Insights

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Could rising energy prices leave the industry out in the cold?

Energy & Commodities

Frederick Michell
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Energy prices have been rising across the world over the past weeks. Energy prices fluctuations have already occurred in the past, but this time the world is emerging from a global pandemic and high gas and power prices could hamper recovery. End consumers impoverished by covid-19 are now faced with higher bills, and businesses are either pushed out of the market or…

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Morten Petersen MEP: Will Fit for 55 get the EU to net zero?

Energy & Commodities

Tom White
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The Fit for 55 package currently being negotiated sets out much of the legislative backbone that will drive Europe toward net zero. A key challenge that could break the green deal’s success is achieving effective integration of energy systems in transport, industry and power production across the 27-member bloc. Billions of investments are at stake and European operators…

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Does the EU need a revamped critical raw materials strategy?

Energy & Commodities

Giovanni Scomparin
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The ‘Fit for 55’ package released by the European Commission in July will mandate EU member states to boost renewable energy deployment, upgrade the EU clean vehicle charging infrastructure and phase out internal combustion engine vehicles. Reaching these targets will require a sizeable ― indeed unprecedented ― amount of critical raw materials (CRMs). This has already…

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Buckle up: the impact of the Fit for 55 package for industry

Energy & Commodities

Tom White
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Three weeks after its release, industry stakeholders and policy makers are reacting to the European Commission's Fit for 55 Package. The set of proposals consists of twelve highly interlinked measures across emissions pricing, transport and energy.

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Fit for 55 and the future of European energy companies

Energy & Commodities

Giorgio Corbetta
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The energy companies emerging from the flurry of legislation the European Commission will release on July 14th will be very different from the existing ones. As the energy sector is compelled to reduce its emissions to close to zero by 2050 to achieve the EU net-zero goal, the commission is using its executive power to forge a new model of energy business that better fits…

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Can the UK 'go its own way' on energy policy?

Energy & Commodities

Tom White
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Tom White, Director; Ermenegilda Boccabella, Energy and Climate Adviser and Lilah Howson-Smith, Senior Associate discuss the UK's emerging priorities on energy policy after leaving the EU.

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A place for “stranded” assets in the EU’s dual transition

Energy & Commodities

Giorgio Corbetta
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As the EU’s commitment to carbon neutrality by 2050 is enshrined in law, a gap in the bloc’s policy agenda remains a realistic role for fossil-fuel related industries. Almost two decades on from the first use of the term “stranded investments” – investments, such as fossil fuel power generation or transmission, that have already been made but which, prior to the end of…

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European Green Deal

Energy & Commodities

Ermenegilda Boccabella
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The Commission’s ambitions to lead the world in action on climate change will continue to rub against member states’ imperatives to manage the economic costs. Under Frans Timmermans, a team of Commissioners therefore have a huge task of putting together a European Green Deal. The Commission is already clear this will prioritise strong environmental protection, support for…

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A defining green moment for sustainable finance

Energy & Commodities

Elizabeth Beall
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Something that was easy to miss amidst the headlines of net-zero targets and climate emergency is the release of the EU’s Technical Expert Group on Sustainable Finance’s taxonomy technical report. The name and the length – more than 400 pages – may be off-putting, but this document holds significant implications for the wider sustainability and climate change agendas,…

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Long term consensus on energy policy must survive short term challenges

Energy & Commodities

Andrea Ninomiya
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This is an excerpt from Global Counsel's latest publication Europe in the Global Economy, which can be downloaded in full here.

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The EU ETS and Brexit’s first billion euro problem

Energy & Commodities

Matthew Duhan
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Complex, arcane and underperforming, the EU Emissions Trading Scheme has emerged as Brexit’s unlikely first billion euro problem[1]. Superficially, the challenge is a technical one; how to manage the uncertainty over what might arise from a disorderly UK exit from the EU ETS, including the future of UK allowances worth almost €1 billion to UK government and industry in…

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The UK's relationship with Euratom: What next?

Energy & Commodities

Matthew Duhan
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As Global Counsel and Herbert Smith Freehills convene a discussion on the UK’s future relationship with Euratom, this paper provides an overview of the legal and political background. The paper also identifies some of the potential options for mitigating the impact on the UK. Lastly, the paper identifies the six next steps the UK must undertake if it is to minimise…

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Ofgem, price caps, and the dangers of Italian design

Energy & Commodities

Matthew Duhan
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Prime Minister Theresa May restarted the UK energy bills debate last week, announcing a draft Energy Bill which would allow Ofgem – the UK national energy regulator – to cap household energy bills in the form of the time-limited introduction of a ‘safeguard tariff’. While the GC energy practice watched from afar in Rome, some unexpected lessons from the Italian market…

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Strong Currents: Navigating the post-Brexit energy market

Energy & Commodities

Matthew Duhan
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In collaboration with Herbert Smith Freehills and The Boston Consulting Group, Global Counsel has co-authored a paper looking at the impact of Brexit on the energy sector in the UK and the EU. The paper identifies key energy and climate change policy implications as well as highlighting the role of business in shaping post-Brexit outcomes for the sector.

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Brexit and energy: the view from Europe

Energy & Commodities

Matthew Duhan
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Today, the BEIS Select Committee released its report on the UK government’s Brexit negotiating priorities on energy and climate change. The report highlights important issues, including the need for a delay in the UK’s exit from nuclear cooperation agreement Euratom, potential “special arrangements” to maintain a single Irish energy market, and the view that the UK…

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Brexit’s nuclear option

Energy & Commodities

Matthew Duhan
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Yesterday’s government White Paper on Brexit confirmed that the UK will leave the European nuclear research and cooperation framework Euratom. Having concluded that Euratom is “uniquely legally joined” with the EU, the government argues that Brexit will require the UK to leave Euratom when it leaves the EU. While Euratom has its own treaty status, it is the central role…

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UK energy policy and Brexit

Energy & Commodities

Matthew Duhan
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Brexit has the potential to increase significantly the UK’s autonomy in making energy and climate change policy. How much will largely depend on the prior question of what, if any, relationship the UK has with the EU’s internal energy market. Broadly, there are three options: membership, access and exit. While access without membership looks the most plausible outcome,…

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EU carbon market reform: a victory for compromise over ambition

Energy & Commodities

Matthew Duhan
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Yesterday the price of carbon in the EU Emissions Trading Scheme (EU ETS) – the carbon market the EU describes as its principal policy tool for decarbonisation - hovered around €6 per tonne of carbon (€/tCO2), far below the €30/tCO2 analysts consider the minimum price for driving emissions reductions and low carbon investment. That morning Conservative MEP Ian Duncan…

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