Insights from Inline Policy
Referendums are transformative events. Governments may come and go, but a decision to stay in or leave an economic union like the EU is an irrevocable judgement on the nation’s destiny – the most important decision in the lifetimes of voters in the UK. The implications will affect everything from the regulation of the air we breathe to the pensions we invest in. For the financial services sector, the general investment climate in the UK, as well as the contours of central bank policy on the equity banks must retain as capital buffers will be shaped by the outcome on June 23.
2015 was a significant year for climate and energy policy and markets: from the momentous Paris agreement to Obama’s continuing push on the Clean Power Plan; from the new British Government’s fresh (and controversial) energy approach to, at last, some stability for the EU Emissions Trading System (ETS), which may have real implications for the longer-term.
According to recent research by management consultancy A.T. Kearney, the global market for 3D printing is set to grow from $4.5 billion today to $17.2 billion by 2020. With this rapid growth will come added scrutiny from policy makers and regulators. To support its long term growth, and for the industry to fulfil its remarkable potential, a supportive regulatory and policy framework will be critical. To help build this framework, and to put in place policies that will stimulate industry growth and accelerate the uptake of 3D printing technology across the economy, it will be imperative for industry associations to play their part and to engage with key policy makers and regulators.
On a day when the entire financial services industry in the UK and in Continental Europe dissected the long-awaited – albeit leaked – European Commission Action Plan on Capital Markets Union, a few eyebrows were raised about some potential implications for the fintech community. Regulators at national and supranational level are still pondering over an optimal regulatory framework to promote the fintech industry whilst at the same time ensuring adequate consumer protection; but not necessarily on a like-for-like basis with the established providers, who are already beginning to use the ‘level playing field’ argument to challenge the disruptors.
The EU Emissions Trading Scheme (ETS), the EU’s flagship climate policy instrument aimed at reducing greenhouse gas emissions at least economic cost and incentivising investment in the low-carbon economy, has been back in the news - for once in a positive sense.
In a speech at the European Parliament plenary debate on Monday 6th July, First Vice-President of the European Commission, Frans Timmermans, said that the Commission “remains strongly committed” to present a circular economy package towards the end of this year. The reasons are quite simple: Vice-President Katainen, Commissioner Vella, Commissioner Bienkowska, and others, essentially believe that the new circular economy package can bring:
In February of this year, the European Commission unveiled its Green Paper for ‘Building a Capital Markets Union’. Over the coming five years it will be the flagship project for the Directorate General responsible for Financial Stability, Financial Services and Capital Markets Union (DG FISMA). The Green Paper clearly states that the European Commission’s objective is to stimulate economic growth, largely through simpler access to capital markets, which will diversify the sources of SME financing and in turn support their growth. So what does the Capital Markets Union (CMU) mean for new innovative and a high growth companies? How does the CMU plan address their many concerns whilst also building on their many achievements?
Crowdfunding is now considered a legitimate alternative form of finance for businesses across Europe. The sector continues to grow and shows no signs of slowing down. Investment-based (or equity) crowdfunding is no exception – according to a recent report by NESTA, this form of crowdfunding grew by 201 per cent in 2014.
If last autumn was the settling-in period, the New Year is the time for the new European Commission to get moving on its priorities. The European Parliament elected last May has now bedded in, the Committees have established a work programme, and the parliamentarians will be keen to start making an impact on policy-making and regulatory measures. The next few months are therefore likely to see a lot of activity. As energy policy - and its multiple linkages with the wider European economy - has already been highlighted by Juncker and his senior lieutenants as one of the most important issues on the agenda, Commission officials in DG Clima and DG Energy are going to be busy, as will the ENVI (Environment) and ITRE (Industry, Trade and Energy) Committees in the Parliament. This piece analyses the key themes and what may merge in terms of concrete policy or legislative proposals.
In our recent analysis piece about the future regulation of remotely piloted aircraft systems (RPAS), we provided some insight into the main EU institutions and agencies involved in the creation of harmonised rules across Europe. Since then, the 2016 deadline the European Commission had initially set for new regulations to be approved has been removed, and not replaced.
In Lima, at the beginning of this week, after two weeks of the usual tortuous negotiations, the 196 parties to the UN Framework Convention on Climate Change (UNFCCC) emerged with the Lima Call for Climate Action. This sets out the main priority issues for the parties in relation to the landmark COP 21 in Paris in December 2015 - the deadline for an international agreement on climate change - and attaches a 39-page document (a “non-paper”) containing various options for different elements of a draft negotiating text.
This note analyses Lima’s outcomes and the prospects for an international climate agreement in Paris 12 months away.
On 1 December representatives of the 196 parties (member countries) to the United Nations Framework on Climate Change (UNFCCC) will gather in Lima for the annual Conference of the Parties (COP) international meeting. The climate negotiations have in recent years - especially since the conspicuous failure of parties at Copenhagen in 2009 to agree an international treaty - tended to be regarded as a non-event, an interminable discussion from which nothing material ever emerges. Will Lima, COP 20, be any different?
This article follows up a recent piece I wrote on the importance of agreeing a 2030 climate and energy framework at last month’s European Council. Following that agreement in Brussels, this article analyses some of the interesting (and surprising) elements of the agreement, and looks ahead to how the agreement will be followed up over the next few months.
This Thursday and Friday, 23 and 24 October, at the European Council in Brussels, EU Heads of Government will take their most significant decision on climate change and energy policy for nearly six years, i.e. since the 2020 framework was passed into legislation. On the agenda this week is a prospective political agreement on the policy framework for climate and energy up to 2030, setting relevant targets to deliver that framework. Energy security is also on the agenda, with the Council reverting to its discussions in June on the European Commission report on how to reduce dependence on Russian gas.
Remotely Piloted Aircraft Systems (RPAS), more commonly referred to as ‘civil drones’ or ‘unmanned aerial vehicles’ (UAVs), can perform tasks that manned systems are sometimes unable to perform. They can be useful for surveillance purposes, border control, agriculture, firefighting, or media and entertainment, amongst other applications. The EU and some of its Member States have in recent years acknowledged the benefits of this new technology. The latter have, in certain cases, introduced new regulations that enable the industry to flourish, whilst minimising potential issues that may arise within their territory.
The temperatures are falling; the mornings and nights are getting a little darker; it feels like autumn is just around the corner - it’s back to school time! This particularly applies to the politicians and civil servants who ply their trade in Brussels on EU policies and regulation. The new European Parliament barely had time to convene before it departed for the summer break. At the European Commission, all eyes are on new President Jean-Claude Juncker as the horse-trading between him and member states for the top political jobs in Brussels, including Commissioner portfolios, reaches its climax over the next two weeks.
Price Comparison Websites (PCWs) are popular tools amongst tech-savvy consumers, especially in the consumer goods, energy and financial sectors. The key to their attractiveness is that they allow consumers to quickly search for and compare the best deals in the market. PCWs usually operate on either a flat-fee, or a commission-based model and attract new customers via online and offline advertising. Some of the biggest players have become very profitable, thus attracting new companies to enter the market.
At the beginning of the month, the European Banking Authority (EBA), the institution charged with overseeing the European banking sector, proposed guidelines for a regulatory regime for virtual currency. The report has now been presented to the EU Council, Commission and Parliament for consideration. The report also issues guidelines for national supervisory bodies.
Goldman Sachs received an $800,000 fine from US regulators a fortnight ago for failing to meet the guidelines for trading within a private forum. Private trading platforms, commonly known as dark pools, now account for 15% of all US trading over 40 closed exchanges. Regulators are beginning to take note and see how they can limit the risk involved.
The questions of who will occupy the top jobs on environment and energy in Brussels over the next five years, particularly in the European Parliament (EP) and in the European Commission, will matter greatly. There is a big policy agenda ahead, coming at a testing time for European policies on energy markets and security of supply, which will have price implications for industry and consumers, and the decarbonisation strategy.
