Policy Updates

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On October 8, 2024, the EU took stock of the progress achieved on its international partnerships since it revamped its model of cooperation five years ago.

The EU's intentions have been to move away from donor-recipient dynamics and towards more mutually beneficial partnerships where both the partners' and Europe's resilience are reinforced. An integral part of this shift is Team Europe, which brings together the EU institutions, the Member States, the European DFIs with the European private sector, aiming to increase the scale, impact, and visibility of joint European action.

This approach has been the main delivery mechanism of the EU's Global Gateway investment strategy, which is expected to mobilize up to EUR300 billion (US$331 billion) in public and private investments by the year 2027. Between 2021-2023, EUR179 billion (US$197 billion) in investments have been already mobilized. EUR50 billion (US$55 billion) of these funds were supported by the EC.

Commissioner for International Partnerships Jutta Urpilainen positively reflected strong foundation of partnerships that were built during her mandate.

The communications highlighted achievements in the five priorities of the Global Gateway strategy:

• Climate and Energy: Mobilizing investments for climate resilience, access to clean energy and infrastructure, helping partner countries shift away from fossil fuels, supporting climate adaptation, supporting global food security, and creating opportunities for jobs and prosperity;
• Digital Transition: Supporting digital transition and deployment of connectivity and digital infrastructures, as well as digital skills. Additionally, allocating 10% of NDICI funding to digital actions;
• Transport: Investing in physical infrastructure to strengthen transport networks, as well as strengthening the regulatory environment;
• Health: Supporting the global fight against the COVID-19 pandemic (via ACT-A and COVAX, supporting global health initiatives like Gavi, the Vaccine Alliance, the Global Fund to fight Tuberculosis and Malaria and the Pandemic Fund. Adopting a Global Health Strategy, strengthening health systems, supply chains, investing in local manufacturing; and
• Education and Research: Investing 13% of the development budget (2021-23) to education. Flagship initiatives focus on education for girls, teacher training, and vocational education.

Additionally, it underscored work on:

• Fragile countries: Addressing the root causes of fragility and supporting the basic needs and livelihoods of populations, along the Humanitarian-Development-Peace nexus. Launching an Integrated Approach to External Conflicts and Crises to see how to best approach fragile and conflict-affected contexts;
• Migration: Scaling up work to address root causes of migration by investing in partner countries’ migration management capabilities and signing migration partnerships in line with the Pact on Migration and Asylum. 10% of the international partnerships budget was earmarked for migration and forced displacement; and
• Multilateral engagement: Engaging with global institutions like the UN, the G7 and G20, and International Financial Institutions to shape global policies; and providing funding for international initiatives on global health, education, and equality.

On September 17, 2024, after months of negotiations, EC President Ursula von der Leyen unveiled her proposed team of Commissioners.

Pending a confirmation hearing by the European Parliament in November, where experts believe some Commissioner-designates are likely to be rejected, and a plenary vote, the new college will be able to begin the new mandate at the earliest in December 2024.

Six Commissioners will have an external component to their portfolio, five will have an ecological focus, and five relate to security in their title.

Among the most relevant for external relations are:

• Jozef Síkela (Czechia, independent): Commissioner for International Partnerships. Síkela is a former investment banker and industry and trade minister. Síkela has been mandated with continuing to focus on Global Gateway. His mission letter tasks him with taking Global Gateway from start-up to scale-up and working in synergy with other programs, namely to secure supply of raw materials and clean tech. Gender equality is singled out as a priority, but no mention of other human development sectors is made.
• Kaja Kallas (Estonia, liberal): High Representative for Foreign and Security Policy. Former Estonian Prime Minister Kallas has been one of the EU's most vocal critics of Russia and a key proponent of both military assistance to Ukraine and a stronger EU defense capability. Her duties include giving a new impetus to the EU’s partnership with Africa and shaping a new foreign economic policy, including via "mutually beneficial partnerships". Kallas has also been tasked to ensure a better link between the EU’s internal and external policies, from climate and energy to digital and food security.
• Hadja Lahbib (Belgium, liberal): Commissioner for Preparedness and Crisis Management, Equality. Labhib is the outgoing Belgian Foreign Affairs Minister and was previously a journalist. The role replaces the current portfolio of humanitarian assistance, covering internal crises as well, and includes a second hat for equality. Her health deliverables include developing a new strategy to support medical countermeasures against health threats. Lahbib will work to develop a Roadmap for Women’s Rights and a new Gender Equality Strategy.

The agreement of the next EU long-term budget will be front and center of the next mandate. Von der Leyen’s priorities are modernization, prioritization, and simplification.

The appointment for the budget is:

• Piotr Serafin (Poland, center-right): Commissioner for Budget, Anti-Fraud, and Administration. Serafin, currently the Polish ambassador to the EU and former chief of staff of Donald Tusk when he was European Council president, also served in the cabinet of former Polish EU Budget Commissioner Janusz Lewandowski. Serafin will report directly to President von der Leyen. His mission letter calls for revamped external action financing that is more targeted and aligned with Europe’s strategic interests.

Among the most relevant for climate, food, and agriculture are:

• Teresa Ribera Rodríguez (Spain, center-left): Executive Vice-President for Clean, Just and Competitive Transition. As the Spanish Vice President and Minister for Ecological Transition, her position combines the roles of competition chief, net-zero architect, and economic transformer. Former Italian Prime Minister Mario Draghi’s report on competitiveness is expected to serve as her blueprint as she leads the development of a Clean Industrial Deal and ensures the European Green Deal stays on track.
• Wopke Hoekstra (the Netherlands, center-right): Commissioner for Climate, Net Zero and Clean Growth. Hoekstra has been confirmed in the role with a revamped portfolio that now includes climate and taxation. He will focus on a clean industrial strategy, decarbonization and emissions reduction, while ensuring a fair transition. The international dimension will center on clean trade and investment partnerships.
• Christophe Hansen (Luxembourg, center-right): Commissioner for Agriculture and Food. As an MEP, Hansen worked on environmental and trade issues. His new role will involve strengthening the competitiveness, resilience, and sustainability of agriculture, and he will prepare a 100-day Vision for Agriculture and Food.

The appointments for health and preparedness are:

• Roxana Mînzatu (Romania, center-left): Executive Vice-President for People, Skills, and Preparedness. Minzatu is a cohesion funds expert who served as an MEP and Minister for European Funds. Her mission statement includes advancing a Union of Equality, a Union of Skills, and fostering a new culture of preparedness to help people adapt to changes and risks, particularly in the face of health and security crises.
• Olivér Várhelyi (Hungary, far right): Commissioner for Health and Animal Welfare. Várhelyi, who is currently responsible for the Neighborhood and Enlargement portfolio, was handed the health and animal welfare role. He is a controversial figure due to breaking ranks with the EC to follow Hungarian Prime Minister Viktor Orbán. His mission statement includes completing the European Health Union, but food safety has been stripped of his portfolio. He will head DG SANTE and HERA. On health preparedness, he will report to the Executive Vice-President for People, Skills, and Preparedness.

In her mission statement, von der Leyen states that R&I, science, and technology must be put at the heart of the EU’s economy, which entails more investments and cooperation.

The appointment for R&I and R&D is:

• Ekaterina Zaharieva (Bulgaria, center-right): Commissioner for Startups, Research, and Innovation. Zaharieva is a lawyer and previously served as Bulgaria's foreign affairs minister after serving several other ministerial posts. Her deliverables include reinforcing international research and innovation cooperation and seeking synergies through Global Gateway. Zaharieva's revamped portfolio does not include education, which will be the responsibility of the Executive Vice President for people, skills, and preparedness, but extends to start-ups, a first for any commissioner.

On July 18, 2024, the European Parliament endorsed Ursula von der Leyen for a second term as President of the European Commission through a secret ballot, where she received 401 votes, 41 votes above the 361 votes needed for a qualified majority.

Von der Leyen received 289 votes against, 15 abstentions, and 7 votes were invalid. The secret ballot suggests von der Leyen managed to garner support from a coalition of pro-European, democratic groups across the center-left and right. Experts noted that this could indicate that a centrist coalition is possible, though future policy decisions will need to be built on a case-by-case basis amidst ongoing polarization.

During the debate that preceded the vote, von der Leyen outlined her political priorities for the next five years. The main proposals related to EU global engagement included appointing a Commissioner for Enlargement and one for the Mediterranean, developing a new economic foreign policy through the Global Gateway, and focusing on strategic partnerships, particularly with Africa ahead of the EU-Africa Summit in 2025.

Von der Leyen emphasized the need for the EU to remain a leader in international climate negotiations and proposed new initiatives, such as a European Climate Adaptation Plan and a Clean Industrial Deal. Her agenda included a focus on security and defense, with plans to create a European Defense Union, appoint a new Commissioner for Defense, as well as developing a new European Migration and Asylum strategy and a Pact for the Mediterranean. Von der Leyen's focus on health has decreased since the pandemic, with a focus mainly on a Critical Medicines Act, an action plan for hospital cybersecurity, and a strategy to support medical countermeasures through HERA.

The focus of the EU's new seven-year budget will be on simplicity, flexibility, speed, and strategic priorities. It will streamline funding allocation, moving away from a program-based budget to a policy-based one. External action financing is expected to further align with EU interests. Von der Leyen also highlighted support for the introduction of new EU resources.

Von der Leyen's proposals reflected the current geopolitical landscape and internal EU dynamics, focusing on strengthening the Union’s resilience and strategic interests. Her agenda also proposed a significant increase in research and innovation spending, the establishment of new roles, such as a Commissioner for Equality and a Commissioner for Intergenerational Fairness, the set-up of a new European Competitiveness Fund, and policies addressing housing, youth, and agriculture.

On June 27, 2024, the Strategic Agenda 2024-2029, which emphasized the EU's commitment to peace, cooperation, and economic prosperity amid a reshaping of the global political landscape marked by strategic competition and instability, was adopted by the European Council.

The EU outlined the following priorities:

• Bolster Europe’s economic competitiveness, including deepening the Single Market in strategic sectors like energy, finance, and telecommunications;
• Strengthen security and defense capabilities within the EU;
• Reinforce EU sovereignty and unity to address strategic competition, climate change, technological advancements, and global instability;
• Strengthen external influence by supporting Ukraine in defending its sovereignty, promoting stability in its neighborhood and beyond, fostering strategic partnerships, and coordinating internal and external policies to address global challenges effectively;
• Uphold human dignity, freedom, democracy, equality, and human rights, while safeguarding the rule of law and enhancing democratic resilience;
• Invest in defense readiness, supporting Ukraine, combating crime, and addressing cyber threats, while enhancing cooperation with NATO and other partners;
• Ensure the proper functioning of the Schengen area, addressing irregular migration, and promoting legal pathways;
• Support the international legal order, promoting peace, democracy, and sustainable development, and reforming the multilateral system;
• Boost economic growth, supporting social welfare systems, investing in skills and education, and reducing disparities across the EU; and
• Pursue a merit-based approach to EU enlargement, supporting aspiring members, and undertaking necessary internal reforms.

On May 29, 2024, the global arm of the EIB committed EUR25 million (US$27 million) to Amethis Fund III, a pan-African fund that supports the growth of medium-sized companies in Africa.

The fund focuses on companies providing goods and services to low and middle-income populations in sectors such as healthcare, business services such as logistics and IT, manufacturing and distribution, agribusiness, consumer goods, non-banking financial services, infrastructure, and energy.

The EIB Global investment aligns with the EU's Global Gateway strategy to promote economic development in sub-Saharan Africa. The fund will implement an impact strategy that addresses issues essential to the sustainable development of the continent, such as gender equality, sustainable employment with an emphasis on health coverage and climate considerations.