II. UKRAINE
4. The European Council discussed the Russian war of aggression against Ukraine in its different dimensions. The European Council reiterates that it firmly stands with Ukraine and that the European Union will continue to provide strong support for Ukraine’s overall economic, military, social and financial resilience, including humanitarian aid.
5. The European Council resolutely condemns Russia’s indiscriminate attacks against civilians and civilian infrastructure, and urges Russia to immediately and unconditionally withdraw all its troops and military equipment from the entire territory of Ukraine within its internationally recognised borders. International humanitarian law, including on the treatment of prisoners of war, must be respected. Ukrainians, notably children, who have been forcibly removed to Russia must be immediately allowed to return safely. Russia, Belarus and all those responsible for war crimes and the other most serious crimes will be held to account for their actions, in accordance with international law.
The adoption of the sixth package of EU sanctions further intensifies pressure on Russia to end its war against Ukraine. Work will continue on sanctions, including to strengthen implementation and prevent circumvention. The European Council calls on all countries to align with EU sanctions, in particular candidate countries. Work should swiftly be finalised on the Council decision adding the violation of Union restrictive measures to the list of EU crimes.
6. The European Union remains strongly committed to providing further military support to help Ukraine exercise its inherent right of self-defence against the Russian aggression and defend its territorial integrity and sovereignty. To this end, the European Council calls on the Council to swiftly work on a further increase of military support.
7. The European Council notes that the Commission will soon present a proposal to grant Ukraine new exceptional macro-financial assistance of up to EUR 9 billion in 2022. It calls on the Commission to swiftly present its proposals on EU support for the reconstruction of Ukraine, in consultation with international partners, organisations and experts.
8. Russia, by weaponising food in its war against Ukraine, is solely responsible for the global food security crisis it has provoked. The European Council urges Russia to immediately stop targeting agricultural facilities and removing cereals, and to unblock the Black Sea, in particular the port of Odesa, so as to allow the export of grain and commercial shipping operations. The European Council supports the efforts of the United Nations Secretary-General to this end. The European Council underlines that EU sanctions against Russia allow the free flow of agricultural and food products and the delivery of humanitarian assistance.
9. The European Council strongly supports the efforts on the Solidarity Lanes to facilitate food exports from Ukraine via different land routes and EU ports. It calls on the Commission and the Member States, building in particular on the FARM initiative as well as UN and G7 initiatives, to step up their efforts:
(1) to support developing countries to reorient, where necessary, their supply chains;
(2) to accelerate the delivery of the relevant Team Europe flagship initiatives agreed at the recent European Union – African Union Summit which seek to develop sustainable food production, strengthen agricultural productivity, including on protein crops, and agri-business capacity on the African continent; and
(3) to work on initiatives together with international partners to support the development of manufacturing capacity of inputs in developing countries, in particular sustainable fertilisers.
III. MEMBERSHIP APPLICATIONS OF UKRAINE, THE REPUBLIC OF MOLDOVA AND GEORGIA
10. The European Council recognises the European perspective of Ukraine, the Republic of Moldova and Georgia. The future of these countries and their citizens lies within the European Union.
11. The European Council has decided to grant the status of candidate country to Ukraine and to the Republic of Moldova.
12. The Commission is invited to report to the Council on the fulfilment of the conditions specified in the Commission’s opinions on the respective membership applications as part of its regular enlargement package. The Council will decide on further steps once all these conditions are fully met.
13. The European Council is ready to grant the status of candidate country to Georgia once the priorities specified in the Commission’s opinion on Georgia’s membership application have been addressed.
14. The progress of each country towards the European Union will depend on its own merit in meeting the Copenhagen criteria, taking into consideration the EU’s capacity to absorb new members.
IV. WESTERN BALKANS
15. The European Union expresses its full and unequivocal commitment to the EU membership perspective of the Western Balkans and calls for the acceleration of the accession process.
16. Building on the revised methodology, the European Council invites the Commission, the High Representative and the Council to further advance the gradual integration between the European Union and the region already during the enlargement process itself in a reversible and merit-based manner.
17. The European Council recalls the importance of reforms, notably in the area of rule of law and in particular those related to the independence and functioning of the judiciary and the fight against corruption. It also calls on the partners to guarantee the rights and equal treatment of persons belonging to minorities.
18. The European Council was informed about the latest developments on discussions between Bulgaria and North Macedonia. It calls for a swift resolution of the last remaining issues so that accession negotiations can be opened without delay.
19. The European Council reaffirms the urgency of making tangible progress in resolving outstanding bilateral and regional disputes, particularly the Belgrade-Pristina Dialogue on normalisation of relations between Serbia and Kosovo*.
20. The European Council welcomes the political agreement reached on 12 June 2022 by the leaders of Bosnia and Herzegovina in Brussels which is needed for the stability and full functioning of the country and in order to respond to the aspirations of the people. It calls on all political leaders in Bosnia and Herzegovina to swiftly implement the commitments set out in the agreement and urgently finalise the constitutional and electoral reform, which will allow the country to advance decisively on its European path, in line with the opinion of the Commission.
21. The European Council is ready to grant the status of candidate country to Bosnia and Herzegovina and to that aim it invites the Commission to report without delay to the Council on implementation of the 14 key priorities set out in its opinion with special attention to those which constitute a substantial set of reforms in order for the European Council to revert to decide on the matter.
VII. EXTERNAL RELATIONS
Eastern Mediterranean
28. The European Council expressed deep concern about recent repeated actions and statements by Turkey. Turkey must respect the sovereignty and territorial integrity of all EU Member States. Recalling its previous conclusions and the statement of 25 March 2021, the European Council expects Turkey to fully respect international law, to de-escalate tensions in the interest of regional stability in the Eastern Mediterranean, and to promote good neighbourly relations in a sustainable way.
Belarus
29. The European Council underlines the democratic right of the Belarusian people to have new, free and fair elections. It calls on the Belarusian authorities to uphold human rights, democracy and the rule of law, to end repression and to release political prisoners.
* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.
Compliments of the European Council.
The post European Council conclusions on Ukraine, the membership applications of Ukraine, the Republic of Moldova and Georgia, Western Balkans and external relations, 23 June 2022 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The aviation sector, like many others, has been heavily impacted by the COVID shock. It is now confronted with the fall-out of Russia’s military actions against Ukraine.
But we must look ahead. Gone are the days when the aviation sector ignored its responsibility for global warming.
Just recall the commitments taken as part of “Destination 2050”. For the first time, the sector presented a pathway for a climate neutral sector that combines new technologies, improved operations, sustainable aviation fuels and economic measures. And in the Toulouse Declaration, the full range of public and private stakeholders commit to the future sustainability and decarbonisation of aviation.
We must encourage aviation on this path; not banish it from our transport solutions.
Emission-free flight: sustainable and key to the industry’s economic future
Emission-free flight is not just the key to the long-term sustainability of the aviation sector: it is also the key to this industry’s economic future.
Last year, aircraft “made in Europe” accounted for about 65% of commercial aircraft sold globally. The aerospace industry generates 125 billion euros of value added and employs close to one million workers across Europe.
Tens of thousands of aircraft will be sold in the coming decades. In fact, 26 thousand “green” aircraft are expected to be sold by 2050. This represents a total value of 5 trillion euros for the world.
It should be our common ambition that the European industry captures a large share of this global market. So, developing zero-emission solutions for global aviation is therefore a must.
We can be proud that Europe is leading the way in alternative propulsion. Initiatives such as the “flying fuel cell” propulsion system, hydrogen-combustion turbine, or ultralight, safe and reliable tanks for liquid hydrogen storage are all examples of the innovation potential in Europe.
And I am not just referring to the large manufacturers, but also to the many smaller companies and start-ups. The enthusiasm in the aeronautical industry is really encouraging!
The EU is investing heavily to accompany such efforts. Under Horizon Europe programme, 1.7 billion Euros are allocated to the Clean Aviation Partnership.
This comes on top of all the other funds for collaborative research and development actions, as well as national research programmes. 
How to ensure that great technologies turn into great products
We all know that great technologies don’t automatically translate into great products. It is also true in aviation.
This is a complex industry which involves actors from many different sectors. Aircraft manufacturers, airlines, airports, fuel providers, maintenance organisations, regulators all must work together to make the system work.
Because if we don’t, we will end up having great aircrafts, but:

no standardisation and certification to support these,
no hydrogen infrastructure and fuel to fly them with,
and no business case for the aviation sector.

In other words, it is time to prepare the entire aviation community.
How to overcome this challenge? For once, maybe we don’t need only engineers to provide a solution. And you do know that I love engineers. I am one of them!
We need the entire aviation supply chain to come together, understand the challenges, agree to a common ambition. And set to work.  
The missing piece to put all parties together – the Alliance for Zero-Emission Aviation
Today, as part of ILA Berlin, one of the biggest worldwide events in aviation, I officially launched the Alliance for Zero-Emission Aviation.
The Alliance will have one main goal: to prepare the entire aviation community for the entry into service of hydrogen- and electric-powered aircraft.
The Alliance will identify all barriers to the entry into commercial service of these aircraft, establish recommendations and a roadmap to address them, promote investment projects and create synergies and momentum amongst members.
So: if your organisation is committed to zero-emission aviation and wants to help make it possible, I invite you to join the Alliance.
And to come to the first General Assembly of the Alliance foreseen for end of October, in Brussels.
Continuing to live the dream of flight: innovation as the path for sustainability
Not far from Berlin, Otto Lilienthal undertook his first flight attempts. As so many other aviation pioneers, he was fascinated by the dream of flight.
Today, we live that dream. Aviation has brought us closer to the world. It provides us a safe, affordable, quick and comfortable means of transportation.
There will be challenges, of course, but we can address them if we work together.
And if we do, I am convinced: not only the best is yet to come for the aviation sector but also it will play its full part in the fight against global warming.
Compliments of the European Commission.
The post Hydrogen & electric-powered aircraft: Towards Zero-Emission Aviation – Blog of Commissioner Thierry Breton first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Russia’s war against Ukraine threatens to create a global wave of hunger. We must urgently enable Ukraine to export its grains through the Black Sea. We also see a “battle of narratives” around Russian grains and fertilizer exports. While our sanctions do not target these exports, we are ready to work with the UN and our partners to prevent any unwanted impact on global food security.

“The war of aggression against Ukraine puts the world in danger of a famine affecting hundreds of millions of people. We must urgently enable Ukraine to export its grains. We are also ready to work to prevent any unwanted impact of our sanctions on global food security.”
– Josep Borrell, HR/VP

For several decades, hunger was declining and the international community committed to end it globally by 2030 with the Sustainable Development Goals (SDG) adopted in 2015. However, since then, the number of undernourished people had stopped decreasing and the COVID-19 pandemic had already made things much worse. The World Food Program (WFP) estimates that this number has risen from 132 million people before the COVID-19 pandemic to 276 million in early 2022 and 323 million today.
The unjustified and unprovoked war of aggression against Ukraine puts the world in danger of a famine affecting hundreds of millions of people.
Even before Putin’s war against Ukraine, we were losing ground in the global fight against hunger. Now, this unjustified and unprovoked war puts the world in danger of a famine affecting hundreds of millions of people. According to the UN Global Crisis Response Group, 1.2 billion people – one in six of the world’s population – are living in ‘perfect-storm’ countries that are severely exposed to the combination of rising food prices, rising energy prices and tightening financial conditions.
Ukraine, one of the most important “breadbaskets” of the planet
For decades, Ukraine has been indeed one of the most important “breadbaskets” of the planet. Today, Putin’s troops shell, mine and occupy arable land of Ukraine, attack farm equipment, warehouses, markets, roads, bridges in Ukraine and block Ukraine’s ports, preventing the export of millions of tons of grain to global markets. Russia turned the Black Sea into a war zone, blocking shipments of grain and fertilizer from Ukraine but also affecting Russian merchant shipping. Russia is also applying quotas and taxes on its grain exports. Russia’s conscious political choice is to ‘weaponise’ these exports and use them as a tool for blackmail against anyone that opposes its aggression.
Food prices, that were already affected by the pandemic and climate change, have never been as high as today in real terms and many experts warn that the worst is yet to come.
As a result, food prices, that were already affected by the pandemic and climate change, have never been as high as today in real terms. It has major consequences for many low-income countries and for the World Food Program, which has already had to reduce its interventions in several regions. Many experts warn that the worst is yet to come if Ukrainian exports remain blocked until the next harvest. Meanwhile, several countries have introduced unilateral restrictions on their own agricultural exports, while others are seeking to build up stocks, exacerbating the problems on world markets. Higher energy costs and a loss of fertilizer supply have led to fertilizer prices rising even faster than food prices. Because of this, the price for rice, the most consumed staple in the world, which up to now has low prices, could increase significantly and global food production may not be able to meet rising demand. The UN has warned for “a food catastrophe of global proportions in 2023”.
An absolute urgency to act
There is an absolute urgency to act. With our member states, we are putting together emergency relief. As Team Europe, we have pledged €1 billion for the Sahel and Lake Chad regions and over €600 million for the Horn of Africa. We put in place a €225 million food facility to assist our partners in North Africa – the region most dependent of food supplies from Ukraine and Russia. More structurally, we will also spend €1.5 billion to help develop sustainable food systems in the Eastern and Southern neighborhood, the Western Balkans and Turkey, until 2024.
We are also acting within the G7, the G20, the World Bank and the IMF, to increase their commitment to the countries most in need via emergency financial support, additional debt relief, the emission of new Special Drawing Rights and other instruments. We fully support the efforts in that direction by the UN Secretary General within the Global Crisis Response Group.
To avoid a global food calamity, the top priority remains to stop the war and get Russian troops out of Ukraine.
To avoid a global food calamity, the top priority remains to stop the war and get Russian troops out of Ukraine. This is the aim of the EU’s massive support to Ukraine and of the restrictive measures, we are applying with our allies against Putin’s regime. However, we have never targeted Russian agricultural and fertilizer exports. EU sanctions do not prohibit Russia to export any agricultural goods, payment for such Russian exports or the provision of seeds, provided that sanctioned individuals or entities are not involved. EU sanctions have also no extraterritorial application, i.e. they do not create obligations for non-EU operators, unless their business is conducted at least partly within the EU.
We are fully aware that there is a “battle of narratives” around this issue. Senegal’s President Macky Sall, who chairs the African Union, has talked in particular about difficulties that African countries encounter on this subject following his recent meeting with Vladimir Putin in Sochi and at the OECD ministerial meeting. Last Saturday, I spoke about this issue with Aissata Tall Sall, the Minister of Foreign Affairs of Senegal. On Tuesday, I met also UNCTAD Secretary General Rebeca Grynspan and talked with UN Under-Secretary-General Martin Griffiths, both in charge of the UN-sponsored negotiations about facilitating grain and fertilizer exports out of Russia and reopening export routes for Ukrainian grains. And, on Thursday, I met with the ambassadors to the UN from the African group following my address to the UN Security Council.
We are ready to work with the UN and partners to prevent any unwanted impacts of our sanctions on global food security.
I assured all my interlocutors that we are ready to work with the UN and partners in preventing any unwanted impacts of our sanctions on global food security. We are in close contact with the UN to look into issues such as market avoidance and over compliance which could affect purchases of Russian grain or fertilisers. We are ready to discuss these matters through experts in order to identify concrete obstacles including possible difficulties in payments, and to work towards solutions. I have also instructed EU ambassadors in our African partner countries to discuss with the authorities all relevant aspect of the present situation on payments.
Differentiate between concrete problems and the Kremlin’s disinformation
I urged my African interlocutors to differentiate between concrete problems and the Kremlin’s disinformation. When the Russian propaganda machine claims that we are responsible for the food crisis, this is nothing but cynical lies, like many others that this machine has been spreading for many years. The cynicism of that posture was obvious when Russia bombed Ukraine’s second largest grain silo in Mykolaiv, just a couple of days after President Sall spoke with President Putin in Sochi. All those who want to limit the global food crisis should above all help us to increase the pressure on Russia to stop its war of aggression.
When the Russian propaganda claims that we are responsible for the food crisis, this is nothing but cynical lies, like many others that this machine has been spreading for years.
In the meantime, we continue to help Ukraine to export agricultural products by other routes than the Black Sea through our “Solidarity Lanes Action Plan”. We are working with market players to make additional freight rolling stock, vessels and lorries available. We are facilitating border checks of agri-food products, and we will make storage facilities of member states available for Ukrainian grains. As we did last March for the electricity network, we must  accelerate the integration of the Ukrainian railway network into the European system, although this certainly poses difficulties because of the differences in rail gauge.
The imperative to allow Ukrainian exports by ship to resume
However, we must face the facts: none of these alternatives can provide a sufficient flow of exports in the short term. It is therefore imperative to allow Ukrainian exports by ship to resume. We are working closely with the UN on this issue and the EU and its member states are ready to do their part of the necessary actions to achieve this. We hope that a solution can be found in the coming days. Not doing this threatens to cause a global food catastrophe.
Author:

Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy / Vice-President of the European Commission

Compliments of the European Union External Action Service, The Diplomatic Service of the European Union.
The post The battle of narratives around the food crisis first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Keynote speech by Frank Elderson, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, 10th Annual Conference on Bank Steering & Bank Management at the Frankfurt School of Finance & Management |
I understand that today’s audience includes managers and experts from banks and banking associations, supervisors, academics and students. So this is an ideal platform for exchanging views on the financial sector’s role in addressing the risks of the ongoing climate and environmental crises. Conferences like these are a chance to inform each other of what we are doing and to share the knowledge and expertise we are accumulating to gear ourselves to a world that is already undergoing a climate crisis. Physical and transition risks from climate change and environmental degradation are already materialising all around us.
Today I will update you on the recent progress on both the international agenda and the ECB’s own supervisory agenda on climate-related and environmental risks, or C&E risks for short. I will share some preliminary findings from our review of how banks incorporate C&E risks into their risk management practices.
There will be good, bad and hopeful news.
The good news is that, one year after my first speech on the state of C&E risk management by euro area banks as Vice-Chair of the ECB’s Supervisory Board, banks are starting to progress in their management of these risks. The bad news is that this progress is not across the board, and laggards remain in all areas. But there is hopeful news too. The silver lining is that the state-of-the-art governance and risk management practices now being adopted by some banks confirm that what the ECB is asking is possible. We just need all banks to do it.
The new Basel Committee on Banking Supervision principles for the effective management and supervision of climate-related financial risks
All around the world, there is a growing consensus on the urgency of dealing with the climate and environmental crises. For banks, the prominence of C&E risks is significant, too. During various supervisory exercises recently conducted by the ECB, most banks recognised that they have significant exposures to these risks, which they expected to materialise in the short to medium term. And we see that banks are consequently allocating more and more financial and human resources to managing these risks.
And this is what supervisors around the world expect from banks. Just last week, the Basel Committee on Banking Supervision, the main global standard-setter for the prudential regulation of banks, published its “Principles for the effective management and supervision of climate-related financial risks”.
These principles have been prepared in a Basel Committee task force that I co-chair. They are a major milestone, as it means that supervisors from all around the world now unanimously confirm not only that climate risks may be material, but also that both banks and supervisors urgently need to contend with them. The Basel Committee backed this up by announcing it expects implementation of these principles as soon as possible and that it will monitor progress in these fields across its member jurisdictions.
Importantly, the Basel Committee’s principles promote many of the practices that the ECB had signalled as crucial for the proper management of C&E risks. For instance, they emphasise the importance of assessing the materiality of climate risks and considering their potential impact on banks’ business models. They also highlight the need to fully incorporate material risks into banks’ own internal capital and liquidity adequacy assessment processes.
Moreover, the principles expect a bank’s board and senior management to ensure that the bank’s internal strategies and risk appetite statements are consistent with any publicly communicated climate-related strategies and commitments. This expectation comes at a timely moment as more and more banks publicly commit to aligning their financing activities with the objectives of the Paris Agreement. Failing to meet their commitments may expose these banks to a number of risks, including reputational risks as well as any potential prudential risks of misalignment with these objectives. This is particularly true for jurisdictions, such as the European Union, which have binding climate targets.
Addressed to both banks and supervisors, these principles seek to improve, on the one hand, banks’ risk management and, on the other, the supervisory practices linked to climate-related financial risks. Furthermore, the revisions to the Capital Requirements Directive currently under discussion by the EU co-legislators further reaffirm the ECB’s mandate in this area by broadening the supervisory toolkit to address environmental, social and governance risks, and by explicitly requiring banks to have concrete plans to address C&E risks arising from misalignment with EU climate targets.
The ECB’s supervisory agenda on climate
Indeed, since 2020 the ECB has been starting to implement many of the principles that the Basel Committee has now established on a global scale.
It has now been two years since we started taking concrete steps to include C&E risks in our ongoing supervision. In 2020 we published a guide on C&E risks, which outlined our expectations for the management and disclosure of these risks. In 2021 we published a report on banks’ self-assessments of where they stood relative to those expectations and shared some of the good practices we had observed in the banking industry.
Early in 2021 we also asked all banks under our supervision to devise concrete action plans for ensuring full alignment with our expectations. Banks provided us with such plans, and where we found them deficient, we asked them to be sharpened, which was subsequently done. In 2022 we continue to check progress under these action plans by assessing whether banks have advanced the plans submitted in 2021 and the extent to which they use them as an effective steering instrument to advance their C&E risk practices. Moreover, in 2021, for the first time, C&E risks were qualitatively integrated in the Supervisory Review and Evaluation Process (SREP). This year, our joint supervisory teams will complement the SREP assessments with their observations from a climate risk stress test and a thematic review on how banks incorporate these risks into their day-to-day business. This will also be qualitatively integrated in the SREP scores, which may have an indirect impact on minimum capital requirements.
We are also launching on-site inspections of banks’ management of these risks and are rounding off a targeted review focusing on commercial real estate exposures. All initiatives – the stress test, the thematic review and the on-site inspections – aim to monitor banks’ alignment with the expectations set out in the ECB’s Guide on C&E risks. They are part of what I described at the start of the year as a move towards an immersive approach to the management of climate-related and environmental risks in the banking sector.[1] We intend to fully integrate C&E risks in the regular supervisory dialogue and cycle and keep them there, treating them in the same way as any other material risks that banks face.
The climate risk stress test, the results of which will be published in July, constitutes an unprecedented effort, also on the ECB’s part, to more fully understand how exposed euro area banks are to C&E risks. It will also give us a clearer picture of how resilient they are against these risks, as we are assessing, among other things, banks’ climate risk stress test frameworks, but also the sustainability of their income sources vis-à-vis the green transition.
Let me emphasise that in this exercise we define resilience very broadly. We test the capabilities of banks to analyse, assess and respond to the consequences of climate-related and environmental stress in both a quantitative and qualitative fashion. What I call a narrow stress test – i.e. the typical number-crunching to assess the impact of physical and transition stress on capital and income – is only one part of the overall exercise. At this stage, the fact that banks provide proof of their climate stress testing capabilities is as important as the results of the test.
The results from this stress test will complement the information from the thematic review, in which we will assess the evolution of the soundness, effectiveness and comprehensiveness of banks’ C&E risk management practices, as well as their ability to steer their C&E risk strategies and risk profiles towards the targets they set forth in their action plans.
I will now delve a little deeper into this exercise.
Thematic review on climate-related and environmental risks
A year has passed since banks completed their self-assessments and drew up their action plans. So, where do banks stand in terms of their alignment with the ECB’s supervisory expectations on managing C&E risks? This is the question the ECB’s thematic review on C&E risks seeks to answer.
The thematic review is being carried out jointly by the ECB and the national competent authorities and assesses 107 significant banks and 79 less significant banks. Truly all of European banking supervision is pitching in – supervisors from the ECB and the national competent authorities are working together to ensure the consistency of the supervisory approach as well as the outcomes of the exercise.
This broad scope and our close cooperation have been incredibly enriching, as they have enabled us to actively share our knowledge and experience and to learn from each other’s practices on a daily basis.
While the ultimate objective is for all banks to be fully aligned with our supervisory expectations, the thematic review is intended to be a learning exercise – not just for supervisors across Europe, but also for the banks. This is why we have made a point of sharing good practices we have observed – so that banks can draw inspiration and push forward.
New supervisory tools are being developed as banks step up their modelling and management of C&E risks. There is now a common understanding that these risks are a fundamental part of a bank’s risk map and a key focus of the ECB’s supervision of banks’ risk management.
Preliminary findings from the thematic review
The thematic review is still ongoing, but I would like to share some of our preliminary findings with you today, also ahead of the upcoming supervisory dialogue with banks on this topic. As I said before, there is good and bad news, but also reason to be hopeful.
The good news is that one year after my first speech on the state of C&E risk management in the euro area banking sector, most banks have started to adapt their practices to incorporate C&E risks into their daily business. In early 2021 banks deemed that 90% of their practices were only partially or not at all aligned with our supervisory expectations.
One year on, we are seeing positive change. More and more banks report that they are taking actions to become more closely aligned with the ECB’s expectations. Similarly to last year, banks have made the most progress with the C&E expertise of their management body and within governance structures.
The bad news is that clear gaps remain in all areas of focus of the Guide, and individual banks are not making progress across the board. Moreover, we have observed several inconsistencies. For example, banks’ strategies account significantly more for transition risks than for physical risks. And although an increasing number of banks have deemed themselves to be materially exposed to C&E risks in the short to medium term, there are banks that have still not performed a materiality assessment. In addition, we see that banks do not fully consider how the misalignment of their clients with the Paris Agreement affects their own risk exposures.
Thankfully, there is also reason to be hopeful. For each ECB expectation, there is at least one bank – and often many – with good practices. The governance and risk management practices that some banks have started to adopt confirm that what the ECB is asking of banks can be done.
As the supervisor, our focus is on the safety and soundness of banks. Above all, we want to promote the stability of individual institutions and preserve financial stability.
But banks should also want to effectively manage C&E risks and position themselves to benefit from the green transition. After all, the financing needs of the real economy during the green transition are only going to increase. As intermediaries with comprehensive knowledge about their customers, banks are exceptionally well positioned to support their clients during the transition.
The development and deployment of innovative tools for measuring and monitoring C&E risks is also gaining momentum – among supervisors and banks. For instance, in our supervisory dialogue with banks as part of the thematic review, we have started to discuss real client cases to understand how thorough banks are being in their assessment of their clients’ sustainability trajectories. We are also piloting tools aimed at improving our insights into how well banks are identifying and responding to the transition risk of their corporate clients.
Our joint supervisory teams will soon start another round of feedback sessions with banks. These will give banks a better idea of where they stand relative to their peers. I would like to take this opportunity to invite the banks to use these exchanges to share more good practices and to clarify any of their practices that we have so far overlooked.
After these feedback sessions, banks will receive comprehensive letters setting out any identified shortcomings together with concrete follow-up actions. I have referred to the progress that banks are making, which is in itself encouraging. However, as a supervisor we will only be satisfied when all banks are fully aligned with all of our expectations. This will be our mindset when we draft our feedback letters later this year. Because for all the encouraging progress we are seeing, there is still a long way to go. And this is a journey that needs to be completed as swiftly as possible.
The way ahead
After last year’s supervisory exercises, virtually all banks developed action plans to advance their practices. We have since asked banks to speed up their efforts.
In more than 80% of cases, banks intend to complete the actions set out in their plans before the end of 2023. However, there is still a group of banks whose plans lack sufficient detail across the board and do not define clear and ambitious timelines for their actions.
Having assessed the banks’ action plans and the progress made in their practices for two years now, I see it as reasonable that banks can be fully compliant with all our expectations by the end of 2024 at the latest. At the same time, we remain open to listen to arguments of banks that may render this not feasible in individual cases. The absence for some banks of a thorough and complete assessment of the C&E risks and their materiality cannot be a reason for lack of progress and should be remediated promptly.
Conclusion
Let me conclude.
The recent Basel Committee principles confirm the urgent need for banks and supervisors to incorporate the management of climate-related and environmental risks into their practices. The ECB started to roll out its supervisory agenda on C&E risks in 2020 and, two years later, banks are making tangible progress with their C&E agendas, too.
Many banks are still lagging behind in at least one area, though. That is why the ECB is laying out sufficiently accommodative deadlines for banks to fully implement C&E risks into their daily practices. At the same time, however, many banks already comply with at least one of the areas of C&E risk management the ECB wishes to see developed. We must use this opportunity to learn from each other – an effort that the ECB is happy to support by continuing to share good practices in the industry. This, in my view, is reason to be hopeful.
Compliments of the European Central Bank.
The post ECB | Frank Elderson: Good, bad and hopeful news: the latest on the supervision of climate risks first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Following dialogues with the Commission and the network of national consumer protection (CPC) authorities, TikTok has committed to align its practices with the EU rules on advertising and consumer protection, namely, the Unfair commercial practices Directive, the Consumer rights Directive and the Unfair contract terms Directive.  This dialogue first originated from a complaint of the European Consumer Organisation (BEUC). In February 2021, BEUC raised the alarm regarding certain problematic practices of TikTok allegedly breaching EU consumer rules. For instance, BEUC had found that the social media platform was failing to protect children from hidden advertising and inappropriate content. Following the complaint, the Commission, together with the CPC, and led by the Irish and Swedish consumer authorities, launched a dialogue with TikTok. The series of concerns have now been addressed and TikTok committed to change its practices.
Commissioner for Justice, Didier Reynders said: “All social media platforms are required to play by the rules and make sure that consumers can easily identify commercial content, including when promoted by influencers. We welcome TikTok’s commitment for more transparency in the way it operates its business activity. Thanks to our dialogue, consumers will be able to spot all kinds of advertisement that they are exposed to when using this platform. Despite today’s commitment, we will continue to monitor the situation in the future, paying particular attention to the effects on young users.”
Overview of main commitments:

Users can now report advertisements and offers that could potentially push or trick children into purchasing goods or services;
Branded content now abides by a policy protecting users, which prohibits the promotion of inappropriate products and services, such as alcohol, “get rich quick” schemes and cigarettes;
Users are prompted to switch on a toggle when they publish content captioned with specific brand-related keywords such as #ad or #sponsored;
If a user has more than 10,000 followers, their videos are reviewed by TikTok against its Branded Content Policy and Community Guidelines to ensure that the content is appropriate;

Policies clarify how to purchase and use coins, and pop-up windows will provide the estimated price in local currencies. Consumers are allowed to withdraw within 14 days from the purchase, and their purchase history is also available;

Policies also clarify how to get rewards from TikTok and how to send gifts, for which users will be able to easily calculate their price;

Paid advertisement in videos will be identified with a new label, which will be tested for effectiveness by a third party;
Users are able to report undisclosed branded content, and new rules for hashtags and labels will be implemented.

Next steps
The Consumer Protection Cooperation Network (CPC) will actively monitor the implementation of these commitments, in 2022 and beyond. Data Protection Authorities will remain competent to assess compliance of the new policies and practices of the company with EU data protection rules.
CPC authorities will, in particular, monitor and assess compliance where concerns remain, such as whether there is sufficient clarity around children’s understanding of the commercial aspects of TikTok’s practices. For example, for what concerns personalised advertising, in light of the recently published “5 key principles of fair advertising to children”
The CPC will also carefully check the outcome of the testing of labels, as well as their implementation, and the adequacy of the display of the estimated unit price per coin in local currency when sending a gift. In addition, actions at national level may be launched to ensure that EU standards are respected and to guarantee that all platforms abide by the same rules.
Background
The Consumer Protection Cooperation (CPC) is a network of authorities responsible for the enforcement of EU consumer protection laws. To tackle cross-border issues, their actions are coordinated at EU level.
National authorities are responsible for the enforcement of EU consumer protection laws. Thanks to the updated Consumer Protection Cooperation Regulation, they now have stronger powers to detect irregularities and take speedy action against rogue traders. Cooperation applies to consumer rules covering various areas such as unfair commercial practices, e-commerce, geo-blocking, package holidays, online selling, and passenger rights.
Compliments of the European Commission.
The post EU Consumer protection: TikTok commits to align with EU rules to better protect consumers first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

“Check against delivery”
Good morning everybody. It’s great to be here in Riga today.
We are going through an energy crisis that threatens our climate goals and energy security and independence all in one.
The ripple effects of the Russian aggression in Ukraine have kick started a huge change in our geopolitical environment. In recent days and weeks, Russia has again and again demonstrated that it is an unreliable supplier who uses energy as a political weapon – trying to single out targets across the EU. The disruptions in gas flows to a number of countries are clearly designed to undermine the EU’s unity and determination in the face of Kremlin’s invasion of Ukraine.
But the EU has remained united. Six packages of sanctions so far have been agreed on.
And remaining united is also extremely important for our energy security during this time.
That underlines the importance of events like the Three Seas Forum. Each member country faces a different energy challenge in this new context, but working collectively can enhance our energy security. Coordination is more important now than ever.
In this new political context, we cannot continue to feed the Russian war machine with our fossil fuel imports.
Instead, we need a plan to look forward. That Plan is RepowerEU: a blueprint to build a future based on a clean energy system without Russian influence.
A plan that builds on our Green Deal, not change the course of it.
Because it would not make sense to try and replace fossil fuels from Russia simply with fossil fuels from somewhere else. It would jeopardise our decarbonisation goals.
The Green Deal existed long before Russia made the decision to attack Ukraine. So we will stay on the same track but pick up the pace with REPowerEU.
To do that, the central element of our Plan is to boost renewable energy even further.
This means more renewable electricity to replace gas in power generation, heating and cooling, more renewable gases to help industry to shift away from gas.
We are proposing to increase our renewables target from the current 40% to 45% by 2030. To back this up, we proposed:

a Strategy for the solar sector to double today’s level by 2025.
a plan to accelerate the production of green hydrogen.
and an action plan to double the production of biomethane by 2030.

If we want to succeed, we need new tools and new approaches. And to find a way around what is preventing us from speeding up production and deployment. That’s why a key part of this Plan is our proposal on permitting procedures. Right now we are looking at almost a decade for some offshore wind projects to get off the ground. Far too long. And time we don’t have to waste.
Our aim is to simplify and prioritise. With our new proposal, renewable energy projects are considered as being in the overriding public interest. And we are also recommending that repowering projects and solar panel installations have shorter and simpler procedures.
And last, we are proposing that Member States can designate ‘go-to’ areas. These are places most suited for developing renewable installations and where the environmental risks are known to be lower. And the definition will be based on a strategic environmental assessment.
Once this is done upstream, individual projects will not need a separate assessment, meaning permitting procedures will be done much faster. In these areas, it shouldn’t take more than a year or six months for repowering projects.
Beyond renewables, diversification must be part of the approach. There is a clear risk to our short-term energy security.
Renewables and energy efficiency are necessary, but not enough. Right now, we can’t match the shortfall from Russian gas with these alone.
Winter is around the corner, and it will be a challenging moment. We are not just looking at high prices, there is a real risk that we do not have enough energy for our societies. We need to make sure the impact on citizens and industry is as low as possible. So preparation is key.
Energy storage is our first insurance policy. So we have introduced regulation to ensure that storage levels are filled up to 90% by November 1st each year.
The filling of storage is advancing well, despite the high prices. The EU-wide storage level is already above 50% of capacity, around six percentage points higher than last year at the same time.
We also need to be pragmatic and diversify Russian gas from other reliable sources and through smart investment.
We aim to replace 50 BCM of Russian gas with LNG supplies and 10 BCM with additional pipeline supplies.
And things are already moving in the right direction. Our dependence on Russian imports is already decreasing.
LNG imports are at record levels: 12.6 BCM were imported in April in the EU. This represents a 36% year on year increase for LNG.
Meanwhile, the share of Russian gas imports in the EU is already decreasing.
April 2021 it was 45%, compared with April this year at 31%.
If we look at pipeline gas alone, the reduction is even bigger, from 40% last year to 26%.
Our gas infrastructure and cooperation on security of supply allows us to increase LNG and let the gas flow to where it’s needed. The fact that Gazprom has cut off a number of Member States including Poland, Bulgaria, Finland, the Netherlands and Denmark – and the situation is stable, is proof of this.
I also want to talk about the EU Energy Platform – one of the key drivers of our effort to diversify.
The Platform will:

 aggregate EU gas demand,
Allow us to better and more efficiently use gas infrastructure, like LNG terminals
and carry out outreach to supply partners.

We are also working to set up a joint venture mechanism that will help us purchase gas directly and redirect it in a competitive way among interested Member States.
As part of the Platform, we have already established the first regional sub-platform for South Eastern Europe, to help Bulgaria and neighbouring countries. And they should be an example to follow. We want to see other regional platforms come out of the Three Seas Group as soon as possible. There’s no reason that the Baltic Region couldn’t be the next Group, so I’d really encourage the authorities and market actors to make the most of this avenue.
In terms of outreach to international partners, we are quite advanced with the United States, as well as Norway. Last week I travelled to Cairo where we signed an MoU with Egypt and Israel. I will also visit Azerbaijan in July. At the same time, we have intense contacts with Canada, Qatar, Algeria, and others.
Despite all of these efforts, uncertainties remain. That’s why Member States absolutely need to step up preparedness, update the contingency plans in place and conclude any outstanding bilateral solidarity agreements.
I am also giving priority to deliver a coordinated contingency plan for next winter and to provide guidance to Member States on how to organize demand reduction decisions, if it’s needed. So that we know what we will do depending on what happens.
There is no immediate risk to our security of supply, but if needed, we will handle it in the spirit of solidarity and minimising the impact on EU’s citizens and business. The EU is ready to deal with these developments. Already since last year we have been working hard to enhance our preparedness for gas disruptions – including the most serious scenarios.
REPowerEU is a plan for our security and independence in the EU. Individual countries and regions can build on what we have set out. Energy is now being used as a weapon on a daily basis. And as I said earlier, close cooperation is incredibly important to protect against it. Particularly for those countries that are most exposed to Russian threats.
The three Baltic States and Finland have historically been fully dependent on Russian gas.
And infrastructure is going to be key for energy security, for these countries in particular but also the wider EU.
Important developments either have been completed or are in the works.
The Baltic Pipe and GIPL.
A better interconnection between Lithuania and Latvia.
And the ENTSO-G assessment shows us that the FSRU to be installed in either Estonia or Finland latest in 2022 will be a huge help in removing dependence on Russian gas.
Aside from gas, electricity is also an area of security concern because the Baltic States are the last Member States with grids still dependant on third countries.
Synchronisation with the European continental grid is a priority, one that will be completed at the latest by the end of 2025.
And when it’s in place, it will create a more secure energy system as well as increasing renewables uptake in the region.
Ladies and gentlemen,
As I see it, these are the key drivers to reach a safe and resilient energy system.
I hope this gives you a clear direction of travel and a good basis for your discussion in a few moments.
Thank you very much for listening.
Compliments of the European Commission.
The post Speech by Commissioner Simson at the Three Seas Business Forum: ‘Building a Balanced and Resilient Energy Sector in the Three Seas Region’ first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

The European Commission has today adopted a Communication setting out how it can follow up on the outcome of the Conference on the Future of Europe.
After a year of deliberations, the Conference came to an end on 9 May 2022. In the closing ceremony in Strasbourg, the Presidents of the European Parliament, Commission and Council received a final report from the Conference participants containing 49 wide-ranging, ambitious and forward-looking proposals and 326 individual measures.
These proposals, covering nine broad themes, were based on recommendations made by citizens during the European Citizens’ Panels and the National Citizens’ Panels, and who contributed their ideas through the Multilingual Digital Platform.
While the Conference has delivered in both quantity and quality of proposals, its success will ultimately hinge on the change that it can deliver. In this spirit, the European Commission, along with both the European Parliament and Council, all committed in the Joint Declaration of March 2021 to following up on what was proposed – each within the framework of their competences and in accordance with the Treaties. President von der Leyen repeated this commitment at the Conference closing ceremony.
Today’s Communication is the first step in the Commission’s follow-up. It offers an assessment of what is needed to follow up on the Conference’s proposals, gives an overview of the next steps and sets out how best to learn the lessons from the Conference and embed participative democracy into the EU’s policy and law-making. For instance, building on the success of the European Citizens’ Panels in the Conference, the Commission will enable these panels to deliberate and make recommendations ahead of certain key proposals, as part of its wider policy making and in line with Better Regulation principles.
President Ursula von der Leyen said: “European citizens have given us rich and wide-ranging ideas to improve our Union: 49 detailed proposals and more than 300 measures to make everyday life better. To build a better future. We promised to follow up. Today’s Communication is the first step in doing so. I will always stand by those who want to reform our Union for the better.”
Analysis of proposals and next steps
The Commission believes that for the assessment of the proposals to be credible, it is essential to stick to the spirit and the letter of what is proposed – without any re-interpretation or selection. This is what is set out in the annex to this Communication. The 49 proposals are divided up into the same thematic areas chosen by the Conference, with the Commission’s assessment set out under each area.
The annex sets out four categories of responses: existing initiatives that address the proposals (e.g. the European Climate Law); those already proposed by the Commission where the European Parliament and the Council are called upon to adopt (e.g. the New Pact on Migration); planned actions which will deliver on the ideas, building in new reflections from the Conference (e.g. the Media Freedom Act); and new initiatives or areas of work inspired by the proposals, falling within the remit of the Commission (e.g. issues related to mental health).
The first set of new proposals will be announced in President von der Leyen’s State of the Union address in September 2022, as well as in the accompanying Letter of Intent. These proposals will be amongst those to be included in the 2023 Commission work programme and beyond. In following up, the Commission will ensure that new reforms and policies are not mutually exclusive to discussions on the need for Treaty change, focusing on making the most of what is currently possible, while being open to Treaty change where that will be necessary.
To keep the citizens who have participated in the Conference informed, and to keep up the momentum, a Conference feedback event will be organised in autumn 2022. This event would be the moment for communicating and explaining how the three EU institutions are following up and taking stock of progress at that stage of the process.
Members of the College said:
Vice-President Dubravka Šuica: “The success of the Conference on the Future of Europe is a result of the dedication, engagement and rigour of all the citizens involved. They have articulated their vision of the future and have entrusted us with its delivery.”
Vice-President Maroš Šefčovič: “People from right across Europe put huge energy and effort into agreeing these 49 proposals. I witnessed this first-hand, particularly in the area of health. It is now for us in the EU institutions to put that same energy and effort into responding to their calls. By feeding the outcomes of the Conference into the 2023 Commission Work Programme, we can demonstrate clearly to citizens that not only have we listened to them, we have heard them.”
Vice-President Věra Jourová: “The Conference on the Future of Europe created momentum to listen more attentively to the people of Europe. Now we must bring forth tangible results. Today‘s Communication is the first step on the path to delivery and provides for concrete follow-up to the recommendations presented by citizens.”
Background
President von der Leyen called for a Conference on the Future of Europe in her Political Guidelines of July 2019, as part of a vision for a new push for European democracy – and committed to following up on its results.
The Conference on the Future of Europe, which kicked off on Europe Day 2021, ran for one year. It was an unprecedented pan-European exercise in deliberative democracy – the largest and broadest of its kind. It connected people from all ages, countries and backgrounds, many of whom had never engaged with Europe or were not familiar with the European Union’s institutional make-up. They all brought their different stories and perspectives, their different languages and identities to set out their expectations of Europe and to weave together a vision of its future.
The proposals made by the Conference include 326 measures for the EU institutions and Member States to follow up on under nine topics: climate change and the environment; health; a stronger economy, social justice and jobs; EU in the world; values and rights, rule of law, security; digital transformation; European democracy; migration; education, culture, youth and sport.
Compliments of the European Commission.The post EU Commission sets out first analysis of the proposals stemming from the Conference on the Future of Europe first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Today, the European Commission presented its Opinions on the application for EU membership submitted by Ukraine, Georgia and the Republic of Moldova as invited by the Council. Today’s Opinions are based on the Commission’s assessment in light of the three sets of criteria to join the EU agreed by the European Council: political criteria, economic criteria and the ability of the country to assume the obligations of EU membership (EU acquis). The Opinions also take into account Ukraine, Moldova and Georgia’s efforts in implementing their obligations under the Association Agreements (AA), including the Deep and Comprehensive Free Trade Areas (DCFTA), which cover significant parts of the EU acquis.
The European Commission has found that Ukraine overall is well advanced in reaching the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; has continued its strong macro-economic record, demonstrating a noteworthy resilience with macroeconomic and financial stability, while needing to continue ambitious structural economic reforms; and has gradually approximated to substantial elements of the EU acquis in many areas.
On this basis, the Commission recommends that Ukraine be given the perspective to become a member of the European Union. It should be granted candidate status on the understanding that steps are taken in a number of areas.
As regards Moldova, the European Commission concludes that the country has a solid foundation in place to reach the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; macroeconomic policies have been reasonably sound and progress has been made in strengthening the financial sector and business environment but key economic reforms remain to be undertaken; the country has established a solid basis to further alignment with the EU acquis.
On this basis, the Commission recommends that Moldova be given the perspective to become a member of the European Union. It should be granted candidate status on the understanding that steps are taken in a number of areas.
The European Commission assesses that Georgia has a foundation in place to reach the stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities, even if recent developments have undermined the country’s progress; it has achieved a good degree of macroeconomic stability and has a sound record of economic policy and a favourable business environment, but further reforms are needed to improve the functioning of its market economy; and overall, Georgia has established a solid basis for further alignment with the EU acquis.
On this basis, the Commission recommends that Georgia be given the perspective to become a member of the European Union. It should be granted candidate status once a number of priorities have been addressed.
Ursula von der Leyen, President of the European Commission, said: “Ukraine, Moldova and Georgia share the strong and legitimate aspiration of joining the European Union. Today, we are sending them a clear signal of support in their aspirations, even as they face challenging circumstances. And we do so standing firm on our European values and standards, setting out the path they need to follow in order to join the EU. The Commission’s opinions mark an inflection point in our relations. Indeed, this is a historic day for the people of Ukraine, Moldova and Georgia. We are confirming that they belong, in due time, in the European Union. The next steps are now in the hands of our Member States.”
Olivér Várhelyi, Commissioner for Neighbourhood and Enlargement, said: “We have worked quickly and efficiently to be able to present our opinions in record time. We expect member states to take forward decisions in the coming days, but our partner countries should already start working to deliver on their side on the key reforms outlined in our recommendation. This is crucial in order for Ukraine, Moldova and Georgia to move ahead on their EU path.”
Next steps
Based on the European Commission’s Opinions, the EU Member States will now have to decide unanimously on the next steps.
The applications for EU membership by Ukraine, Georgia and Moldova in light of the Commission’s Opinions will be discussed at the next European Council on 23 and 24 June. In the meantime, the EU remains committed to continue to further strengthen ties and deepen their partnership to support Ukraine, Moldova and Georgia, in line with our Association Agreements and Deep and Comprehensive Free Trade Areas.
Background
On 28 February 2022, Ukraine presented its application for EU membership.
On 3 March 2022, Georgia and the Republic of Moldova presented their applications for EU membership.
On 7 March, the Council of the European Union invited the Commission to submit its Opinions on these applications. Ukraine received the part of the questionnaire on the political and economic criteria on 8 April 2022 and the part on the EU acquis on 13 April. Ukraine provided its replies on 17 April and on 9 May respectively. Georgia and Moldova received the first part of the questionnaire on the political and economic criteria on 11 April 2022 and the part on the EU acquis on 19 April. Moldova provided its replies on 22 April and 12 May. Georgia provided its replies on 2 and 10 May
Compliments of the European Commission.The post The European Commission recommends to Council confirming Ukraine, Moldova and Georgia’s perspective to become members of the EU and provides its opinion on granting them candidate status first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.