The New EU Political Landscape for Cities and Energy

The main message from Ursula Von der Leyen at the beginning of her new mandate is a combination of ‘industry’, ‘competitive’ and ‘clean’. Just about everything will tap into one of those three themes and frequently all three of them at the same time.

Broadly, she is planning an era of industrial strategy and direct intervention to drive investment, increase enforcement of previous legislative efforts and simplify regulation. The good news is the Green Deal remains central to her platform and is viewed as a way of achieving economic growth as opposed in competition with economic growth.

If all goes well the new Commission should be in place by December 1^st. If the Parliament rejects one or two candidates (which they often do) the new Commission could be delayed until Jan. 2^nd.

Raffaele Fitto – Executive VP for Cohesion and Reforms

Responsible for cohesion, regional development and cities portfolio – the first time cities warrant such a prominent descriptor. He has been directed to achieve a “cohesion policy aligned to wider EU priorities, more focused, simpler and help mobilise reforms and investments”. These are welcome words but easier said than done. Cohesion funding has traditionally been far too difficult to access and spend.

That underspend meant there was lots of money left around to create the recovery and resilience plans. That money must be spent by 2026. This will be a big challenge for the new Commissioner.

He will also be responsible for NextGenerationEU spending where involvement of regional and local authorities was the only priority highlighted.

Finally, he will contribute to the Affordable Housing Plan (notably by doubling the allowed cohesion funding to be spent on housing) and put forward “an ambitious policy agenda for cities” that looks at housing, climate action, digitalisation, mobility, social inclusion and equality.

Teresa Ribera – EVP for Clean, Just and Competitive Transition

The second most powerful person in the European Commission and currently Spain’s minister for the ecological transition. She will have overall responsibility for implementation of the Green Deal and the Clean Industrial Strategy as well as competition law and reducing reporting requirements for business.

One of her first challenges will be getting a 90% emissions reduction target in the EU Climate Law. Most of the more specific work on climate and energy will be delegated to the Commissioners who will report to her: Hoekstra (NL, Commissioner for Climate, Net Zero and Clean Growth), Roswall (SE, Commissioner for Environment, Water Resilience and a Competitive Circular Economy) and Jørgensen (DK, energy and housing).

Dan Jørgensen – Commissioner for Energy and Housing  

Housing is not a traditional competence but the housing crisis in many countries has forced the commission to react. There will be a task force outside DG Energy that will report to the energy Commissioner. Major moves include doubling cohesion funding limits for housing and relaxing state aid rules for housing. Remains to be seen how much focus will go on funding renovations compared to new builds.

Under energy, Jørgensen has a clear mandate to reduce energy costs and increase electrification as well as end Russian energy imports. Consumer participation is also a significant focus – both through energy communities but also in terms of flexibility with dynamic price tariffs and grid congestion charges. His longer-term focus will includes grid interconnectors and shortening the approval period for new interconnectors as well as investing in research for small nuclear reactors in the next decade.

Disappointingly, decarbonising heat warrants a relatively small mention within his mission letter, possibly reflecting the nervousness of Commission officials to getting drawn into the heat politics that have occurred in Germany. But the work on electrification should also include measures to increase heat pump deployment.

The single most important element of the letter is the focus on implementation of existing energy legislation. There are already pending infringement proceedings against member states for failure to properly transpose the Clean Energy for All package from 2019 and we can expect a lot more pressure and scrutiny of countries’ efforts to transpose the latest versions of Directives on Energy Efficiency, Renewable, Buildings and Electricity Markets.