Textile products must last longer and be easier to reuse, repair and recycle
The destruction of unsold or returned textiles should be banned
Human, social and labour rights must be respected during production
Need for binding targets and measures addressing the entire lifecycle of textiles

Environment Committee MEPs adopted their recommendations today for EU measures to ensure that textiles are produced in a circular, sustainable and socially just way.
MEPs say textile products sold in the EU should be more durable, easier to reuse, repair and recycle, made to a great extent of recycled fibres, and free of hazardous substances. They underline that textiles should be produced in a manner that respects human, social and labour rights, the environment and animal welfare throughout their supply chain.
Driving fast fashion out of fashion
To tackle overproduction and the overconsumption of clothes and footwear, the Committee calls on the Commission and EU countries to adopt measures that put an end to “fast fashion”, starting with a clear definition of the term based on “high volumes of lower quality garments at low price levels”. Consumers should be better informed to help them make responsible and sustainable choices, including through the introduction of a “digital product passport” in the upcoming revision of the ecodesign regulation.
Reducing emissions, water and energy use, increasing collection and reuse
MEPs want ambitious science-based targets to reduce greenhouse gas emissions in the entire lifecycle of the textiles sector. They request the Commission and member states to ensure that production processes become less energy- and water-intensive, avoid the use and release of harmful substances, and reduce material and consumption footprints. Ecodesign requirements on all textile and footwear products should be adopted as a priority.
MEPs also want the revision of the Waste Framework Directive to include specific separate targets for textile waste prevention, collection, reuse and recycling, as well as the phase out of the landfilling of textiles.
Other recommendations include:

The inclusion of an explicit ban on the destruction of unsold and returned textile goods in the EU ecodesign rules;
Clear rules to put an end to greenwashing practices, through the ongoing legislative work on empowering consumers in the green transition and regulating green claims;
Ensure fair and ethical trade practices through enforcing EU trade agreements;
The launch without further delay of the Commission initiative to prevent and minimise the release of microplastics and microfibers into the environment.

The own initiative report was adopted with 68 votes in favour, none against and one abstention.
Quote
Rapporteur Delara Burkhardt (S&D, DE) said: “Consumers alone cannot reform the global textile sector through their purchasing habits. If we allow the market to self-regulate, we leave the doors open for a fast fashion model that exploits people and the planet’s resources. The EU must legally oblige manufacturers and large fashion companies to operate more sustainably. People and the planet are more important than the textile industry’s profits. The disasters that have occurred in the past, such as the collapse of the Rana Plaza factory in Bangladesh, growing landfills in Ghana and Nepal, polluted water, and microplastics in our oceans, show what happens when this principle is not pursued. We have waited long enough – it is time to make a change!”
Next steps
The report is expected to be adopted in plenary before the summer.
Background
The Commission presented the EU Strategy for Sustainable and Circular Textiles on 30 March 2022 to address the entire lifecycle of textile products and propose actions to change how we produce and consume textiles. It aims to implement the commitments of the European Green Deal, the new circular economy action plan and the industrial strategy for the textiles’ sector.
Contact:

Dana Popp, Press Officer | dana.popp@europarl.europa.eu

Compliments of the European Parliament.The post EU Parliament | Ending fast fashion: tougher rules to fight excessive production and consumption first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Success will require tighter macroeconomic policies tailored to changing financial conditions, strong financial supervision and regulation, and bold supply-side reforms

Following a strong exit from the pandemic, Europe was hit hard by the economic impact of Russia’s invasion of Ukraine. Growth slowed drastically, inflation shot up, and episodes of financial stress materialized. But as a result of decisive policy action, most economies narrowly avoided a recession this winter. Europe now faces the difficult task of sustaining the recovery, defeating inflation, and safeguarding financial stability.
Growth in Europe’s advanced economies will slow to 0.7 percent this year from 3.6 percent last year, while emerging economies (excluding Türkiye, Belarus, Russia, and Ukraine) will also see a sharp decline to 1.1 percent from 4.4 percent. According to our latest Regional Economic Outlook, there will be a mild rebound in growth to 1.4 and 3 percent, respectively, in these two country income groups next year as real wages catch up and external demand picks up.

Graphic courtesy of the IMF.
Headline inflation continues to decline, but underlying inflation (excluding energy and food) will remain persistent and uncomfortably above central bank targets even by the end of next year. Recent and projected declines in energy prices will feed into lower underlying inflation, but not enough to bring it down quickly.
This projection assumes that everything falls into place. The European Central Bank and other monetary authorities will succeed in steadily bringing down inflation. Any renewed bouts of financial stress will remain contained. There will be no further escalation of Russia’s war in Ukraine and associated sanctions, keeping energy prices in check. Broader geoeconomic fragmentation, another growth-reducing and inflation-increasing “stagflationary” risk, will also be kept at bay.
Yet things could get worse on all fronts—with growth, inflation, and financial stability risks all complicating policy choices.
Inflation risks
Take inflation, which could stay higher for longer. Energy prices could spike again. Wage growth could pick up more than projected as workers obtain greater compensation for recent purchasing power losses in tight labor markets. In turn, faster wage gains would make underlying inflation more persistent—a material risk across much of Emerging European economies, where nominal wage growth is in double digits.
We also might still underestimate how much the two back-to-back COVID and energy crises have damaged Europe’s productive capacity and further heightened inflation risks. While companies have found ways to improve energy efficiency in the past year, persistently higher energy prices will reduce euro area output by more than 1 percent on average in the medium term, with larger losses in more energy-intensive economies such as Germany or Italy.
Likewise, shifting worker preferences away from long hours, and more workdays lost to sickness related to long COVID, may durably reduce labor supply and complicate the matching of workers with job vacancies. More broadly, economists’ real-time calculations tend to underestimate the permanent damage from crises—and thereby to overestimate the extent of economic slack—realizing their full extent only with a lag. Historically, in recovery periods, estimates of economic slack in European countries were revised downwards by a full percentage point one year after the fact and by even more later.

Graphic courtesy of the IMF.
Tight monetary policy for longer
Faced with such uncertainty, central banks should maintain tight monetary policy until core inflation is unambiguously on a downward path back to central bank inflation targets. Further increases in policy rates are required in the euro area, while central banks in emerging European economies should stand ready to tighten further where real interest rates are low, labor markets are tight, and underlying inflation is sticky.
In fact, high uncertainty strengthens the case for tight monetary policy. If the inflation outlook is uncertain, there is more to lose from reacting too late rather than too early, because underestimating persistence would entrench high inflation and force central banks to tighten later for longer. This would likely require a sharp recession to bring inflation back to target.
Similarly, when the extent of economic slack is uncertain, monetary policymakers should place more weight on inflation and labor market dynamics, both of which now favor higher interest rates. Furthermore, even accounting for elevated uncertainty, policy rates in a number of countries are at the lower end of commonly used benchmarks suggesting that higher rates may be needed to rein in inflation.

Graphic courtesy of the IMF.
Should financial conditions tighten due to forces such as banking sector problems, central banks would not need as tight a monetary policy to achieve their objectives. However, it would be misguided to pause or reverse tightening prematurely on the legitimate concern that higher interest rates come with higher financial stability risks.
Work in concert
Central banks across Europe cannot succeed alone, however. To defeat sticky inflation while avoiding financial crisis and a recession, all macroeconomic, financial and structural policies need to work in concert.
Maintaining financial stability will require close supervision and monitoring of both banks and nonbank financial intermediaries, contingency planning, and prompt corrective action. In the European Union, stability could be bolstered by extending the reach of bank resolution tools, clarifying availability of the Single Resolution Fund’s resources, ratifying the European Stability Mechanism’s amended treaty, and agreeing on a pan-European deposit insurance.
Defeating inflation also calls for European governments to pursue more ambitious fiscal consolidation than embedded in their current plans. A good starting point would be to phase out most energy relief measures and target any remaining ones more narrowly to vulnerable households. Tighter fiscal policy would also help central banks meet their objectives at lower interest rates. This would reduce debt service costs and further bolster financial stability, by reducing euro area economies’ vulnerability to financial fragmentation risks, and emerging European economies’ vulnerability to spillovers from ECB monetary policy tightening and higher global interest rates more broadly.
Finally, supply-side reforms could help sustain economic growth amid restrictive macroeconomic policies. Those that could ease underlying inflation pressures come at a premium, such as reducing labor market tensions by raising female and older workers’ labor force participation and enhancing job matching. In the EU, progress implementing the Recovery and Resilience Plans and the Capital Markets Union could unlock investments needed to raise crisis-hit productive capacity, achieve the EU’s climate goals, and enhance energy security.

Authors:

Alfred Kammer is the Director of the European Department at the International Monetary Fund

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The president vows to make the European Economic and Social Committee a true civil society gateway and open its doors to the EU accession countries. In the run-up to the 2024 European elections, the Committee will take on a more active role to stand up for democracy and strive for a more resilient, prosperous and inclusive Europe.
The European Economic and Social Committee (EESC) has elected Austria’s Oliver Röpke as the 34th president in its 65-year history. Former head of the Brussels office of the Austrian Trade Union Federation (ÖGB) and the most recent president of the EESC Workers’ Group, Mr Röpke will lead the EU body representing organised civil society for the next two and a half years.
Joining him at the helm of the EESC are Polish member Krzysztof Pater, as vice-president for the budget, and Romanian member Aurel Laurenţiu Plosceanu, as vice-president for communication. With the EESC presidency changing halfway through the term of office, Mr Röpke takes over from his fellow Austrian, Christa Schweng, who led the EESC through the first half of its 2020–2025 mandate.
Political manifesto of president Röpke
An advocate for workers’ rights, Mr Röpke is determined to consolidate the EESC’s role as a forum for dialogue between a wide range of actors, playing a key part in shaping EU policies and restoring citizens’ trust in the EU project.
“In these testing times, the support of civil society in gathering the voices of European citizens is key to building democratic resilience and shaping the future of Europe. Over the next term, I will step up the unique role of EESC as an interface between citizens, civil society and EU institutions, acting as a true platform for honest and inclusive debate. I will reach out to our partners in the Western Balkans and Eastern neighborhood to foster closer cooperation and engage with youth to make sure we are building the future they want to live in – inclusive, prosperous and democratic”, the president said.
For his presidency, Mr Röpke has chosen the motto Stand up for democracy, speak up for Europe. The four pillars of his programme – the Manifesto – embody his vision of a more social, representative and inclusive Europe which also reaches out to its neighbours to help them pave the way towards a more stable and peaceful future. The pillars are:

standing up for democracy at home;

standing up for democracy abroad;
speaking up for Europe by making the EESC more representative; and
speaking up for Europe by strengthening the quality of the EESC’s outreach and its forward-looking work.

The Manifesto includes a list of actions that the new president intends to implement during his mandate. Among others, the actions include:

appointing Honorary Enlargement Members from EU accession countries to involve them in the daily advisory work of the Committee;
a robust participation of the EESC in campaigns and activities to increase voter participation in the 2024 European elections;

greater involvement of citizens in the EU project, in particular youth, through citizen panels, implementation of the EU Youth Test in EESC opinions and establishment of a Youth Advisors’ Council to the President;
boosting of gender balance in EESC’s own ranks and of transparency by taking part in the EU transparency register and supporting the EU ethics body;
embedding a foresight dimension and developing a forward-looking perspective to EESC work;
institutional reform in order to strengthen the EESC’s voice and prepare it for a greater role if the EU Treaties are revised.

The new EESC president is also adamant that the EU must focus on driving forward its social agenda and safeguarding sustainable competitiveness, pushing for social inclusion and greater social and economic equality.
Mr Röpke will present the programme during his speech at the inaugural plenary session on 26 April. It can be followed here.
Background

Oliver Röpke (AT): EESC president, president of the EESC’s Workers’ Group from 2019 to 2023, Workers’ Group – president’s webpage

Krysztof Pater (PL): vice-president of the EESC, president of the Labour Market Observatory (LMO) from 2010 to 2013 and 2018 to 2020, Civil Society Organisations’ Group – vice-president’s webpage (budget)

Aurel Laurenţiu Plosceanu (RO): vice-president of the EESC, president of the EESC Section for Employment, Social Affairs and Citizenship and EU chair of the EU-Serbia Joint Consultative Committee (2020-2023), Employers’ Group – vice-president’s webpage (communication)
2023–2025 Manifesto, “Stand up for democracy, Speak up for Europe”, Oliver Röpke, president of the EESC

More information

The president and two vice-presidents are elected by a simple majority during the inaugural session of the assembly. They are chosen from each of the EESC’s three groups (Employers’ Group, Workers’ Group and Civil Society Organisations’ Group) in turn for two‑and‑a‑half‑year terms. This means that two elections are held during each EESC term of office – at the beginning and halfway through. The president is responsible for the orderly conduct of the Committee’s business and represents the EESC in its relations with other institutions and bodies. The two vice-presidents – elected from the two groups to which the president does not belong – are responsible for communication and the budget respectively.
The EESC is made up of 329 members from its 27 Member States. They are nominated by their national governments and appointed by the Council of the European Union for a period of five years. They then work independently in the interests of all EU citizens. These members are not politicians but employers, trade unionists and representatives of various sectors of society, such as farming, consumer and environmental organisations, the social economy, SMEs, professionals, and associations representing persons with disabilities, the voluntary sector, gender equality, youth, academia, and so on.

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The EU has a problem with climate catastrophe insurance: only a quarter of the losses from climate-related disasters are covered. Greater coverage could reduce the economic damage that results from them. This joint ECB-EIOPA post for The ECB Blog looks at ways to make this happen.

Drought affected two-thirds of the European Union in 2022, likely the worst episode in 500 years.[2] Agricultural production withered, river transport was disrupted and hydroelectric power generation fell, which exacerbated the energy crisis. Just a year earlier, severe flooding across the continent killed hundreds and caused substantial damage. Climate change will make catastrophes like these more frequent and more severe.
Putting the brake on climate change by accelerating the green transition remains vital. But we also need policies to lessen the impact of catastrophes when they occur. Insurance plays an important role in this. By promptly providing funds for reconstruction, insurance allows economic activities to return to pre-catastrophe levels more quickly.[3] So high rates of coverage and speedy pay-outs can substantially mitigate the economic damage. They can also reduce financial stability risks and lower the cost to taxpayers of government relief to cover uninsured losses.
So, are we covered when disaster strikes? No, the EU actually has a major climate insurance protection gap. Only a quarter of climate-related catastrophe losses are insured. In some countries, the figure is less than 5% (Figure 1). Moreover, the growing effects of climate change mean that coverage is likely to shrink as rising premiums choke demand and insurers withdraw from particularly exposed areas.

Figure 1
The insured share of economic losses related to catastrophes in Europe is low and expected to decline

Average share of insured economic losses caused by weather-related events in Europe
1980-2020 percentages

Sources: EIOPA Protection Gap Dashboard, European Environment Agency (EEA) CATDAT.

Even when insurance coverage is affordable, there are various reasons why it is not purchased. For one, people generally underestimate the likelihood and impact of catastrophes. For another, they often believe governments will compensate them for losses and that they therefore do not need their own insurance. This behaviour is a well-known challenge for insurance and is called moral hazard. Broadly speaking, moral hazard is where people do not make the effort to reduce risks themselves because they expect to be compensated for their loss anyway.
A ladder approach to catastrophe insurance
The ECB and the European Insurance and Occupational Pensions Authority (EIOPA) are working together to find ways to address the problem. Today they published a joint Discussion Paper outlining policy options to reduce the climate insurance protection gap in Europe. Insurance and catastrophe losses come in several layers. The Discussion Paper uses the concept of a ladder to help visualise these layers and tailor the proposed policy options to them (Figure 2).
The first rung of the ladder is private insurance, the initial line of defence to pool risks and cover losses. Carefully designed insurance policies can encourage households and businesses to better adapt to climate change and increase their resilience, for example by setting standards for flood-proofing homes in flood-prone areas.

Figure 2
A ladder approach to catastrophe insurance

Source: Simplified version of figure appearing in ECB-EIOPA discussion paper ”Policy options to reduce the climate insurance protection gap” (2023).

Larger catastrophe risks, however, require a more elaborate framework. The next rung involves reinsurance and greater use of capital market instruments such as catastrophe (“cat”) bonds. Cat bonds can help insurers pass on part of the losses from rarer, but more devastating, catastrophes to a broad set of investors, helping to diversify sources of capital and lower overall premiums. Deepening cat bond markets – which may also be supported by further progress on the EU’s Capital Markets Union – can therefore help to tackle the climate insurance protection gap.
The third rung comprises the important roles played by national governments. As already noted, low insurance coverage means that the public sector often has to provide disaster relief. Public finances would generally benefit from more comprehensive disaster risk management strategies. These make it easier to balance the costs of measures taken before catastrophes occur against the relief provided once they eventually do. Precautionary measures include spending on climate adaptations such as sea walls or irrigation, as well as creating fiscal buffers such as national reserve funds for emergencies. Even with such preparations, fiscal spending will remain an important part of catastrophe relief, especially for cases such as public infrastructure. Governments could also enter into the type of public-private partnerships that already exist in some European countries, either via direct insurance or as reinsurer of last resort. A key objective of policy at this level should be to lower the share of catastrophe losses borne by the public sector, while simultaneously incentivising and improving risk mitigation and adaptation.
The final rung on the ladder is a possible EU-wide public sector scheme covering rarer, but larger, climate-related catastrophes. By providing meaningful reconstruction support to Member States, it could complement and reinforce national measures, and help to more efficiently pool catastrophe risks, which typically hit individual EU countries at different times. Such a scheme would complement the EU’s wider climate policies and existing tools for disaster relief, such as the EU Solidarity Fund, that cannot singlehandedly meet the increasing needs from climate-related catastrophes.
As set out in the Discussion Paper, all these policy options must be carefully designed and implemented so that the behaviour that generates moral hazard does not simply move to a different rung in the ladder. The EU-wide public sector scheme, for example, would need safeguards to ensure Member States also act to improve resilience to catastrophes rather than solely relying on relief from the EU. These safeguards could include partially linking contributions to actual risk exposure and only granting access once Member States have implemented agreed adaptation strategies and met their emissions reduction targets.
It will not be possible to fully insure against all future catastrophe risks, nor would doing so be a good idea if we want to encourage adaptation to climate change. Nonetheless, considering the steps outlined here should help to make Europe more resilient to future catastrophes, and lessen their macroeconomic, financial and fiscal impacts.
Authors:

Casper Christophersen, Margherita Giuzio, Hradayesh Kumar, Miles Parker, Hanni Schölermann et al.[1]

Contact:
The ECB and EIOPA welcome comments and feedback on all aspects of the Discussion Paper. Comments should be sent to ecb_eiopa_staff_protection_gap@eiopa.europa.eu, ideally by 15 June 2023.
For information: The ECB and EIOPA are jointly hosting a workshop on 22 May 2023 where these policy options will be discussed with regulators, policymakers, academics and representatives from the private sector.
Compliments of the European Central Bank.

Footnotes:
1. Nicholai Benalal, Marien Ferdinandusse, Sujit Kapadia, Linda Rousová, Elisa Telesca and Pär Torstensson (ECB), Luisa Mazzotta, Marie Scholer, Pamela Schuermans and Dimitris Zafeiris (EIOPA).
2. See European Commission Press Release (French) and Global Drought Observatory (2022) Drought in Europe – August 2022.
3. See, for example, von Peter, G., von Dahlen, S. and Saxena, S., (2012), “Unmitigated disasters? New evidence on the macroeconomic cost of natural catastrophes”, BIS Working Paper No. 394; Fache Rousová, L., Giuzio, M., Kapadia, S., Kumar H., Mazzotta, L., Parker, M., Zafeiris, D., (2021), “Climate change, catastrophes and the macroeconomic benefits of insurance”, EIOPA Financial Stability Report, July.
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The Council today adopted five laws that will enable the EU to cut greenhouse gas emissions within the main sectors of the economy, while making sure that the most vulnerable citizens and micro-enterprises, as well as the sectors exposed to carbon leakage, are effectively supported in the climate transition.
The laws are part of the ‘Fit for 55’ package, which sets the EU’s policies in line with its commitment to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality in 2050.
The vote in the Council is the last step of the decision-making procedure.
EU emissions trading system
The EU Emissions Trading System (EU ETS) is a carbon market based on a system of cap-and-trade of emissions allowances for energy-intensive industries, the power generation sector and the aviation sector.
The new rules increase the overall ambition of emissions reductions by 2030 in the sectors covered by the EU ETS to 62% compared to 2005 levels.
Maritime transport emissions
Emissions from shipping will be included within the scope of the EU ETS for the first time. Obligations for shipping companies to surrender allowances will be introduced gradually: 40% for verified emissions from 2024, 70% from 2025 and 100% from 2026.
Most large vessels will be included within the scope of the EU ETS from the start, while other big vessels, namely offshore vessels, will be included in the ‘MRV’ regulation on the monitoring, reporting and verification of CO2 emissions from maritime transport first, and only later included in the EU ETS.
Non-CO2 emissions (methane and N2O) will be included in the ‘MRV’ regulation from 2024 and in the EU ETS from 2026.
Buildings, road transport and additional sectors
A new, separate emissions trading system for the buildings, road transport and additional sectors (mainly small industry) has been established, in order to ensure cost-efficient emissions reductions in these sectors, which have thus far proven difficult to decarbonise. The new system will apply to distributors that supply fuels to the buildings, road transport and additional sectors from 2027. A safeguard has been put in place whereby if the price of oil and gas are exceptionally high in the run up to the start of the new system, this will be postponed until 2028.
Emissions from aviation
Free emission allowances for the aviation sector will be gradually phased out and full auctioning from 2026 will be implemented. Until 31 December 2030, 20 million allowances will be reserved to incentivise the transition of aircraft operators from the use of fossil fuels.
The EU ETS will apply for intra-European flights (including departing flights to the United Kingdom and Switzerland), while CORSIA will apply to extra-European flights to and from third countries participating in CORSIA from 2022 to 2027 (‘clean cut’).
Transparency on aircraft operators’ emissions and offsetting will also be improved and a monitoring, reporting and verification framework for non-CO2 aviation effects will be set up. By 1 January 2028, building on the results of that framework, the Commission will propose, where appropriate, mitigation measures for non CO2 aviation effects.
Carbon Border Adjustment Mechanism
The Carbon Border Adjustment Mechanism (CBAM) is a mechanism which concerns imports of products in carbon-intensive industries. The objective of CBAM is to prevent – in full compliance with international trade rules – that the greenhouse gas emissions reduction efforts of the EU are offset by increasing emissions outside its borders through the relocation of production to EU countries where policies applied to fight climate change are less ambitious than those of the EU or increased imports of carbon-intensive products.
Until the end of 2025 the CBAM will apply only as a reporting obligation. CBAM will be phased in gradually, in parallel to a phasing out of the free allowances, once it begins under the revised EU ETS for the sectors concerned. Free allowances for sectors covered by the Carbon Border Adjustment Mechanism – cement, aluminium, fertilisers, electric energy production, hydrogen, iron and steel, as well as some precursors and a limited number of downstream products – will be phased out over a nine-year period between 2026 and 2034.
CBAM promotes the import of goods by non-EU businesses into the EU which fulfil the high climate standards applicable in the 27 EU member states. This will ensure a balanced treatment of such imports and is designed to encourage the EU’s partners in the world to join the EU’s climate efforts.
The Social Climate Fund
The Social Climate Fund will be used by member states to finance measures and investments to support vulnerable households, micro-enterprises and transport users and help them cope with the price impacts of an emissions trading system for the buildings, road transport and additional sectors.
The fund will be funded by revenues mainly from the new emissions trading system up to a maximum amount of EUR 65 billion, to be supplemented by national contributions. It is established temporarily over the period 2026-2032.
Background
The Council today voted on the following laws of the ‘Fit for 55’ package:

Revision of the ETS Directive
Amendment of the MRV shipping Regulation
Revision of the ETS Aviation Directive
Regulation establishing a Social Climate Fund
Regulation establishing a Carbon Border Adjustment Mechanism

Presented by the European Commission on 14 July 2021 under the European Green Deal, the ‘Fit for 55’ package will enable the EU to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and achieve climate neutrality in 2050.
The Council and the European Parliament reached a provisional agreement on ETS aviation on 7 December 2022, on CBAM on 13 December 2022 and on the EU ETS and the SCF on 18 December 2022. The Parliament formally adopted the laws on 18 April 2023.
Next steps
The laws will now be signed by the Council and the European Parliament and published in the EU’s Official Journal before entering into force.
Compliments of the European Council, the Council of the European Union.The post ‘Fit for 55’: Council adopts key pieces of legislation delivering on 2030 climate targets first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

President Biden,
Special Envoy Kerry,
Thank you for convening us today and for your continued leadership on climate action. We are the policy makers who can keep global warming below 1.5 degrees Celsius. And we have the tools! With innovation, science, technology and industrial capacity to achieve this goal. Last year, we Europeans produced more electricity from sun and wind than from gas and any other source. And the world’s electricity system is now cleaner than ever before. We are on the path towards net-zero. But the speed of our progress must accelerate.
This is why the European Union supports the four objectives that you set for this Major Economies Forum. First, we can achieve a net-zero power sector by 2040. Here in Europe, we have just raised our 2030 target for renewables, from 32% up to over 42%. And we also increased our energy efficiency target. Globally, many countries have chosen the same direction of travel. Just last weekend, G7 Ministers highlighted energy efficiency as a key pillar in the global energy transition. As Fatih Birol just showed us: Now the time has come for global action.
That’s why, today, I would like to launch a new initiative to work together towards global targets for energy efficiency, and renewable energy. We could develop these targets by COP28, together with organisations like the IEA. These targets would complement other goals. Such as the phase out of unabated fossil fuels. And the ambitious goals for zero emission vehicles and ships that you mentioned.
Second, we share the goal of reducing deforestation to net zero by 2030. The EU has joined the Forest and Climate Leaders Partnership. And we will invest one billion euros by next year, including through the Amazon Fund.
Third, 150 countries have now joined the Global Methane Pledge that the EU launched together with the US. Now we must all come up with roadmaps to turn pledges into action. In the EU, we are reducing fluorinated gases beyond what is required under the Kigali amendment. And Team Europe will continue to contribute to the Montreal Protocol Multilateral Fund.
Finally, we welcome your initiative on carbon management. The European Commission has proposed a binding European target for carbon storage capacity – to store 50 million tonnes of CO2 per year by 2030.
To conclude: Working together to achieve net zero is a must for the climate, a new frontier for technology, an opportunity for businesses and a driver for good jobs. Thank you.

President von der Leyen

Compliments of the European Commission.The post Statement by President von der Leyen at the Major Economies Forum on Energy and Climate first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

For many people, buying a franchise has proven to be a good choice, but like any other financial decision, there is no one-size-fits-all answer to the question “Is a franchise right for me?” Buying a franchise involves a major financial outlay and owning one often requires an “all in” lifestyle commitment. If you’re thinking about whether your future could be in a franchise, follow the FTC Business Blog for a series we’re calling Franchise Fundamentals. We’ll explore some of the factors to consider as you investigate franchise opportunities. The first topic: debunking myths and misconceptions about becoming a franchisee.
Myth #1: Being a franchisee is the same as owning your own business. Owning a franchise isn’t the same as being a business owner. In fact, the franchisor may control many aspects of your business – for example, your site location, your sales territory, the design of your retail establishment, and the products or services you can (and can’t) sell. Of course, the right franchisor may assist you with training and expertise, but that help comes with a price both in terms of finance and control.
Myth #2: Buying a franchise will give you “be your own boss” status. After years of earning a; salary, many prospective entrepreneurs look to franchise ownership as a way to exercise autonomy. Not so fast. Franchise agreements often give franchisors authority not only over big-picture decisions at the outset, but also over some day-to-day operations – how you can advertise, what your sign must look like, where you buy supplies, etc. If part of your motivation for considering a franchise is to live that “be your own boss” lifestyle, investigate thoroughly first.
Myth #3: Liking a company’s products is the best indicator that you’ll achieve success as a franchisee. Successful franchisees often say it helps to like the product or service, but being a satisfied customer is no guarantee that a franchise is the right fit for you. Some franchises – say, auto repair or tax preparation – require technical expertise or special training. Are the skills you bring to the table a good fit for the franchise? And has your previous work experience given you the financial and management know-how essential for success?
Myth #4: Owning a franchise is an excellent source of passive income. Who unlocks the shop several hours before opening, turns off the lights at the end of a very long day, and is there in between to handle payroll, customer service, and maybe even routine maintenance? It’s often the franchisee. Even franchisees who choose to hire day-to-day managers will likely find that owning a franchise involves a major commitment of time, effort, and resources. That cruise-ship-and-golf-resort image some people have of franchise ownership just doesn’t square with reality.
Myth #5: Owning a franchise is a financial “sure thing.” The only sure thing in franchising or any other business model is that there’s no such thing as a sure thing. Spending your nest egg for a national name isn’t a guarantee of success. Certainly, your skills and commitment factor into the equation, but so do a lot of variables beyond your control – demand for the product or service, competition, and local and national economic conditions, to name just a few. What’s more, under your franchise agreement, you may have to pay the franchisor even if you’re losing money. Those are just some of the intangibles to consider if you’re thinking about a franchise.
Compliments of the Federal Trade Commission.The post FTC | Franchise Fundamentals: Debunking five myths about buying a franchise first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The Commission propose regulation to tackle cyber threats and incidents.
On the 18 April 2023, the Commission has adopted a proposal for the EU Cyber Solidarity Act to strengthen cybersecurity capacities in the EU. It will support detection and awareness of cybersecurity threats and incidents, bolster preparedness of critical entities, as well as reinforce solidarity, concerted crisis management and response capabilities across Member States.
The Cyber Solidarity Act establishes EU capabilities to make Europe more resilient and reactive in front of cyber threats, while strengthening existing cooperation mechanism.  It will contribute to ensuring a safe and secure digital landscape for citizens and businesses and to protecting critical entities and essential services, such as hospitals and public utilities.
The Commission has also presented a Cybersecurity Skills Academy, as part of the 2023 European Year of Skills, to ensure a more coordinated approach towards closing the cybersecurity talent gap, a pre-requisite to boosting Europe’s resilience. The Academy will bring together various existing initiatives aimed at promoting cybersecurity skills and will make them available on an online platform, thereby increasing their visibility and boosting the number of skilled cybersecurity professionals in the EU.
The Commission has also proposed today a targeted amendment to the Cybersecurity Act, to enable the future adoption of European certification schemes for ‘managed security services’.
Commissioner Thierry Breton, responsible for the Internal Market, said:
“Today marks the proposal of a European cyber shield. To effectively detect, respond, and recover from large-scale cybersecurity threats, it is imperative that we invest substantially and urgently in cybersecurity capabilities. The Cyber Solidarity Act is a critical milestone in our journey towards achieving this objective.“
Compliments of the European Commission.The post Cyber: towards stronger EU capabilities for effective operational cooperation, solidarity and resilience first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the Commission adopted two proposals for a Council Recommendation in the context of the European Year of Skills, with the aim to support Member States and the education and training sector in providing high-quality, inclusive and accessible digital education and training to develop the digital skills of European citizens.
The proposals address the two main common challenges jointly identified by the Commission and EU Member States: 1) the lack of a whole-of-government approach to digital education and training, and 2) difficulties in equipping people with the necessary digital skills.
Strengthening key enabling factors
Despite progress and some excellent examples of innovation, combined efforts have so far not resulted in systemic digital transformation in education and training. Member States still struggle to attain sufficient levels of investment in digital education and training infrastructure, equipment and digital education content, digital training (up-skilling) of teachers and staff, and monitoring and evaluation of digital education and training policies.
The proposal for a “Council Recommendation on the key enabling factors for successful digital education and training” calls on all Member States to ensure universal access to inclusive and high-quality digital education and training, to address the digital divide, which has become even more apparent in the light of the COVID-19 crisis. This could be achieved by creating a coherent framework of investment, governance and teacher training for effective and inclusive digital education. It proposes guidance and action that Member States can pursue to implement a whole-of-government and multi-stakeholder approach as well as a culture of bottom-up innovation and digitalisation led by education and training staff.
Improving digital skills teaching
The second common challenge identified relates to the varying levels of digital skills within different segments of the population, and the ability of national education and training systems to address these differences. The proposal for a “Council Recommendation on improving the provision of digital skills in education and training” tackles each level of education and training. It calls on Member States to start early by providing digital skills in a coherent way through all levels of education and training. This can be ensured by establishing incremental objectives and setting up targeted interventions for specific ‘priority or hard-to-reach groups’. The proposal calls on Member States to support high quality informatics in schools, to mainstream the development of digital skills for adults, and to address shortages in information technology professions by adopting inclusive strategies.
The Commission stands ready to support the implementation of both proposals by facilitating mutual learning and exchanges among Member States and all relevant stakeholders through EU instruments, such as the Technical Support Instrument. The Commission also promotes digital education and skills through cooperation within the European Digital Education Hub and through EU funding, such as Erasmus+ and the Digital Europe Programme, the Just Transition Fund, the European Regional Development Fund, the European Social Fund Plus and the Recovery and Resilience Facility, Horizon Europe, and NDICI-Global Europe.
Pilot for a European Digital Skills Certificate
A key action by the Commission will be facilitating the recognition of certification of digital skills. To this end, the Commission will run a pilot project of the European Digital Skills Certificate together with several Member States. The certificate aims to enhance the trust in and acceptance of digital skills certification across the EU. This will help people have their digital skills recognised widely, quickly and easily by employers, training providers and more. The results of the pilot will be presented as part of a feasibility study on the European Digital Skills Certificate towards year-end. The final European Digital Skills Certificate will be rolled out in 2024 based on the pilot’s outcomes and the study’s findings.
Next Steps
The Commission calls on Member States to swiftly adopt today’s proposals for two Council Recommendations.
Building on the successful Structured Dialogue and the group of national coordinators, the Commission will set up a High-Level Group on Digital Education and Skills to support the implementation of the two Recommendations.
Background
The two proposals presented today draw on the conclusions of the Structured Dialogue on digital education and skills, during which the Commission engaged with EU Member States throughout 2022. Through the Digital Decade the EU aims to ensure that 80% of adults have at least basic digital skills and that 20 million ICT specialists are in employment in the EU by 2030. The objective of the dialogue was to increase the commitment on digital education and skills and help accelerate efforts at EU level, so Europe can deliver on its 2030 targets in this area. The proposals are furthermore in line with the solidarity and inclusion key pillar of the European digital rights and principles stating that everyone should have access to the internet and to digital skills, with no one left behind.
The proposals deliver on the two strategic priorities of the Digital Education Action Plan: fostering the development of a high-performing digital education ecosystem and enhancing digital skills and competences for the digital transformation. The Action Plan calls for greater cooperation at European level on digital education to address the challenges and opportunities of the COVID-19 pandemic, and to present opportunities for the education and training community (teachers and students), policy makers, academia and researchers on national, EU and international level. It is a key enabler to realising the vision of achieving a European Education Area by 2025, and contributes to achieving the goals of the European Skills Agenda , the European Social Pillar Action Plan and the 2030 Digital Compass. By promoting and improving digital skills of Europeans, today’s package is also a key deliverable of the European Year of Skills.
The proposal builds on the analysis conducted by the Commission’s Joint Research Centre identifying the main lessons and trends that have emerged through the Structured Dialogue, the Call for Evidence and the Resilience and Recovery Plans by EU Member States.
Compliments of the European Commission.The post EU Commission calls for massive boost in enabling digital education and providing digital skills first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.