1. Commission Revamps Agri-Food Marketing Standards for Consumer Needs and Sustainability

The European Commission is proposing to revise marketing standards for various agri-food products including fruits, vegetables, fruit juices, jams, honey, poultry, and eggs to support informed consumer choices and prevent food waste. Key proposals include:

• Origin labelling: A mandatory requirement to label the country of origin on honey, nuts, dried fruits, ripened bananas, and processed fruit and vegetables. This aims to increase transparency and promote EU production.
• Food waste: Revisions address food waste and packaging waste. “Ugly” fruits and vegetables suitable for local consumption will be exempt from marketing standards, offering consumers cheaper options and benefiting local producers. Safe products affected by natural disasters may also be sold.
• Packaging: Products for donation may be exempt from main labelling requirements to reduce red tape and facilitate donations.
• Fruit juices: Labels may state “with no added sugars” to clarify that fruit juices cannot contain added sugars. Reformulated fruit juice may be labelled as “reduced-sugar fruit juice”. The term “coconut water” may be used alongside “coconut juice”.
• Jams and marmalades: The minimum fruit content of jams will be increased, providing consumers with less sugar and more fruits. The term “marmalade” will be allowed for all jams.
• Eggs: Solar panels may be used in free-range egg production to encourage renewable energy. Eggs will be marked at the farm to improve traceability.

Next Steps:
The proposals will undergo public feedback and scrutiny by the European Parliament and the Council. Alongside this, the Commission plans to adopt new marketing standards for cider, perry, and pulses.

EU marketing standards aim to maintain high-quality products, protect consumers, and ensure consistency within the EU market. They also facilitate international trade. As agricultural markets evolve due to innovation and changing consumer demands, these proposals aim to promote sustainable products and address new consumer and operator needs.

Alber & Geiger can assist agriculture firms achieve their legislative and regulatory goals in the EU.

2. Commission Proposes Criteria to Fight Greenwashing and Deceptive Environmental Claims

The European Commission is proposing common criteria to prevent greenwashing and misleading environmental claims. The proposal aims to ensure that when a product or service is marketed as environmentally friendly, it truly is. It is intended to help consumers make informed choices and to ensure a level playing field for businesses truly committed to sustainability.

The proposal comes in the wake of a 2020 study that found over half of the environmental claims examined in the EU to be vague, misleading, or unfounded. The lack of common rules for voluntary green claims has led to ‘greenwashing’ and unfair competition.

Under the proposal, companies making ‘green claims’ will have to meet minimum standards in substantiating and communicating these claims. This includes explicit claims like ‘T-shirt made of recycled plastic bottles’ or ‘packaging made of 30% recycled plastic.’ The proposal also seeks to regulate the proliferation of labels and environmental labels. Any claims must be independently verified and backed by scientific evidence.

Aggregate scoring of a product’s overall environmental impact will not be permitted unless set in EU rules. Comparisons between products or organizations should be based on equivalent data. Moreover, new public labeling schemes will only be permitted if developed at EU level, and new private schemes must show greater environmental ambition than existing ones and get pre-approval.

Next Steps

The proposal is part of a wider package of the European Green Deal and complements the March 2022 proposal on ’empowering consumers for the green transition.’ It will be subject to approval by the European Parliament and the Council.

Our experienced team can help influence opinions and agendas.

3. Global Pact Reached for High Seas Biodiversity Protection

The global community has reached a landmark agreement, the Treaty of the High Seas, aimed at protecting the ocean, addressing environmental degradation, combating climate change, and preventing biodiversity loss. The treaty will facilitate the creation of extensive marine protected areas on the high seas, in line with the Kunming-Montreal Global Biodiversity Agreement’s commitment to protect at least 30% of the ocean by 2030. Additionally, the treaty mandates assessment of the impact of economic activities on biodiversity in high seas and includes provisions for capacity-building and technology transfer to aid developing nations. The treaty also provides a framework for equitable sharing of benefits from marine genetic resources.

This treaty was finalized at the 5th Intergovernmental Conference in New York, marking over a decade of global efforts to address this critical environmental issue. The EU and its Member States spearheaded the High Ambition Coalition, comprising 52 nations committed to ambitious ocean protection actions.

The treaty will come into effect once ratified by 60 states. The EU has committed €40 million to a Global Ocean Programme to expedite this process and aid developing countries in preparing for implementation. The formal adoption will occur once legal review in UN languages is complete.

High seas, covering nearly two-thirds of the world’s ocean and seabed beyond national jurisdiction, offer significant ecological, economic, social, and food security benefits. These regions are currently under significant strain from pollution, overexploitation, climate change, and biodiversity loss. This new treaty, an Implementing Agreement under the United Nations Convention on the Law of the Sea (UNCLOS), aims to protect and sustainably use these critical resources.

Alber & Geiger can help maritime and environmental organizations voice their interests and concerns regarding the High Seas Treaty to EU policymakers.

4. EU Commission Proposes Reform to Enhance Renewables and Consumer Protection

The European Commission has proposed a significant reform to the EU’s electricity market design aimed at expediting the shift to renewable energy and phasing out gas. This transformation aims to decrease consumer bills’ reliance on fluctuating fossil fuel prices, protect consumers from potential price hikes and market manipulation, and promote clean industry competitiveness within the EU.

The EU has successfully maintained an integrated electricity market for over two decades, providing security of supply, stimulating decarbonisation, and offering consumers the economic benefits of a single energy market. The energy crisis from Russia’s Ukraine invasion underscores the need to adapt the electricity market for the green transition, securing affordable, renewable power for households and businesses.

The proposed reform includes revisions to the Electricity Regulation, the Electricity Directive, and the REMIT Regulation. These changes introduce measures promoting longer-term contracts with non-fossil power production and incorporate more clean flexible solutions into the system to compete with gas. This will result in a decrease in the impact of fossil fuels on consumer electricity bills and ensure that the lower cost of renewables is reflected in the final cost.

In addition, the proposed reform will enhance competition in the European wholesale energy markets by improving market transparency and integrity. It will also improve consumer protections, offering a wider choice of contracts and clearer information, enabling consumers to secure long-term prices and avoid excessive risk and volatility.

Lastly, the reform aims to boost industrial competitiveness by enhancing the predictability and stability of energy costs. It proposes the deployment of more stable long-term contracts such as Power Purchase Agreements (PPAs) and obliges Member States to ensure the availability of market-based guarantees for PPAs.

The proposed reform will now be debated and agreed upon by the European Parliament and the Council before it can be enacted

Alber & Geiger can ensure renewable energy firms’ interests are heard and considered as the EU’s electricity market undergoes transformation.

5. Commission Presents Regulations for Renewable Hydrogen

The European Commission has proposed detailed regulations defining renewable hydrogen in the EU, with the adoption of two Delegated Acts required under the Renewable Energy Directive. These Acts, part of a broader EU regulatory framework for hydrogen, will ensure that all renewable fuels of non-biological origin (RFNBOs) are produced from renewable electricity. The legislation will provide regulatory certainty for investors, aligning with the EU’s goal to reach 10 million tonnes of domestic and imported renewable hydrogen production as per the REPowerEU Plan.

The first Delegated Act establishes conditions under which hydrogen can be considered as an RFNBO, clarifying the principle of “additionality” for hydrogen. This principle ensures that renewable hydrogen generation boosts the volume of renewable energy available to the grid and supports decarbonisation and electrification efforts.

The Act also introduces criteria ensuring that renewable hydrogen is produced only when and where sufficient renewable energy is available. The rules will be gradually phased in, with provisions for hydrogen projects operating before 1 January 2028 and a transition period for electrolysers entering the market.

The second Delegated Act provides a methodology for calculating life-cycle greenhouse gas emissions for RFNBOs, considering emissions across the full lifecycle of the fuels. The Acts, following adoption, will be transmitted to the European Parliament and the Council for scrutiny and potential approval or rejection.

The Commission’s hydrogen strategy, adopted in 2020, envisions a comprehensive European hydrogen ecosystem, from research and innovation to production and infrastructure. Hydrogen is expected to play a significant role in decarbonising industry and heavy-duty transport in Europe and globally.

Alber & Geiger can get your message to the appropriate audience.

6. Securing EU’s Green & Digital Future with Critical Raw Materials

The European Commission has presented a comprehensive set of measures aimed at ensuring a secure, diverse, affordable, and sustainable supply of critical raw materials for the European Union (EU). Critical raw materials are essential for various strategic sectors, including the net-zero industry, digital industry, aerospace, and defense sectors. Currently, the EU heavily relies on imports of these materials, often from quasi-monopolistic suppliers in third countries. The proposed regulations seek to mitigate the risks associated with such dependencies and enhance the EU’s economic resilience.

The Act establishes clear priorities for action by updating the list of critical raw materials and introducing a list of strategic raw materials. The Act sets benchmarks for domestic capacities along the supply chain, aiming to achieve a minimum of 10% extraction, 40% processing, and 15% recycling of the EU’s annual consumption of strategic raw materials by 2030. It also limits the share of each strategic raw material from a single third country to no more than 65% at any relevant processing stage.

The Act aims to create secure and resilient EU supply chains for critical raw materials by reducing administrative burdens and simplifying permitting procedures. Strategic Projects will receive support for access to finance and shorter permitting timeframes. Member States will develop national programs for exploring geological resources.

To mitigate supply risks, the Act includes provisions for monitoring critical raw material supply chains and coordinating strategic raw material stocks among Member States. Large companies will be required to conduct audits of their supply chains, including stress tests. The EU aims to diversify its imports of critical raw materials through global engagement and partnerships with reliable countries. It will establish a Critical Raw Materials Club for like-minded countries, strengthen the World Trade Organization, and expand sustainable investment facilitation agreements and free trade agreements. The EU will also take trade actions to combat unfair practices.

Next Steps

The proposed Regulation will undergo discussions and agreements in the European Parliament and the Council of the European Union before its adoption and entry into force. These measures, along with other initiatives, will contribute to the EU’s efforts to achieve its climate and digital objectives and enhance the competitiveness of European industries.

Our team enjoys long-lasting relationships and understands the complexities to help shape decisions.

7. Net-Zero Industry Act: Boosting Clean Tech Manufacturing and Green Jobs

The European Commission has launched the Net-Zero Industry Act, a part of the Green Deal Industrial Plan, to scale up clean technology manufacturing and secure a sustainable energy future for the EU. It aims to reach a 40% domestic production capacity of net-zero technologies by 2030, to accelerate the EU’s climate goals, strengthen industries, and create quality jobs.

Ursula von der Leyen, President of the European Commission, emphasized that the Act will create a conducive environment for clean energy sectors crucial for achieving net-zero by 2050, like wind turbines, solar panels, renewable hydrogen, and CO2 storage.

The Act targets technologies essential for decarbonization, including solar and wind energy, batteries and storage, heat pumps, geothermal energy, and others. It also introduces measures to stimulate investment in net-zero technology manufacturing, improve market access, and foster innovation.

Additionally, the Act includes plans for the European Hydrogen Bank to promote renewable hydrogen production within the EU and incentivize its imports.

Next Steps

The proposed Regulation will undergo discussions and agreements in the European Parliament and the Council of the European Union before its adoption and entry into force. These measures, along with other initiatives, will contribute to the EU’s efforts to achieve its climate and digital objectives and enhance the competitiveness of European industries.

Alber & Geiger – Ensuring your voice is heard in the EU’s clean energy transformation.

8. New Consumer Rights: Commission Introduces Easy and Attractive Right to Repair

The European Commission has put forward a proposal to promote the repair of goods, aiming to benefit consumers and contribute to the goals of the European Green Deal by reducing waste. In the past, replacement has been prioritized over repair, and consumers have lacked incentives to repair goods after the legal guarantee expires. The new proposal seeks to make repair more accessible and cost-effective for consumers, while also stimulating the repair sector and encouraging sustainable business models from producers and sellers.

The proposal includes measures to facilitate repair and reuse. Within the legal guarantee period, sellers will be required to offer repair unless it is more expensive than replacement. Beyond the legal guarantee, consumers will have the right to claim repair from producers for products that are technically repairable under EU law. This ensures that consumers have options for repair and encourages producers to adopt more sustainable practices.

Additional tools and rights will be available to consumers, including a matchmaking repair platform to connect them with repairers and sellers of refurbished goods. An online platform will provide information about repair services and enable consumers to compare offers. A European quality standard for repair services will also be developed to help consumers identify repairers who meet minimum quality standards.

The proposal will need to be adopted by the European Parliament and the Council before it can be implemented. If approved, it will promote a shift towards repair and reduce waste, benefiting consumers and supporting the objectives of the European Green Deal.

I. EU Busy as a Bee to Save Pollinators

In an attempt to reverse the decline of pollinators by 2030, the European Commission (EC) presented ‘A New Deal on pollinators’. The initiative launched by late January consists of a newly proposed strategy that revises the 2018 EU Pollinators Initiative.

The EC acknowledged the growing concern of citizens on the alarming situation of wild pollinators such as bees, butterflies, hoverflies, and other insects. “Citizens have been increasingly calling for decisive action against pollinator loss, also through the recent successful European Citizens’ Initiative ‘Save Bees and Farmers’,” the EC noted when introducing the initiative.
Based on the official communication from the EC, the contribution of pollinators to the EU’s agricultural output is estimated to be at least EUR 5 billion per year. However, most of the benefits provided by pollinators remain unquantified. Further on, one in ten bees and butterfly species, and one in three hoverfly species are threatened with extinction.

“The major threats to wild pollinators include land-use change (including urbanization), intensive agricultural management practices (including pesticide use), environmental pollution (including light pollution), invasive alien species, and climate change,” the EC noted in the communication.

The revised initiative will set objectives and actions under three priorities that are going to address the above-mentioned concerns and much more.

1. Firstly, by improving knowledge of pollinator decline, its causes, and consequences
2. Secondly, by improving pollinator conservation and tackling the causes of their decline
3. Third, by mobilizing society and promoting strategic planning and cooperation at all levels

What’s next?
The EC invites the European Parliament and the Council to endorse the new actions and to be actively engaged in its implementation, in close collaboration with all relevant stakeholders. The new actions will complement future National Restoration Plans where Member States will identify the measures to achieve the legally binding target of reversing the decline of pollinator populations by 2030.

Our team can guide you through the legislative changes being considered to maximise the impact of your positions in the European decision-making process, and to put you in a position to benefit from them.

II. New Tax Transparency Rules for Crypto Providers Serving European Residents Proposed

The European Union is hurrying up to keep pace with the fast-changing crypto asset sectors and fight crypto-related tax fraud with new rules.

It’s a fact that Bitcoin’s market capitalization reached up to EUR 370 billion in January 2023, almost close to Austria’s GDP. Yet Bitcoin is one among over 9,000 crypto-assets available on the market. Hence, the EC sees the need to address the growing crypto-related challenges faced by tax authorities.

A new proposal from the European Commission would require service providers that facilitate crypto transactions for residents in the European Union to share information with tax authorities. The new reporting framework, which would complement the Markets in crypto-assets (MiCA) Regulation, would help tax authorities in member states to detect and counter tax fraud, tax evasion, and tax avoidance. They would do it by tracking the crypto assets and the proceeds gained.
Moreover, the EC estimates that the new reporting framework could raise additional tax revenue between EUR 1 and EUR 2.4 billion per year.

The set-up of this reporting framework would require the amending of the Directive on Administrative Cooperation (DAC). EU’s DAC dates back to 2011 and it deals with the collection and exchange of tax-related information between Member States. The latest proposal would be the eighth revision of the DAC or simply DAC8. None of the previous seven revisions of the DAC covers crypto markets.

What entities will have to share information?
Based on the proposal, two types of entities will be obliged to report to tax authorities.

Crypto-asset providers: any legal person or undertaking whose professional activity is the provision of one or more crypto-asset services to third parties. The definition used in DAC8 is the same as that of MiCA.
Crypto-asset operators: a provider of crypto-asset services other than a crypto-asset service provider. These operators do not fall within the scope of MiCA

What’s next?
The proposed directive is subject to a special legislative procedure, requiring unanimous support in the Council, following consultation of the European Parliament and the European Economic and Social Committee.
If enacted, the new reporting framework with regard to crypto-assets, e-money, and digital currencies would enter into force on January 1st, 2026.

Alber & Geiger can advise in matters of consumer and privacy protection in crypto in the onset of the new regulatory package and help you maintain your rights and anonymity.

III. EC Takes Action to Unlock Algae’s Full Potential

For those asking how green the bioeconomy is, the European Union is introducing the greenest player in the game. Without assuming that all algae are green, the sure thing is that seaweed is the new gold of the green economy.

The European Commission adopted a communication that proposes 23 new actions that would unlock the potential of algae as a renewable resource in Europe. Those actions aim at improving business environments, increasing social awareness and acceptance of algae and algae-based products by consumers, and closing the knowledge, research, and technology gaps.

“The farming of algae can contribute to achieving the EU’s objectives in terms of decarbonization, zero pollution, circularity, the preservation and restoration of biodiversity, the protection of ecosystems, and the development of environmental services,” the communication noted.

While algae sectors remain untapped in Europe, the European demand for seaweed could increase from around 270 000 tons in 2019 to 8 million tons in 2030 and reach EUR 9 billion in value in 2030 across all sectors, with feed, food, and plant biostimulants (fertilizing products) being the largest. The EC recognizes the potential of the European algae sector for becoming a significant part of the EU blue bioeconomy.

Some of the above-mentioned key actions include:
• Developing a new algae farmers’ toolkit;
• Facilitating access to marine space, identifying optimal sites for seaweed farming, and including seaweed farming and sea multi-use in maritime spatial plans;
• Together with the European Committee for Standardisation (CEN), developing standards for algae ingredients and contaminants, as well as for algae biofuel;
• Assessing the market potential, efficiency, and safety of algae-based materials when used in fertilizing products;
• Examining the algae market and proposing market-stimulating mechanisms to support the transfer of technology from research to market;
• Funding pilot projects for career reorientation and supporting innovative SMEs and projects in the algae sector;
• Conducting studies and discussions to gain better knowledge, amongst others, on
• seaweed climate change mitigation opportunities and the role of seaweed as blue carbon sinks, define maximum levels of contaminants and iodine in algae;
• Supporting, through Horizon Europe and other EU research programs, the development of new and improved algae processing systems, novel production methods, and algae cultivation systems;
Promoting awareness-raising actions and analyzing the availability of algae-related data.

What’s next?
The Commission will discuss the communication with the European Parliament and the Council. The Commission will coordinate putting the 23 actions into practice with the Member States, industry (e.g. via the EU4Algae Forum), and other relevant stakeholders. The Commission will prepare a report assessing progress in implementing the Communication by the end of 2027.

IV. EC Registered a Citizens’ Initiative on Vegan Food Availability

What would you think about having vegan meal options available everywhere? The organizers of a European Citizens’ Initiative are asking for an EU law for vegan meal availability. The initiative registered by the European Commission back in October 2022 requires that all private and public food and beverage places in Europe have a vegan alternative available. The organizers highlight that such a law would bring great benefits to the planet concerning the mitigation of the climate crisis, deforestation, wildlife species extinction, use of land, protection of marine life, malnourishment, and food waste.

According to the initiative details, the presence of a vegan option would push a change toward a fairer world for people, animals, and the environment as well as a change in production and consumption needs.
Moreover, the law would allow easy access to vegan alternatives and to expect the vegan cruelty-free choice, the right to choose how to eat, to be kind to animals, etc.
Further on, another advantage of the vegan alternative would be the reduction of animal suffering and food costs.
“We urgently need action rather than empty words. We know what needs to be done. What is missing is the political will to take a new approach and a real commitment,” the Vegan Meals initiative organizers noted.

What’s next?
Following registration, the organizers have six months to open the signature collection. This means that the signature process must open by April. If a European Citizens’ Initiative receives one million statements of support within one year, from at least seven different Member States, the Commission will have to react. The Commission could decide whether to take the request forward or not and will be required to explain its reasoning.

V. EU Adopts Drone Strategy 2.0

The European Union is acting to speed up the use and further develop unmanned aircraft technology and its regulatory framework. The adoption of the European Drone Strategy 2.0 lays out how Europe can pursue large-scale commercial drone operations while offering new opportunities in the sector.
“With the right framework in place, the drone services market in Europe could by 2030 reach a value of €14.5 billion, with a compound annual growth rate of 12.3%, and create 145,000 jobs in the EU,” the Commission pointed out in its official communication.

However, before pushing ahead with these innovative technologies, the Commission wants to ensure that society supports drones. To address concerns over noise, safety, and privacy, the Strategy, therefore, calls for national, regional, and local municipalities to ensure that drone services are aligned with citizens’ needs.
According to the strategy, drones and their required ecosystem will have become an accepted part of the life of EU citizens by 2030.

They will be used to provide numerous services to the benefit of diversified civilian and defense end-users, including EU citizens, organizations, Member States, and industry. Drones’ aerial operations will include emergency services, inspections, and surveillance using drones to gather data, as well as for the delivery of goods.
Meanwhile, IAM services will start providing regular transport services to passengers, initially using aircraft with a pilot on board but with the ultimate aim to fully automate their operations.

“Unleashing the potential of the EU drone market and services requires the identification of critical technology building blocks, such as artificial intelligence, robotics, semiconductors and EU space services and mobile telecommunications. This will help the EU build an innovative and competitive drone sector, reducing strategic dependencies,” the Commission highlighted.

Our team can assist you in getting ahead of concrete provisions of EU regulations to tailor them to your business interests to the highest possible extent.

VI. EU to Increase Carbon Sequestration with Forests and Soil

The European Union is turning toward the apparent solution of reducing net greenhouse emissions, by expanding the sink capacity of forests and soil for carbon capture and storage. The EU agreed on a provisional deal the on the Land Use, Land Use Change and Forestry (LULUCF) to increase the EU’s target for net carbon removals by natural sinks to 310 million tons of CO2 equivalent by 2030.

The LULUCF sector covers the use of soils, trees, plants, biomass, and timber and is responsible for both emitting and absorbing CO2 from the atmosphere.

Among various LULUCF activities, reducing deforestation has the largest potential to reduce anthropogenic GHG emissions, followed by carbon sequestration in agriculture and ecosystem restoration including afforestation and reforestation.
According to the provisional agreement, the current rules under which emissions do not exceed removals (the “no debit rule”) will continue to apply until 2025. For the period from 2026-2030, where removals should exceed emissions, each member state will have a binding national target for 2030.

Member States have many measures at hand to improve their land management, including sustainable forest management or the rewetting of peatlands, and should update their strategic plans under the Common Agricultural Policy (CAP) to reflect the higher ambition for the land sector.

Moreover, the agreement maintains overall general flexibility to support those member states that have difficulties in meeting their targets owing to natural disturbances (such as wildfires, pests, and the effects of climate change and organic soils on emissions), provided that the Union as a whole meets its 2030 target.

This agreement is another step in the adoption of the Commission’s ‘Fit for 55′ legislative package to deliver the EU’s climate ambition under the European Green Deal.

What’s next?
The provisional agreement now requires formal adoption by the Parliament and the Council.
The Commission will submit a report within six months of the first global stocktake under the Paris Agreement (to be carried out in 2023), on including non-CO2 greenhouse gas emissions from agriculture in the scope of the regulation and the setting of post-2030 targets for the land-use sector.

Alber & Geiger can utilize its extensive European network to represent your business interests and propose legislative amendments on your behalf.

VII. EU and Chile Strengthen Political and Trade Partnership

European Union and Chile have concluded negotiations on the EU-Chile Advanced Framework Agreement.

“This landmark agreement is of key geopolitical importance: with the new Advanced Framework Agreement, the EU and Chile take their partnership to the next level to strengthen political dialogue, deepen cooperation and foster trade and investment opportunities,” the European Commission noted.

Further, the agreement puts shared values such as human rights, sustainable trade, and gender equality at the core of EU-Chile relations and it strengthens EU-Chile cooperation on shared global challenges, such as the fight against climate change and the environment.

Among others the agreement defines the following:
• 99,9% of EU exports will be tariff-free, which is expected to increase EU exports to Chile by up to 4,5 billion euros.
• Greater access to raw materials and clean fuels is crucial for the transition to the green economy, such as lithium, copper, and hydrogen.
• Easier for EU companies to provide their services in Chile, including delivery, telecommunications, maritime transport, and financial services.
• Same treatment for EU investors in Chile as for Chilean investors, including in the energy and raw material sector, and vice versa.
• New full-fledged articles on democratic principles, human rights, and rule of law enshrine core shared values at the heart of EU-Chile cooperation.
• Extending the political dialogue to include international peace, justice, and security.
• A renewed focus on science, technology, research, and innovation.

What’s next?

The EU-Chile agreement will consist of two legal instruments, the Advanced Framework Agreement and an Interim Free Trade Agreement (iFTA). Both the EU and Chile will proceed with the legal verification of the agreement. Following that, the EU will propose the Advanced Framework Agreement and the iFTA for conclusion and ratification.

Our team can assist you in getting ahead of concrete provisions of EU regulations to tailor them to your business interests to the highest possible extent.

I. COMMISSION TAKES ACTION ON 11 MEMBER STATES CONCERNING SINGLE-USE PLASTICS

Transition to a circular economy that replaces conventional business models and products with innovative and sustainable ones goes through a single-use plastics purge in the EU. Still, not all member countries have been keeping the same pace on transposing the Single-Use Plastic Directive into their national laws.

As a consequence, the Commission took legal steps against Belgium, Croatia, Denmark, Estonia, France, Ireland, Latvia, Poland, Portugal, Slovenia, and Finland. Those countries have not communicated to the Commission the necessary measures to guarantee the full transposition of the Directive.

The latter aims to avert and reduce the impact of single-use plastic products on the environment in general, and on the marine environment and human health in particular. The Directive is a key element of the Commission’s Plastic Strategy and the Circular Economy Action Plan.

To this end, the legislation includes several measures that reduce consumption of specific plastic products that are used once and for short periods, limit placing certain products on market, and other specific product requirements.

Under the Green Deal, Europe needs to meet its environmental objectives.
The aforementioned countries failed to fully transpose the Directive by the deadline. Therefore, the Commission sent them a letter of formal notice and a reasoned opinion to each of them.

France and Denmark were given two months to respond and address the shortcomings raised by the Commission. Meanwhile, the other nine countries that had received a letter of formal notice in January 2022, have not communicated the measures to ensure the transposition of the directive. They were given two months to respond and take measures. If not, the Commission may decide to refer the cases to the Court of Justice.

Alber & Geiger can help you represent your business interests and ensure your voice is heard by legislators.

II. EU ADOPTS MEDIA FREEDOM ACT

Disinformation, propaganda and state-controlled media are real threats to media pluralism and independence, especially in the digital age. Stressing the need for a free press, the Commission decided to tackle all forms of control and pressure over media with the European Media Freedom Act (EMFA). The novel set of rules, both rights, and duties of media players will protect journalists and editorial independence in private and public media services. Further on, it will ensure that media can operate without political interference and spyware while achieving public transparency on ownership of media outlets.
Besides the regulation, the EMFA comprises a Recommendation, which is not a binding legislative act. The Recommendation provides a toolbox of voluntary measures for media companies on editorial independence.
Moreover, the Commission proposed to set up a European watchdog, which will replace the existing one established under the Audiovisual Media Services Directive. The new watchdog will consist of a board of representatives of national regulatory authorities. The Board will have various tasks to wit: promoting a consistent application of the EU media law framework, issuing an opinion on national measures and decisions affecting media markets, coordinating national regulatory rules on non-EU media that pose a risk to public security, etc.
Next, European legislators, the EU Parliament, the Council, and the Commission will negotiate the text of the regulation. Media stakeholders should observe closely this legislation, as it will have a substantial impact on the EU media landscape.

Our experienced team can help you maximize the impact of your position in the European decision-making process and represent your interests in ensuing legislative process.

III. EU PREPARES RULES ON LIABILITY FOR AI

For Artificial Intelligence to thrive in the European Union, citizens must trust digital innovations.

The Commission adopted for the first time a proposal on AI liability rules that would set out a framework for excellence and trust in AI. Based on the new rules, victims of AI-related damage (be it individuals or businesses) will be eligible for the same standards of protection as they would if harm was caused under any other circumstances. Thus they will have the right to seek compensation for damages caused by AI systems.
The AI liability rules were adopted along with another proposal on updating the existing Product Liability Directive. Both proposals aim at modernizing EU liability rules conforming to the digital age, circular economy, and the impact of value chains. They include changes to existing rules and new sets of rules on strict liability, damages, and compensations.

As noted by the Commission, the purpose of the AI Liability Directive is to lay down uniform rules for access to information and alleviation of the burden of proof concerning damages caused by AI systems, establishing broader protection for victims, and fostering the AI sector by increasing guarantees.

Further on, the AI directive will harmonize certain rules for claims outside of the scope of the Product Liability Directive in cases of damage due to wrongful behavior such as breaches of privacy or damages caused by safety issues.

The Commission highlighted that the new rules strike a balance between protecting consumers and fostering innovation, removing additional barriers for victims to access compensation, while laying down guarantees for the AI sector by introducing, for instance, the right to fight a liability claim based on a presumption of causality.

Next, the proposal will need adoption by the European Parliament and Council.

Our team of experts can aid in benefiting from rule-changes and navigate the new legislative environment with ease.

IV. COMMISSION ACTS ON ASBESTOS-FREE FUTURE

Asbestos is not a problem of the past, and the Commission is acting to completely avoid it in the future. The dangerous substance was banned in the EU in 2005, yet it remains a threat to the health of workers and people exposed to asbestos products that were used in older buildings. The Commission noted that around 78 percent of occupational cancers recognized in the Member States are related to asbestos.

In October 2021, the European Parliament adopted a resolution calling for a European strategy for the removal of all asbestos.

Now the Commission drafted a comprehensive package on better protecting people from asbestos and ensuring an asbestos-free future.

The package includes a Communication on a European lifecycle approach to asbestos. It focuses on the protection of human health and the environment, in particular in implementing the European Green Deal and Europe’s Beating Cancer Plan. It spans the action needed to identify asbestos present in buildings, register the information, and safe removal or treatment of asbestos-containing waste while maximizing the protection of workers.

Moreover, the Communication focuses on improving the diagnosis and treatment of asbestos-related diseases.

The second component of the package is a proposal to amend the Asbestos at Work Directive to lower the occupational exposure limit value to asbestos; upgrade guidelines to support the Member States, employers, and workers in implementing the new directive; launch an awareness raising campaign on the safe removal of asbestos.
Next, the proposal will be discussed by the European Parliament, and the Member States with the Commission calling for swift approval. Once adopted. Member States will have two years to transpose the directive into national law.

Alber & Geiger can utilize its extensive European network to represent your business interests and propose legislative amendments on your behalf.

V. Commission Proposes Emergency Interventions in Energy Markets

Gas and electricity prices have reached record levels in 2022 and hit all-time highs following the Russian invasion of Ukraine. In response to the worsening situation in the energy market, the Commission published a proposal for exceptional electricity demand reduction measures as well as measures to redistribute the energy sector’s surplus revenues to final customers. The proposal aims at reducing the cost of electricity for consumers and ensuring supply during winter. Four measures are expected to achieve those goals: reduction of electricity demand, a temporary revenue cap on ‘inframarginal’ electricity producers, temporary solidarity contribution on excess profits generated from activities in the oil, gas, coal, and refinery sectors, and regulated prices to also cover small and medium-sized enterprises.

Moreover, the Commission stated that it will deepen its discussion with the Member States about the best ways to reduce gas prices, also analyzing various ideas for price caps and enhancing the role of the EU Energy Platform in facilitating lower price agreements with suppliers through voluntary joint purchasing.

Our team can assist you in getting ahead of concrete provisions of EU regulations to tailor them to your business interests to the highest possible extent.

VI. CEU APPROVES FIRST CAP STRATEGIC PLANS

The new Common Agricultural Policy is due to begin in 2023 and the Commission took an important step for the implementation of the policy by adopting the first package of CAP strategic plans for seven countries. Denmark, Finland, France, Ireland, Poland, Portugal, and Spain are the first that got their strategic plans approved, while the Commission stated that it is committed to quick approval of the 21 remaining plans. The seven plans represent a budget of over €120 billion, including over €34 billion dedicated exclusively to environmental and climate objectives and eco-schemes.

The new CAP policy is designed to shape the transition to a resilient, sustainable, and modern European agricultural sector. It will integrate a more effective way of working. It will provide that funding is distributed to medium and small-sided family farms, as well as to young farmers. They will be supported to take up innovations. Moreover, the CAP policy will allow for increased flexibility for the Member Countries to adapt measures to local conditions.

As noted by the Commission, the new CAP can be the cornerstone for food security and farming communities in the European Union.
The Plans will be in line with EU legislation and should contribute to the EU’s climate and environmental goals, including on animal welfare, as set out in the Commission’s Farm to Fork and Biodiversity strategies.

The CAP can also promote afforestation, fire prevention, restoration, and adaptation of forests. Farmers participating in eco-schemes may be rewarded, inter alia, for banning or limiting the use of pesticides and limiting soil erosion. Between 86% and 97% of the national utilized agricultural area will be farmed under good agricultural and environmental conditions.
Common Agricultural Policy 2023-2027: the Commission approves the first CAP strategic plans

VII. EU REGISTERS NEW INITIATIVE ON TOBACCO

The Commission registered a European Citizens’ Initiative that calls for rules that end the sale of tobacco and nicotine products to citizens born in 2010 onwards as well as measures on cigarette butt-free free beaches and national parks, extended outdoor vapor-free spaces, tobacco advertising, and its presence on audiovisual productions and social media, especially addressing covert advertising through influencers and product placement.

The European Citizens’ Initiative is entitled ‘Call to achieve a tobacco-free environment and the first European tobacco-free generation by 2030′. It aims at protecting younger generations from tobacco addiction and taking action against smoking and tobacco-related environmental damage.

The Commission considered the initiative legally admissible as it fulfilled all the formal conditions.

However, registration does not prejudge the final legal and political conclusions of the Commission on this initiative and the action it will intend to take, if any, in case the initiative obtains the necessary support.
The organizers have six months to open the signature collection. The Commission will have to act if the initiative receives 1 million statements of support within 1 year, from at least 7 different Member States.

VIII. EU EASED ENVIRONMENTAL RULES TO INCREASE CEREAL PRODUCTION

The Commission proposed a short-term suspension of EU crop rotation rules to increase cereal production and address strong risks related to food security following the impacts of the war in Ukraine.

The request that came from several Member States is estimated to put 1.5 million hectares of land back into production. Normally, those farmland areas would be left aside for soil quality preservation and improvement of biodiversity.

The derogation is limited and will apply only in 2023 and is restricted to what is strictly necessary to address global food security concerns. Thus, plants used for feeding animals like maize and soya are excluded.

“Every tonne of cereals produced in the EU will help to increase food security worldwide,” the Commission statement pointed out.

Moreover, it is added that the proposal was a result of careful balancing between global food availability and affordability on one hand, and the protection of biodiversity and soil health on the other. The Commission stressed that the transition to a resilient and sustainable agricultural sector in line with the Farm to Fork and Biodiversity Strategies, and the Nature Restoration Law must continue despite the situation.

IX. EU PROPOSES NEW RULES ON SUBSTANCES OF HUMAN ORIGIN

The European regulatory framework on standards of quality and safety for substances of human origin (SoHO) intended for human application will align with developments in the sector over the last 20 years. Even though the current legislation adopted in 2002 and 2004 has improved the safety and quality standards related to SoHO, shortcomings, and gaps have been identified.

Thus, the Commission published a proposal that will repeal the Blood Directive and the Tissues and cells Directive.

As noted by the Commission, with the new regulation citizens will be safer in donating or receiving vital substances of human origin (SoHO). The latter includes blood, cells, tissues, and other substances such as breast milk or microbiota. Meanwhile, solid organs will remain regulated under the Organs Directive.

The new regulation will aim at facilitating the cross-border circulation of SoHO, reinforcing solidarity between health authorities, ensuring a supply of critical substances, implementing digital-ready policies, and promoting innovation and high standards of safety and quality.

Next, the proposal will be discussed in parallel by the Council and the European Parliament until the final text is agreed upon. Upon adoption and publication, most provisions will come into force after a transition period of two years, while a three-year transition period will apply for particular provisions.

I. EU to Propose a Nature Restoration Law

Biodiversity has been a topic that has recently been getting more attention within the EU sphere. After three decades since any major legislative efforts, the European Commission has now revealed plans to propose a new nature restoration law to work in conjunction with their goals on biodiversity, as outlined in the Commission’s 2030 biodiversity strategy.

Currently still in its drafting stage, the upcoming proposal will take large steps to ensure better conservation and restoration habits that could be targeted directly at the national level and will likely come with binding restoration targets. Agricultural productions, construction, pollution, overexploitation and climate change are contributors to Europe’s biodiversity loss, factors which in the wake of current geopolitical events could worse. As such, the upcoming proposal carries significant political weight. Early reports of the upcoming proposal include restoration targets for soils, wetlands, peatlands, free-flowing rivers and marine areas, with potentially more upcoming in the future.

While initially planned for publication in 2021, have pushed back the publication of the draft proposal, likely due to issues pertaining to planning and implementation of goals, and setting achievable targets to ensure member state cooperation. Already there have been some concerns by the agricultural sector regarding the viability of the targets, urging the European Commission to consider the growing needs of the European Union.

Alber & Geiger can help you represent your business interests and ensure your voice is heard by legislators.

II. EU to Reform Consumer Credit Directive

The fourteen-year-old EU Consumer Credit Legislation was initially established with the goal of harmonizing the EU framework on credit and facilitating the emergence of a functioning internal market in consumer credit while providing a high level of consumer protection. The digitalization of the consumer credit sector, and consumers in general, have led to drastic changes in consumer decision making, and the emergence of new providers in the market have led to and decrease in transparency and consumer protection. This was further accelerated by the global health crisis, leaving EU households more financially vulnerable.

The revisions proposed by the European Commission include an extension of the scope of the directive, proposing to cover all loans up to €100.000, interest-free credit, short-term loans up to three months and crowdfunding credit platforms. Further, the proposal suggests a cap on interest rates, as well as annual rate changes, to be set by member states, if not already existing. Adjustments regarding information provision are also proposed, such as the delivery of pre-contractual information to the customer earlier, and more transparent creditworthiness assessments in the interest of the consumer.

The public consultation process has revealed mixed positions on the European Commission proposal, with an overall support for harmonization of current rules and inclusion of the digital environment. However, other revisions, such as information provision and overall scope of the directive, are heavily favoured by consumer organizations, while business associations are more in favour of non-regulatory interventions, or changes limited to the digitalization aspect of the credit sector.

Overall, the varying opinions and financial regulation aspect of the proposal mean that there will likely be delays in its implementations, expected to be later this year.

Our experienced team can help you maximize the impact of your position in the European decision-making process and represent your interests in ensuing legislative process.

III.EU to Increase Share of Rail Traffic

After thorough review of the previous EU rail freight network concluded in mid 2021, general consensus in the European Commission has been that there needs to be more initiative by the European Union to increase rail usage, infrastructure and support all throughout the member states. The new Cross-border rail traffic proposal aims to better the management and coordination of rail transport, in line with the European Green Deal and the sustainable and smart mobility strategy.

Currently, freight rail transport is heavily underutilized in the European Union due to the lack of competitiveness within the sector and the lack of sufficient rail infrastructure. This is not only due to mismanagement of the current systems, but also because minimal cooperation between EU member states and stakeholders in terms of digitalization, traffic systems, transparency requirements, etc.

The cross-border rail traffic legislative proposal has set fourth multiple legislative and non-legislative measures to improve rail usage. Most importantly, railway capacity management to ensure the increased use of current rail infrastructure via improvements made in timetable designs, asset management and capacity allocation. Further improvements are to be made in the areas of traffic and contingency management, stronger integration of rail transport in multi-modal logistic chains, performance monitoring and infrastructure use conditionality.

Looking at the public consultation, the different policy options outlined by DG Mobility and Transport are met with different responses. A majority of respondents do not see a simple Refinement of the existing legal framework for rail freight and passenger traffic as a sufficient measure to bring change to the sector. A substantial portion of respondents favour the DGs suggestion of a comprehensive modernisation and harmonisation of rules, processes and tools for freight, while also implementing some centralization aspects at a European level.

The European Commission envisions the adoption of the new proposal in the third quarter of 2022 and based on the general support for change received by participants of the public consultation, timely adoption could be possible.

Our team of experts can aid in benefiting from rule-changes and navigate the new legislative environment with ease.

IV. EU to update smoking regulations

In line with the European Commission’s ‘Beating Cancer’ plans, announced in 2021, the Commission is now looking to revise and update its recommendations on smoke free environments. The last recommendations made by the European Commission were issued in 2009, calling on Member states to provide protection from tobacco smoke in indoor spaces, indoor public spaces, public transportation and other public spaces, as deemed appropriate. Since then, the tobacco industry has moved towards alternative smoking products, such as electronic cigarettes and heated tobacco devices. As of now, these alternative methods of smoking are not covered by the smoking recommendations.

The EU Directorate-General for Health and Food Safety, in its proposal for a directive revision outlines the issue with these alternative smoking products, citing multiple studies conducted on the novel products and their mostly unknown long-term effects on public health and safety. The update would add this product category under the coverage of the EU smoking recommendation and addressing the technological developments. Moreover, the new revision aims to correct certain grey-areas left by the 2009 recommendation, pertaining to the definition of ‘indoor’ or enclosed spaces, leaving some quasi indoor and outdoor spaces only under the supervision of member states on a case-by-case basis and exposing the public to potential harm.

Overall, the proposal is still in its infancy, currently in its evidence gathering stage. Feedback so far has been very mixed, with strong opinions on either side of the spectrum. While adoption is still far away, proposed for late 2023, it is likely there will be considerable efforts by the tobacco industry to portrait their new products as different from conventional tobacco products.

Alber & Geiger can utilize its extensive European network to represent your business interests and propose legislative amendments on your behalf.

V. EU to set new food waste targets

As part of the European Green Deal, currently at the centre of the EU’s decision making, the European Commission is now proposing new EU-wide targets for food waste reduction. In the EU, up to 20% of all food produced ends up as food waste, not only serving as a large inefficiency in the agri-food chain, but also contributing up to 10% to total greenhouse gas emissions. Reducing food waste would alleviate pressure from agricultural production and lessen ethical considerations associated with throwing away food.

The objective of the proposal for directive are threefold. To improve knowledge and awareness on levels of impact of food waste, influence attitudes towards food waste and encourage food waste prevention measures along the production chain and ensuring change in the food value chain towards less waste, such as cooperation between different supply chain actors, awareness programmes, voluntary agreements, food donations and more. While the directive is aimed to cover the EU-level, each member state is free to choose the most appropriate and efficient measures on the national level to ensure best results. So far, there has been large variation across member state regarding food waste reduction efforts, leading to calls for more unified and coordinated approaches to be taken by the European Commission.

The proposal outlines different policy objectives, associated with their respective level of ambition. In a first step, the scope of action, target expression (percentage versus absolute) and member state obligations are proposed, while the second policy steps cover varying food waste reduction targets of 15-25% to 40-50% by 2030.

Currently in its public consultation stage, the proposal has received support by the public and industry associations, calling for more unified efforts across the European Union. The Commission predicts the proposal adoption in mid 2023, a target timeline that is realistic for this proposal.

Our team can assist you in getting ahead of concrete provisions of EU regulations to tailor them to your business interests to the highest possible extent.

I. EU to Harmonize Certification of Organic Farming

On March 31st, the new European Commission ‘Organic Action Plan’ was approved by the European Parliament for implementation. In this new legislation, the EU puts emphasis on the further development of the organic farming sector. The new plan builds on the achievements of the prior 2014-2020 action plan and reinforced the commitment of the European Union to achieve the Farm to Fork Strategy’s target of 25% organically farmed land by 2030.

Importantly, the new action plan also seeks to widen the certification of organic farming, looking to cover the entire value chain of organic productions. According to EU analysis, this would drastically improve the recognition and consumption of organic products, thus also encouraging the increase in organic farming. Specifically, the new action plan aims to enhance transparency and traceability in the organic production value chain, not only enhancing oversight, but also consumer trust.

Overall, the new Organic Action Plan rests on the successful achievements of the past organic strategies, which have successfully increased the area under organic production by 66% in the last 10 years and led to improved biodiversity in organically farmed land by close to 30%. Public consultation on the action plan saw the widespread recognition of the issues surrounding organic farming and the threats posed by lack of traceability and in non-harmonized certification, such as the competition of the EU organic production label with private label products.

Alber & Geiger’s expert team can help you make sense of the rules and overcome hurdles to your business.

II. EU to revise Cosmetics Product Regulation

As part of the European Union’s flagship chemical strategy for sustainability, the European Commission now opened the public consultation on the ‘Cosmetics Product Regulation’, aiming to revise the regulation and boost innovation for safe and sustainable chemicals and address the environmental and health concerns caused by harmful chemicals. The consultation seeks the public’s opinion on multiple topics, such as expanding the range of prohibited chemicals in cosmetics, updating labelling requirements on cosmetics and increasing risk assessment requirements.

The updates to the cosmetics product regulation have three aims overall, largest of which is to improve effectiveness, efficiency and coherence of safety assessments across EU legislation. Here, the European Commission is considering merging the current regulatory body, the Scientific Committee on Consumer Safety, with a centralized European agency, such as the European Chemicals Agency. This would improve efficiency, transparency and consistency of chemical safety.
Another regulatory improvement considered by the EC is concerned with the definitions of nanomaterials found in cosmetics, usually as a means of efficient substance carriers or skin penetration. Here, the aim is to update the definitions to be coherent across chemical sectors and update the transparency requirements on nanomaterials.

Further, improvements are aimed at the labelling requirements of the cosmetics sector. While the essence of the practice won’t change, and manufacturers will still be obliged to provide detailed ingredient lists, the European Commission is looking to increase consumer understanding and avoid overloading the product packages with information. Here, specifics on the direction the European Commission will go are likely to result from the public consultation.

Overall, as part of the chemical strategy for sustainability, the updates to the cosmetics product regulations are aimed at consumer protection and coherence among EU legislation. With the current consultation ending in June 2022, the earliest adoption of a draft legislation could be seen towards the very end of 2022, albeit delays being a possibility.

Our experienced team can help you maximize the impact of your position in the European decision-making process and represent your interests in ensuing legislative process.

III.EU to accelerate Solar energy adoption

The European Green Deal has been the centre of EU policymaking in recent years. Renewable energy deployment lays at the heart of the Green Deal and its acceleration will have large positive impact on achieving the goals set out by the leading EU policy. With the recent conclusion of the consultation period on the ‘EU solar energy strategy’, the European Commission has come closer to decreasing EU dependence on fossil fuels and lowering energy prices.

2020 has been the largest year for solar energy so far, supplying 5% of the European Union’s electricity. As part of the European Green deal and especially in light of the recent geopolitical developments, the EU has made several pledges to increase that number. The new EU solar energy strategy reflects these efforts, aiming to tackle the most common problems with solar adoptions such as tendering procedures, financial support, permitting and grid connections. Further, the plan aims to increase market availability of solar products by driving the prices down through support for competition in the sector, while maintaining high standards of production and sustainability requirements.

The public consultation has overall received good support for the accelerated strategy, heavily criticising European dependence on third country fossil fuels. Overall, the strategy came at the right time to further incentivize member states to coordinate an accelerated approach to the energy transition. This is further supported by widespread calls in the European Parliament of raising the renewable energy targets from 32% to 45%, with some MEPs even suggesting higher numbers. While specific policy options have not been set out yet, the widespread support will likely yield an early adoption of the strategy in the second quarter of 2022.

Our team has extensive experience in the technology and energy sectors and can offer advice and services to grow your company.

IV. EU to revamp VAT for the digital age

After 30 years, the Value Added Tax (VAT) system in the European Union is getting an update. The new proposal aims to bring the system into the digital age and reduce both fraud and burden on businesses and governments. Now in its public consultation stage, the ‘VAT in the digital age’ legislative proposal is indicated for European Commission adoption in the third quarter of 2022.

With an increasingly digital economy, the European Union has been in dire need of an update to the outdated VAT legislation, considering cross-border sales of goods and services across EU member states. Currently, national instruments are not sufficient in tackling cross border and e-commerce fraud, as indicated by a large discrepancy between expected VAT and collected VAT on a European level. The new VAT proposal aims to solve this issue by simplification and harmonization of current rules and their modernization to help businesses benefit from the potentials of the single market. The plan includes different objectives, such as making VAT compliance easier for EU businesses operating in the digital space, creating a harmonized framework to combat tax fraud and prevent market fragmentation and ensuring the fair treatment of regular and platform economies.

The European Commission is currently looking at different policy options, ranging from the introduction of digital invoicing and reporting obligations to a single VAT registration platform across all member states. With the current consultation in progress, it is likely that there will be changes made to the policy options in question. The public consultation has already received heavy criticism on the introduction of digital taxation from EU citizens, and we are yet to see how companies react to the proposed changes of VAT procedures.

Alber & Geiger can use its extensive experience and network in the European Union to represent your business interests and propose amendments to maintain the viability of your e-commerce projects.

V. EU to revise food packaging information

With the ‘Farm to Fork’ strategy, the European Commission has recently focused its effort on creating a more fair, healthy, and environmentally friendly food system. An important addition to that is a revision of the current food labelling practices such as standardized front-of-pack nutritional labelling, origin information and date markings.

The revision proposal stems from multiple studies conducted by the European Commission on consumer behaviour and expectation in regard to food packaging. Most importantly, the lack of harmonization on nutritional labelling, along with current abuse of nutritional and health claims on products can impact consumer health. Currently, there are no regulations on what kind of product is allowed to bear nutrient or health claims. The proposal aims to change that by restricting such practices on products that are excessively high on e.g., sugars or saturated fats.

Further, the new proposal aims to unify origin information practices. With growing demand on origin information, EU member states have enacted mandatory labelling nationally, and the proposal aims to unify these laws Union wide. The last issue the revision seeks to fix is the common misunderstanding of date markings. According to studies, misunderstanding of date markings cause up to 10% of EU wide food waste; a problem that the Farm to Fork strategy looks to mitigate.

It is expected that this reform will have great impact on achieving the objectives set out in the overarching Farm to Fork strategy. The new measures would help consumers make better choices, as well as level the playing field between food business operators, some of which use misleading tactics in order to promote a ‘healthier’ product. It is also expected that the bill will lead to more sustainable consumer consumption, driven by demand for more sustainable products and less waste.

Overall, the public consultation shows a positive response for the harmonization of food labelling and the other measures, with some concerns for the implementing costs on business sides by participating representative organizations. After the release of the official summary of the consultation, it is expected that this revision will likely come into effect in the last quarter of 2022.

Alber & Geiger can put its distinguished policy team at your disposal to help you further understand and influence the current and future state of food regulations.

VI. EU to revise Alcohol Tax

As part of the revision of the tax structures on alcohol and alcoholic beverages that came into effect in January of 2022, the EU is now looking to update excise duty rates on alcohol. The last changes made to excise duty rates were in 1992, and along with the European Union’s general push for tax harmonization on alcohol, the excise duties are now under review.

Current legislation on excise duties on alcohol specify the minimum rates of duty on different alcoholic products such as beer, wine, fermented beverages, intermediate products, and ethyl alcohols. While member states can set duties according to national preferences, they are required to be above the minimum EU level.

The revision of excise duties on alcohol products does not only stem from the harmonization efforts by the European Union. Both the ‘Europe’s Beating Cancer Plan’ and ‘United Nations Sustainable Development Goals’ specify the societal cost of alcohol and harmful consumption. The current review of the excise duties thus will seek to measure the impact of alcohol consumption against these economic and social costs and utilize taxation as a levelling instrument to combat harmful consumption.

Currently, the rates and structures of excise duty on alcohol and alcoholic beverages are under evaluation, supported by the open public consultation session till July 2022. While a previous proposal in 2006 did not get adopted, it is likely that the new proposal will pass in the Commission. As of now, planned adoption of the new excise duty structures are planned for mid 2023.

Our expert team can help protect the industry and utilize their experience to advocate on your behalf.

I. EU to strengthen regulation of crypto

As the widespread adoption of cryptocurrencies accelerates, the European Union is pushing for stronger regulation on the emerging asset class, citing concerns over money laundering and lack of oversight on the sector. Currently, the EU remains one of the laxer regulators of cryptocurrencies, aiding in the adoption and innovation of blockchain technology.

First attempts at serious regulation of digital finance such as cryptocurrencies were proposed in 2020 with the “Markets in Crypto Assets” (MiCA) bill, outlining standards, safeguards, and an increase in supervisory power over digital assets. Further legislations have been drafted regarding anti-money laundering measures such as an increase in customer verification procedures and transfer traceability. However, recent concerns over Facebook’s project of creating an asset pegged online currency (stablecoin) have once again flared up discussion over the economic implications of cryptocurrencies and the need for more concrete regulation on the digital asset.

In 2022, it can be expected that the EU will set its sights on more tangible regulatory frameworks regarding crypto. Late last year, the European Council adopted its position on the MiCa framework, meaning that negotiations in the European Council and European Parliament can now start, prior to the adoption of the text. The new framework promises to continue the facilitation of growth for the modern technology by allowing crypto firms to operate more easily across the European Union. However, the MiCA also aims to protect market competition and the Union’s monetary policy by heavily controlling issuing of asset pegged crypto by private companies, while making institutionalized digitalization easier. Overall, this year promises regulatory changes and commitment to the development of crypto related assets.

Alber & Geiger can advise in matters of consumer and privacy protection in crypto in the onset of the new regulatory package and help you maintain your rights and anonymity.

II. EU to shift towards greener aviation

As part of the overall push towards a greener Europe, Brussels lawmakers are now considering phasing out the exemption on fuel tax for the aviation industry. The current energy tax system dates back to 2006, however is not a fitting policy anymore in today’s regulatory climate, where a sustainable future is a key priority.

The plan to tax kerosene and therefore push airlines towards the development of more sustainable aviation fuels is to occur over a ten-year period, starting in 2023. The European Commission stated in a draft document, that the current exemptions on taxation of such pollutants is ‘no longer coherent with the present climate challenges and policies. A further step towards pushing for a greener aviation sector falls under the ReFuelEU Aviation policy, adopted in late 2021, seeking to gradually increase the percentage of sustainable aviation fuels in aviation fuels by binding jet fuel manufacturers to increasing fuel mixing.

Multiple voices within EU institutions however call the EU proposal too disruptive and are asking for amendments to the legislation for effective implementation without economic distortions. The proposed legislation involving taxation, the unanimous approval of all European Union member states is required, making the passing of such policy a lengthy process, with the aviation industry utilizing lobby support for the amendment of the new proposal.
Alber & Geiger can use its extensive experience in EU Affairs to strengthen your position and propose amendments to maintain the economic viability of the aviation industry.

III.EU rules on the trucking sector

The European trucking sector will face major challenges in the first quarter of 2022, as the EU Mobility Package comes into effect. Adopted in 2020 after over three years of negotiations, the legislation aims to increase the quality of life and working conditions of lorry drivers and decrease unfair competition in the transport sector across the European Union.

The package focuses on a guaranteed minimum pay for drivers in their origin country, a substantial issue because of the international, cross border nature of the transport sector. Further, new rules on working time are included in the package, setting new standards for maximum daily and weekly working hours, and upping the minimum rest period both within transport and between transports. This also guarantees that drivers are eligible to return to their home country during mandatory rest periods, leading to an increase in quality of life for long-haul lorry drivers. The newly adopted legislation aims to fight ‘letterbox’ companies, which are typically registered in administratively cheaper countries, but operate almost exclusively outside of the establishment country. Here, the new rulings mandate the return of trucks to their country of origin at least every eight weeks.

Even though the package has just been finalized by the EU, member countries with large road transport sectors have already filed for the suspension of the measures. These countries, including Bulgaria, Hungary, Poland, and Romania, are citing the economic impact of the additional measures to local businesses, potentially leading to heightened unemployment and sector shrinkage due to the increased costs associated with the mobility package. The ruling by the Court of Justice of the EU is expected later this year.

Our experienced team can help you maximize the impact of your position in the European decision-making process and put you in an advantageous position to achieve your agenda.

IV. EU regulation of artificial intelligence

In April 2021, the European Union unveiled a new benchmark regulatory framework on artificial intelligence (AI), with the aim of specifying the use of AI systems and addressing risks and accompanying concerns about the technology. This first ever attempt to enact horizontal regulation of AI seeks to codify the standards of the EU trustworthy AI paradigm, requiring legal, ethical, and robust artificial intelligence application.

The approach taken by the European Commission is one of risk-based assessment and classification of artificial intelligence use. Limited risk systems, for example, operating with human contacts such as chatbots or biometric categorization systems, would be subject to a limited set of transparency obligations under the new law. High-risk systems, on the other hand, such as ones operating with impact on human safety or fundamental rights, would face strict regulation, transparency requirements and regular auditing procedures.

As of November 2021, the legislative proposal is awaiting a draft report on the European Parliament and European Council, followed by the vote and trialogue on the text. Seeing as this proposal is the first of its kind, the developments in this sphere will have major influence on shaping legislation of AI worldwide. And while there is general support towards the commission proposal, experts and stakeholders alike are already calling for amendments and revisions of the benchmark legal framework.

Alber & Geiger can use its expert team on legislative matters to strengthen your position and capitalize on AI related projects, setting international standards under the new legislation.

V. EU to assess grocery delivery services

On-demand grocery delivery services such as ‘Getir’, ‘Gorillas’, or ‘Flink’ are increasingly coming under pressure by both National and Regional Lawmakers. These ultra-fast delivery services saw dramatic growth during the last few years due to the corona pandemic. Lockdown regulations and fears of getting sick popularized these services, promising grocery delivery, sometimes within 10 minutes of ordering. The growth of such companies, however, also led to the emergence of ‘dark stores’, distribution hubs for these services in and around popular neighbourhoods.

All over the European Union, cities have taken increased notice of these dark stores, with both citizens and authorities complaining about the nuisance and hazards these distribution hubs pose. Constant restocking of the de facto warehouses, noise and heightened traffic hazards are only some of the issues cities are experiencing, leading to growing discontent. An increasing number of cities have now taken measures against such services. Amsterdam and Rotterdam for example, have issued a one-year freeze on the opening of new dark stores, halting the growth of the expanding companies. The French city of Lyon further denied the opening of dark stores entirely in 2021, citing disturbances of public space and safety.

The current situation clearly mirrors the initial emergence of services like Uber and Airbnb a few years ago, and cities will likely follow suit when it comes to protecting local interest. On an EU scale, there has been little coherent reaction, although the companies involved have already voiced the desire to expand all throughout the union. It can be expected that these delivery services will heavily advocate for the benefits of their services and positive effects on employment and consumer choice, however, some companies have already noted their willingness to cooperate and find mutually acceptable solutions with European Cities.

Our team can assist you in getting ahead of concrete provisions of EU regulations to tailor them to your business interests to the highest possible extent.

VI. EU targets alcoholic beverages

The European Union’s flagship food policy, the Farm to Fork (F2F) strategy, has taken large strides towards the ideation and implementation of greener and more sustainable food policy, both in terms of producers and consumers. Harmonized food labelling has, of recent, been part of that discussion. However, proposals for implementing nutritional score labelling on alcoholic beverages containing over 1.2% alcohol has caused increased attention to the topic.

Pushback against universal food labelling initially came with the conception of the Nutri-Score system in 2017 by France. The system was initially introduced to provide clear information to consumers to choose healthy and sustainable diets, by placing a five-colour nutrition label on the front of food packages, ranging from ‘A’ as a good nutritional score, to ‘E’ as a bad score. Since its launch, however, the Nutri-Score system has received harsh criticism because of its ambiguity, potential for manipulation and simplification of nutritional data.

In the latest proposal by the creator of Nutri-Score, alcoholic beverages, which under the 2011 regulation are exempt from providing nutritional declaration, should receive an ‘F’ label on the score system, thus giving it its own last place category. Multiple countries, headed by Italy, as well as anti-Nutri-Score lobby groups, have now come together and voiced their discontent, reiterating the previous flaws of the scoring system and now adding the threat of damaging the European Wine sector.

With the rising pressure on the French system, other labelling schemes, such as Italy’s ‘Nutrinform’ have gained momentum, with advocates placing emphasis on consumer education and scientific data. It is expected that the European Union proposes a universal food labelling policy as part of the F2F strategy in the fourth quarter of this year, but which system prevails is not clear of yet.

Alber & Geiger can aid in the protection of the heritage rich wine industry and use its extensive experience to direct EU opinions towards more suitable solutions.

I. EU to target pesticides and artificial fertilizers

Within its agenda for the plenary session from 18 to 21 October 2021, the European Parliament is set to debate the Commission’s Farm to Fork strategy and vote on its own-initiative report. The draft report was adopted in September 2021 after heavy amending following the opinions of sceptical MEPs within other committees. Although the Parliament’s decisions will not be legally binding on this occasion, they will signal how much momentum lies behind the Commission’s plan among lawmakers, and what compromises can be expected.

The file touches upon fiercely debated provisions such as potentially mandatory nutrition labels on the front of food packaging, a statement that industrial-scale farming increases the risk of zoonotic viruses jumping to humans, or a mention to Europeans’ excessive meat consumption. Critics have raised the alarm over potential negative spill overs from the EU’s new farm policy such as a drop in food production leading to a loss of competitiveness for European farmers along with a mere exporting of the environmental damage of food production. A report by the Commission’s own research service allegedly identified such risks as real possibilities, which prompted fierce criticism from MEPs leading to the plenary vote.

The Commission itself has stressed in its responses to parliamentary questions that targets within the Farm to Fork strategy – i.e., to halve pesticide usage by 2030, dramatically curb fertilizers, and ensure that a quarter of EU farmland is organic – are aspirational guidelines that will depend on the adoption and transposition of over 27 individual measures. These will include the ordinary review and impact assessment procedures of the sustainable use of pesticides directive or the Common Agricultural Policy, which means the political battle is far from over and will be long and arduous.

Alber & Geiger can use its extensive experience representation of agribusiness to strengthen your position in the legislative process.

II. EU to target connected devices in push for enhanced cybersecurity

The 2021 State of the Union Address also saw the European Commission announce an initiative to raise the cybersecurity requirements for digital services employed in critical sectors of the economy and society. The initiative will build on the existing proposal for a Directive on Security of Network and Information Systems (NIS2) that is currently processing through stages at the European Parliament. Boldened security standards for smart devices commonly used by European consumers is welcome by many, with a significant number of voices having raised the alarm over the lack of provisions to this effect.

The revision of the NSI2 is expected to update the regulatory framework and ensure that key manufacturers of connected devices, believed to often disregard cybersecurity as a selling point of their products, implement high standards in the protection of the users’ data across different devices. The creation of a European network of Security Operation Centres is also expected to regularly scan the network using artificial intelligence technologies to detect cyber threats. Lastly, the commitment to create a Joint Cyber Unit presented last June was reiterated with the objective of coordinating and setting up a European crisis management capability in the cybersecurity space.

There are a significant number of voices among Europe’s digital industry who had already underlined the lack of baseline cybersecurity requirements, pointing out insufficient existing rules and calling for a horizontal regulation. However, a call for caution about proliferation of EU proposals to regulate the cyber environment has also been made. Many believe that Europe needs more harmonized targets and easily implementable rules to achieve the right protection for Europeans while helping the domestic industry build cyber security capabilities at scale while retaining competitiveness and profitability.

Our expert team can help influence opinions and agendas on EU digital policy matters at the highest political level.

III.EU to review waste management rules

As the EU’s Circular Economy Action Plan materialises into concrete measures, the remainder of 2021 has some important developments in line concerning the regulatory framework of waste management. Before the end of year, the European Commission is expected to come up with a proposal for a regulation set to replace the Packaging and Packaging Waste Directive as the previous impact assessments and public consultations have led the European Commission to believe the current regulatory framework falls short of delivering on environmental targets. The European Commission has equally announced that a review of the Waste Framework Directive is underway with the start of a public consultation scheduled for the second quarter of 2022.

In a high level of ambitions scenario, the new rules could require all packaging to be reusable or recyclable under a new and enforceable definition of re-usable packaging. In certain applications where alternative reusable productions or systems are possible or consumer goods and be handled safely without packaging, forbidding the use of certain packaging materials and polymers is being considered. Producer Responsibility Schemes whereby businesses placing any kind of packaging on the single market ought to be directly involved in the collection and recycling of packaging waste are already meant to be fully operational by 2024.

Many welcome the revamp of the packaging and waste rules as key area to deliver tangible results on the Green Deal’s environmental goals. The European Parliament has reiterated its objective to make all packaging reusable or recyclable in an economically viable way by 2030 in. a resolution from February 2021. However, some voices have called for emphasis on the cost effectiveness and the preservation of competitiveness aspects in an already heavily regulated sector as the different proposals will process through stages at the EU’s co-legislating institutions.

Our team can guide you through the legislative changes being considered to maximise the impact of your positions in the European decision-making process, and to put you in a position to benefit from them.

IV. EU to boost local semiconductor industry

A European Chips Act was pitched by the European Commission during the annual State of the Union address aiming to increase Europe’s self-reliance and competitiveness in an increasingly critical industry. Its implications can be vast and range across many industries including the automotive, computer or home appliances sectors.

The idea is still at a very infant stage without a concrete date for a proposal from the Commission nor any mention in the 2021 work program. However, further steps can be expected in 2022 if the ambitious objective of boosting Europe’s share of semiconductor production to 20% by 2030. The momentum for introducing provisions to that effect has been building up in the face of persistent shortages and supply chain disruptions during the Covid-19 pandemic. As a result, there are now a significant proportion of voices who believe the issue goes beyond business considerations and touches the core of Europe’s geopolitical and technological sovereignty, making it a priority at a time of European growing “strategic autonomy”.

The European Commission has laid down three core areas where to expect EU action. First, a European semiconductor research strategy would aim to build up on already existing first-rate research capacity and aim to align it with European strategic interests and ambitions. Secondly, a collective plan to enhance European production capacity by directly supporting the creation of large-scale fabrication plants capable of producing the most advanced and energy-efficient semiconductors. Last, a framework for international cooperation and partnership with the aim to secure European supply chains through both diversification and creation of domestic capacity. A plethora of financing sources can be expected at both European, national, regional, and private level, as well as a potential dedicated European Semiconductor Fund.

Alber & Geiger can use its extensive experience in EU affairs to strengthen your position to capitalize from projects such as these.

V. EU to update emissions standards for vehicles

The European Commission is expected to come up with a proposal for a regulation on emissions standards for all petrol and diesel cars, vans lorries and buses. The so-called Euro 7 regulation concluded its public consultation period in late 2020 and will be proposed to Parliament and Council before the end of 2021. Although Euro 7 is widely perceived as a key tool to deliver on the EU’s Green Deal emissions reduction targets coming from the transport sector, concerns have been voiced over an excessive level ambition potentially trumping the competitiveness of Europe’s automotive industry.

A key area where the regulation is meant to improve on its predecessors Euro 6 and VI is the monitoring of real-world emissions from vehicles for their lifetime on the road. Measurement of on-road pollutant emissions data currently goes through post-processing, which averages emissions during accelerations and excludes some relatively high emissions of heavy-duty vehicles, particularly in urban traffic. Many thus believe that measurement should target actual tailpipe emissions during a vehicle’s daily use for a comprehensive depiction of emissions according to driving circumstances. Provisions to this effect are envisaged should the Commission opt for the highest-level of ambitions course of action.

The two more moderately ambitious alternatives currently on the table consider stricter limits on CO2 and NOx as well as the inclusion of harmful ultra-fine particles (PN10), ammonia (NH3) and nitrous oxides (N20) that were previously excluded from measurements of vehicle emissions. Furthermore, hybrid cars could also be forced to drive in electric-only mode in certain locations. The proposed regulation is expected to be adopted by 2025 after the proposal has gone through the usual back and forth between the EU institutions.

Our experienced team can assist you in shaping concrete provisions of EU regulations to tailor them to your business interests to the highest possible extent.

VI. EU-US Trade and Technology Council

There was a great deal of enthusiasm over the EU-US Trade and Technology Council (TTC) inaugurated on 29 September 2021 for a much-needed revival of transatlantic cooperation in a host of issues from the fight against climate change to the challenges of the technological revolution. Although the meeting in Pittsburgh was just the first of many encounters, it set the tone for how Brussels and Washington want to cooperate and pursue mutual interests. The event sent a strong signal of the two sides’ renewed wishes for an enhanced partnership and the need to overcome differences in the face of mounting global challenges.

The sheer size of the EU-US economic relationship only is enough cause to pursue the benefits of a closer partnership. Together, they account for a quarter of global trade and almost half of global GDP. It is no surprise that the business community welcomed the TTC with open arms as the first step towards building a reliable institutional framework for business opportunities to take full advantage of the transatlantic relationship’s tremendous potential to that effect. The ten working groups are now expected to advance their work and align shared trade and technology priorities on areas such as common technology standards, supply chain security, or data governance.

For the TTC to turn into a complete success, much of the work ahead will need to iron out the two bloc’s differences in some thorny issues. Chief among the contentious points is data protection regulation, where the EU’s notoriously strict standards have already prevented both sides to reach an agreement in the past whereby full disclosure of personal data between companies and organisations could take place with safety guarantees. Yet, officials insisted differences in some areas will not trump progress in others. All eyes are now on the TTC as a potential enabler of the Transatlantic Trade and Investment Partnership (TTIP)’s revival.

Alber & Geiger can put its distinguished internal relations team at your disposal to help you further understand and influence the current state of EU-US relations.