COUNCIL OF THE EUROPEAN UNION,update

 

Press material Tuesday 20 February 2024

● Council of the EU   20/02/2024 10:59 | Press release | Consumer rights: final approval for the directive to empower consumers for the green transition   The Council has today adopted a directive to empower consumers for the green transition. The new rules will enhance consumers’ rights by amending the unfair commercial practices directive (UCPD) and the consumer rights directive (CRD) and adapting them for the green transition and the circular economy. This is the last step in the decision-making procedure. "Thanks to the directive adopted today, consumers will be better informed, better protected and better equipped to be real actors of the green transition." Pierre-Yves Dermagne, Belgian Deputy Prime Minister and Minister of the Economy and Employment Protecting against unfair practices The directive will protect consumers against misleading ‘green’ claims, including about unfair claims about carbon offsetting. It will also clarify the traders’ liability in cases of information (or lack of information) on early obsolescence, unnecessary software updates or the unjustified obligation to buy spare parts from the original producer. The directive will also improve the information available to consumers to help them make circular and ecological choices. For instance, products across the EU will bear a harmonised label with information on the commercial guarantee of durability. Next steps Following the Council’s approval today of the European Parliament’s position, the legislative act has been adopted. After being signed by the president of the European Parliament and the president of the Council, the directive will be published in the Official Journal of the European Union and will enter into force on the twentieth day following its publication. Background The proposal was presented on 30 March 2022 under the responsibility of commissioner Didier Reynders. It is one of the initiatives set out in the Commission’s 2020 New Consumer Agenda and 2020 Circular Economy Action Plan and comes in follow-up to the European Green Deal. It is part of a package of four proposals, together with the ecodesign regulation and the directive proposals on green claims and promoting repair (right to repair). Council and Parliament reach provisional agreement to empower consumers for the green transition Circular economy (background information) Council’s position Commission’s proposal

Press material Tuesday 20 February 2024

● Council of the EU   20/02/2024 10:33 | Press release | MiFIR and MiFID II: Council adopts new rules to strengthen market data transparency   The Council adopted changes to the EU’s trading rules, which will give investors a better access to the market data necessary to invest in financial instruments and increase the global competitiveness of the EU’s capital markets and ensure a level playing field. The changes concern the Markets in Financial Instruments Regulation (MiFIR) and the Markets in Financial Instruments Directive (MiFID) which together regulate investment services and financial markets activities in the EU. The aim of the new rules is to empower investors, in particular by making consolidated market data easily available at EU level. Consolidated market data Currently, trading data is scattered across multiple platforms, such as stock exchanges and investment banks, making it difficult for investors to access the accurate and up-to-date information they need to take decisions. The rules adopted today establish EU-level ‘consolidated tapes’, or centralised data feeds for different kinds of assets, bringing together market data provided by platforms on which financial instruments are traded in the EU. The consolidated tapes will aim to publish the information as close as possible to real time. As a result, investors will have access to up-to-date transaction information for the whole of the EU. This will make it easier for both professional and retail investors to access key information such as the price of instruments and the volume and time of transactions. Payment for order flow The new rules also impose a general ban on ‘payment for order flow’ (PFOF), a practice through which brokers receive payments for forwarding client orders to certain trading platforms. Member states where the practice of PFOF already existed may allow investment firms under its jurisdiction to be exempt from the ban, provided that PFOF is only provided to clients in that member state. However, this practice must be phased out by 30 June 2026. Commodity derivatives The review also introduces new rules on commodity derivatives. Next steps This is the final step of the adoption procedure. The texts will now be published in the EU’s Official Journal and enter into force 20 days later. The regulation will apply immediately in all EU countries, whereas the member states will have 18 months to bring into force the laws, regulations and administrative provisions necessary to comply with the directive. Background On 25 November 2021 the Commission presented a review of the Markets in Financial Instruments Regulation (MiFIR) and the Second Markets in Financial Instruments Directive (MiFID II), which together regulate investment services and financial markets activities in the EU. The aim of the review is to increase transparency on capital markets, improve competitiveness and ensure a level playing field. Directive on markets in financial instruments Statements on MiFID II Regulation on enhancing data transparency, removing obstacles to the emergence of consolidated tapes, optimising the trading obligations and prohibiting receiving payment for order flow Statements on MiFIR Voting results Capital Markets Union (background information

Meetings Monday 19 February 2024

● Council of the EU   19/02/2024 21:17 | MEETING | Main results - Foreign Affairs Council, 19 February 2024   The Foreign Affairs Council exchanged views on the situation in the Middle East, the Russian aggression against Ukraine, the Sahel and was informed about Belarus.

Press material Tuesday 20 February 2024

● Council of the EU   20/02/2024 03:10 | Press release | Climate action: Council and Parliament agree to establish an EU carbon removals certification framework   Council and European Parliament negotiators reached a provisional political agreement today on a regulation to establish the first EU-level certification framework for carbon removals. The voluntary framework is intended to facilitate and speed up the deployment of high-quality carbon removal and soil emission reduction activities in the EU. Once entered into force, the regulation will be the first step towards introducing a comprehensive carbon removal and soil emission reduction framework in EU legislation and contribute to the EU’s ambitious goal of reaching climate neutrality by 2050, as set out in the European climate law. The deal reached today is provisional, pending formal adoption by both institutions. Main elements of the agreement Scope of the regulation The agreement extends the scope of the regulation to soil emission reductions and maintains an open definition of carbon removals, in line with that used by the UN Intergovernmental Panel on Climate Change (IPCC). It also differentiates between the following carbon removal and emission reduction activities and four corresponding types of units: permanent carbon removal (storing atmospheric or biogenic carbon for several centuries) temporary carbon storage in long-lasting products (such as wood-based construction) of a duration of at least 35 years and that can be monitored on-site during the entire monitoring period temporary carbon storage from carbon farming (e.g. restoring forests and soil, wetland management, seagrass meadows) soil emission reduction (from carbon farming) which includes carbon and nitrous oxide reductions from soil management and, as long as such activities result, overall, in an improvement in the soil carbon balance, wetland management, no tilling and cover crop practises combined with reduced use of fertilizer, etc. The last two activities must last at least five years to be certified and must not lead to land being acquired for speculative purposes negatively affecting rural communities. By 2026, the Commission is tasked with producing a report on the feasibility of certifying activities that result in the reduction of emissions other than those related to soils (carbon and nitrous oxide). The report will be based on a pilot certification methodology for activities that reduce agricultural emissions from enteric fermentation and manure management. Activities that do not result in carbon removals or soil emission reductions, such as avoided deforestation or renewable energy projects, are not included in the scope of the regulation. The co-legislators also agreed to exclude enhanced hydrocarbon recovery from the permanent carbon removal activities and to explicitly clarify that activities and operators in the marine environments are included in the scope of the regulation. The new rules will apply to activities taking place in the EU. However, when reviewing the regulation, the Commission should consider the possibility of allowing geological carbon storage in neighbouring third countries, provided that those countries align with EU environmental and safety standards. Certification criteria and procedure The provisional agreement maintains the Commission proposal’s requirement that carbon removal activities need to meet four overarching criteria in order to be certified: quantification, additionality, long-term storage and sustainability. Based on these criteria, the Commission, assisted by an expert group, will develop tailored certification methodologies for different types of carbon removal activities, with a view to ensuring the correct, harmonised and cost-effective implementation of the carbon removal criteria. The co‑legislators have made some changes to define more precisely on the basis of which criteria the methodologies must be developed and included a list of indications as to which activities should be prioritised. The co-legislators agreed to maintain the key elements of the two-step certification process and the voluntary nature of certification, but included further clarification as to how the certification process works. On sustainability for carbon farming, the co-legislators have added indications on how the sustainability objectives must be understood and have included that a carbon farming activity must always generate at least a biodiversity co-benefit (including soil health and avoidance of land degradation). For carbon farming activities, the provisional agreement gives member states the possibility to provide advice to farmers on the application procedure and allow synergies between the CAP’s identification system for agricultural parcels (LPIS) and the information generated by the certification process under this framework. Use of units The provisional agreement sets out rules on the registration and issuance of the units (corresponding to one tonne of certified net benefit generated by one of the carbon removal or soil/agricultural emission reduction activities) in the public registries and, when developed, the EU registry. The co-legislators have agreed to include that the certified units can only be used for the EU’s climate objectives and nationally determined contribution (NDC) and should not contribute to third countries’ NDCs and international compliance schemes. These rules, including on the corresponding adjustments, will be reviewed in 2026. Monitoring and liability The regulation sets out clear monitoring obligations and liability rules for operators. The negotiators agreed to distinguish between the activity period and the monitoring period (which always covers at least the activity period) and clarified that operators will be liable to address any cases of reversal (i.e. the release of CO2 back into the atmosphere) stemming from a carbon removal activity during the monitoring period. The agreement calls on the Commission to include clear liability mechanisms when developing the certification methodologies. The liability mechanisms should address cases of reversal and the consequences of incomplete or interrupted monitoring and non-compliance by the operators during the monitoring period. They may include collective buffers or accounts of carbon removal units, and up-front insurance mechanisms. EU registry The text agreed by the co-legislators calls on the Commission to establish a common and transparent electronic EU-wide registry four years after the entry into force of the regulation to make information on the certification and units publicly available and accessible, including certificates of compliance and summaries of certification audits. Until then, certification schemes under the framework must provide public registries based on automated and interoperable systems. The co-legislators also introduced rules on the financing of the EU registry, which will be funded by annual fixed user fees that are proportionate to the use of the registry.

Press material Monday 19 February 2024

● Council of the EU   19/02/2024 17:43 | Press release | Russia: Statement by the High Representative on behalf of the European Union on the death of Alexei Navalny   The European Union is outraged by the death of the Russian opposition politician Alexei Navalny, for which the ultimate responsibility lies with President Putin and the Russian authorities. Today at the Foreign Affairs Council we expressed our deepest condolences to his wife Yulia Navalnaya, their children, family, friends and all those who worked with him for the benefit of their country. Russia must allow an independent and transparent international investigation into circumstances of his sudden death. The EU will spare no efforts to hold Russia’s political leadership and authorities to account, in close coordination with our partners; and impose further costs for their actions, including through sanctions. Around the world people have gathered to pay tribute to the memory of Alexei Navalny. In Russia, the authorities tried to prevent the same in a number of places and several hundred people have been detained. They must be immediately released. Mr Navalny had bravely returned to Russia after an assassination attempt with the nerve agent “Novichok” banned under the Chemical Weapons Convention, to which the Russian Federation is a State Party. He was serving several politically motivated sentences in a strict penal colony in Siberia where he was moved to isolate him from the rest of the world. His family’s access to him was restricted. His lawyers are being harassed and three of them have been in pre-trial custody since October 2023. The European Union has repeatedly condemned in the strongest possible terms his poisoning and all politically motivated rulings against him for his legitimate political and anti-corruption activities, calling for his immediate and unconditional release. It has repeatedly called on Russia to ensure his safety and health, including by approaching authorities in Moscow to no avail. Throughout his life, Mr Navalny demonstrated incredible courage, dedication to his country and his fellow citizens and determination, with his anti-corruption work across Russia, a message that attracted many across the country. This is why Putin and his regime were afraid of him, also in the context of Russia’s ongoing illegal war of aggression against Ukraine and the Russian Presidential elections in March. Mr Navalny’s unexpected and shocking death is yet another sign of the accelerating and systematic repression in Russia. The European Union repeats its call on Russia to immediately and unconditionally release all other political prisoners, including Yuri Dmitriev, Vladimir Kara-Murza, Ilya Yashin, Alexei Gorinov, Lilia Chanysheva, Ksenia Fadeeva, Alexandra Skochilenko and Ivan Safronov.

Meetings Monday 19 February 2024

● Council of the EU   19/02/2024 17:15 | MEETING | Agenda highlights - Foreign Affairs Council (Trade), 25-29 February 2024   Ministers will seek the approval of conclusions at the start and at the end of the 13th Ministerial Conference of the World Trade Organization. The Council will also aim to adopt a decision on the position to be taken on behalf of the EU in the World Trade Organization’s 13th Ministerial Conference.

Press material Monday 19 February 2024

● Council of the EU   19/02/2024 14:55 | Press release | Belarus: Council conclusions confirm EU’s unwavering support for democracy and human rights   The Council today approved conclusions reaffirming its unwavering support for the Belarusian people’s quest for a free, democratic, sovereign and independent Belarus as part of a peaceful and prosperous Europe. "Belarus remains high on the EU agenda. We denounce the Lukashenka regime’s continued senseless violation of human rights and unprecedented level of repression ahead of the upcoming elections. Those responsible will be held to account. We stand in solidarity with the Belarusian people and remain determined to mobilise all tools to support their quest for peace and democracy." Josep Borrell, High Representative for Foreign Affairs and Security Policy In its conclusions, the Council expresses its continued and deep concern about the deteriorating human rights situation in Belarus. It strongly condemns the continuing persecution and intimidation campaigns against all segments of Belarusian society, the unprecedented level of repression, and restrictions on political participation, which undermine the potential for fairness and legitimacy of the parliamentary and local elections scheduled to take place on 25 February 2024. The Council expresses its deep concern about the Lukashenka regime’s actions affecting the national identity of Belarus and reaffirms its commitment to supporting and promoting the Belarusian language and culture Furthermore, the Council strongly condemns the continued support provided by the Belarusian regime to Russia’s war of aggression against Ukraine and calls on Belarus to refrain from such actions and to abide by its international obligations. It also condemns the regime’s hybrid attacks at the EU’s external borders, including the instrumentalisation of migrants. The EU has imposed targeted sanctions against the Lukashenka regime, and stands ready to take further restrictive and targeted measures as long as the Belarusian authorities continue their actions. The conclusions also underline the EU's strong support for Belarusian civil society, welcoming the establishment of the EU Consultative Group with Belarusian democratic forces and civil society. Furthermore they recall the EU’s commitment to provide €3 billion to a future democratic Belarus through a comprehensive plan of economic support which aims to build resilience and bring forward democratic reforms, to create new jobs and improve people’s living standards. A future democratic Belarus has a place in the European family. Text of the conclusions Belarus: High Representative Josep Borrell launches a new Consultative Group with democratic forces and civil society, 29 June 2023 Belarus: EU adopts conclusions (press release, 12 October 2020)

Press material Tuesday 20 February 2024

● Council of the EU   20/02/2024 11:22 | Press release | Taxation: Bahamas, Belize, Seychelles and Turks and Caicos Islands removed from the EU list of non-cooperative jurisdictions for tax purposes   Today, the Council removed Bahamas, Belize, Seychelles and Turks and Caicos Islands from the list of non-cooperative jurisdictions for tax purposes. With these updates, the EU list consists of the following 12 jurisdictions: American Samoa Anguilla Antigua and Barbuda Fiji Guam Palau Panama Russia Samoa Trinidad and Tobago US Virgin Islands Vanuatu The Council regrets that these jurisdictions are not yet cooperative on tax matters and invites them to improve their legal framework in order to resolve the identified issues. Reasons for removing jurisdictions from the list This EU list of non-cooperative tax jurisdictions (Annex I) includes countries that either have not engaged in a constructive dialogue with the EU on tax governance or have failed to deliver on their commitments to implement the necessary reforms. Those reforms should aim to comply with a set of objective tax good governance criteria, which include tax transparency, fair taxation and implementation of international standards designed to prevent tax base erosion and profit shifting. The list is updated twice a year to keep track of developments, usually in February and October, under the auspices of the EU finance ministers. Concerning Bahamas and Turks and Caicos Islands, ever since October 2022, deficiencies in the enforcement of economic substance requirements had been identified in both of these jurisdictions by the OECD Forum of Harmful Tax Practices (FHTP). In the FHTP’s most recent assessment, the recommendations to both jurisdictions to remedy these deficiencies were converted from “hard” to “soft” recommendations, which allowed the Code of Conduct Group to consider these jurisdictions compliant with the standard for jurisdictions with no or only a nominal corporate income tax. In October 2023, Belize and Seychelles were included in the EU list of non-cooperative jurisdictions for tax purposes after a negative assessment from the OECD Global Forum with regard to exchange of information on request. Following changes to the applicable rules in these jurisdictions, the Global Forum has granted them both a supplementary review, which will be undertaken in the near future. Pending the outcome of this review, Belize and Seychelles have been included in the relevant section of Annex II. State of play document (Annex II) In addition to the list of non-cooperative tax jurisdictions, the Council approved the usual state of play document (Annex II) which reflects the ongoing EU cooperation with its international partners and the commitments of these countries to reform their legislation to adhere to agreed tax good governance standards. Its purpose is to recognise ongoing constructive work in the field of taxation, and to encourage the positive approach taken by cooperative jurisdictions to implement tax good governance principles. Two jurisdictions, Albania and Hong Kong, fulfilled their commitments by amending a harmful tax regime, and will be removed from the state of play document. Aruba and Israel also fulfilled all of their pending commitments (related to the automatic exchange of financial account information in the framework of the common reporting standard). The Global Forum gave Botswana and Dominica positive ratings with regard to the exchange of information on request, resulting in the deletion of the reference to these jurisdictions in the relevant section. Background The EU list of non-cooperative jurisdictions for tax purposes was established in December 2017. It is part of the EU’s external strategy on taxation and aims to contribute to ongoing efforts to promote tax good governance worldwide. Jurisdictions are assessed on the basis of a set of criteria laid down by the Council. These criteria cover tax transparency, fair taxation and implementation of international standards designed to prevent tax base erosion and profit shifting. The chair of the code of conduct group conducts political and procedural dialogues with relevant international organisations and jurisdictions, where necessary. Work on the list is a dynamic process. Since 2020, the Council updates the list twice a year. The next revision of the list is scheduled for October 2024. The list is set out in Annex I of the Council conclusions on the EU list of non-cooperative jurisdictions for tax purposes. The conclusions also include a state-of-play document (Annex II) identifying cooperative jurisdictions which have made further improvements to their tax policies or related cooperation. The Council’s decisions are prepared by the Council's code of conduct group which is also responsible for monitoring tax measures in the EU member states. The code of conduct group is cooperating closely with international bodies such as the OECD Forum on Harmful Tax Practices (FHTP) to promote tax good governance worldwide. Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes EU list of non-cooperative jurisdictions (background information) Code of Conduct Group (Business Taxation)

Press material Tuesday 20 February 2024

● Council of the EU   20/02/2024 11:47 | Press release | Equality bodies: Council agrees on final text to strengthen their role across the EU   Today, the Council agreed on the final shape of a directive to strengthen the role of equality bodies across the EU in combatting discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The European Parliament will now be asked to give its consent. Equality bodies have been established across the EU to promote equal treatment, combat discrimination and offer assistance to victims. It improves the effectiveness of equality bodies and guarantees their independence by laying down minimum standards for their functioning. "This Directive will significantly strengthen the role of equality bodies as protectors of European citizens' rights, EU values and anti-discrimination principles enshrined in the Treaties. Today's agreement is an important step towards a Union of Equality." Marie-Colline Leroy, State Secretary for Gender Equality, Equal Opportunities and Diversity Equality bodies can only fulfil their role effectively if they are able to act with complete independence. For that purpose, member states will take measures to ensure that equality bodies are independent and free from external influence and do not take instructions from the government or any other entity. Equality bodies should have sufficient staff and resources. Their tasks, according to the directive, should include data collection on equality as well as awareness raising activities, including on the existence of equality bodies and their services. Equality bodies can also issue opinions and decisions, conduct inquiries, and assist victims of discrimination, including before courts. Background and next steps On 7 December 2022, the Commission (Commissioner for Equality, Helena Dalli) published a proposal for a directive on standards for equality bodies in the field of equal treatment between persons irrespective of their racial or ethnic origin, equal treatment in the field of employment and occupation between persons irrespective of their religion or belief, disability, age or sexual orientation, equal treatment between women and men in matters of social security and in the access to and supply of goods and services. This proposal was submitted together with a parallel proposal on standards for equality bodies in the field of equal treatment and equal opportunities between women and men in matters of employment and occupation. The Council reached a general approach on 12 June 2023. Meanwhile, on 12 December 2023, the Council and the European Parliament reached a provisional agreement on the parallel proposal, which has been confirmed by EU member states’ representatives. With the aim of ensuring maximum consistency between the two directives, the Council decided to adjust the text of its original general approach in order to align it with the parallel proposal. The text of the directive agreed today will now be sent to the European Parliament, together with a request to give its consent. Both directives are expected to be adopted in May 2024. Member states will have one year to adapt their national legislation. Standards for equality bodies: Council agrees its positions (press release, 12 June 2023) Standards for equality bodies: Council strikes deal with Parliament (press release, 12 December 2023) Social rights in the EU (background information)