Net Zero Competitiveness.

On October 24, 2024, the EIB and the CDB announced a new initiative to support water supply and management, as well as the ocean ecosystem across the Caribbean.

EIB’s EUR100 million (US$111 million) loan will boost CDB support to projects in the area of clean water supply, collection and treatment of wastewater and solid waste, and flood prevention. The fourteen eligible Caribbean countries are Antigua & Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint Kitts & Nevis, Saint Lucia, Saint Vincent & the Grenadines, Suriname, and Trinidad & Tobago. The funds will allow them to better adapt to periods of drought or intense rain and reduce ocean pollution thanks to this initiative.

The projects will also receive technical advice from experts, thanks to a EUR17 million (US$19 million) grant from the EC’s Caribbean Investment Facility, which fills the funding gaps by pooling resources from EU partners and attracting additional investment.

On October 23, 2024, the European Commissioners-designates published their written replies to the EP questions ahead of the upcoming hearings in the EP which will confirm or reject the proposed Commissioners.

The hearings will take place between November 4-12, 2024, with the Commissioner-designate for International Partnerships Jozef Sikela’s hearing scheduled for November 6, 2024.

In his written replies, Commissioner-designate for International Partnerships, has highlighted the key areas and priorities for his future mandate. He said that International Partnerships will be a cornerstone of the EU’s new foreign economic policy, with economic growth being the main engine of sustainable development. He will continue to focus on the Global Gateway as the EU’s main contribution to the 2030 Agenda, while focusing on food, health, and education in fragile and conflict contexts.

Mobilizing private investments will be key to achieving the biggest impact of EU funding. He will continue to build on the Team Europe approach as a way of coordinating the EU's limited resources and deliver on priorities as a team. The main sectors for engagement will be green energy, digital infrastructure, transport, education, and health, as investing in these areas will reduce poverty, address the root causes of irregular migration and bolster economic security.

Commissioner for Preparedness, Crisis Management, and Equality Hadja Lahbib committed to stepping up efforts to boost preparedness and response to disasters, including those linked to climate change and health. She will steer the development and implementation of an ambitious EU Preparedness Union Strategy. In her role as a Commissioner for Equality, she will develop the Gender Equality Strategy post-2025.

Commissioner-designate for Budget Piotr Serafin called for the EC to be an ‘Investment Commission’, with a more efficient and impactful financial architecture for the Union, and a more focused, simpler, and impactful budget. He supported strengthened and modernized revenues, including via new own resources.

Commissioner for Startups, Research and Innovation Ekaterina Zaharieva will prioritize the development of the next Framework Program for Research and Innovation, as well as work to increase research spending and support the target of investing 3% GDP in R&D. She stressed the importance of bridging research and innovation ecosystems to address global challenges, while pursuing reciprocity, a global level-playing field, and Europe’s strategic autonomy and economic security.