The information was translated using the ChatGPT service.
On December 7th, 2023, a meeting of the European Union Competitiveness Council (hereinafter - the Council) took place in Brussels, focusing on issues related to the internal market and industry. Latvia's position in the Council was presented by Jurģis Miezainis, Parliamentary Secretary of the Ministry of Economics.
During the session, the Council discussed the Industrial Zero-Emission Act - a proposal for a regulation aimed at strengthening the resilience and competitiveness of zero-emission technology production in the EU. The European Green and Digital Transformation aims to develop industrial capabilities in crucial technologies such as solar, wind energy, batteries, heat pumps, etc. This is particularly important at a time when there is global competition for leadership in the production of these technologies.
Since 1999, Latvia has actively worked on improving the business environment, with a current focus on an innovative business environment and strategic investments in clean energy technologies. Therefore, Latvia supports the adoption of the regulation and the strategic investment directions included in it, covering areas such as bioeconomy, biomedicine, smart energy, and ICT. These areas are crucial for transitioning to a clean energy economy. Latvia also supports the inclusion of nuclear energy in the list of strategic technologies and would like to include biotechnology solutions for climate and energy in this list as well.
At the same time, Latvia emphasized during the meeting that it does not want to strengthen regulations regarding EU-made technology procurements and auctions, as this could lead to an increase in the cost of renewable energy resources. "Given the availability of local renewable fuels in the country and its significant role in creating the proportion of renewable energy, ensuring energy independence and providing thermal energy, it is important for Latvia that the use of solid biomass in central heating is not deliberately obstructed. Stricter conditions could increase the costs of renewable energy projects, which could negatively impact industrial competitiveness," noted Jurģis Miezainis, Parliamentary Secretary of the Ministry of Economics.
At the end of the discussions, member states reached a general approach regarding the Regulation project and handed it over for trialogue with the European Parliament. Considering that the European Parliament's proposals include a broader range of technologies than in the approved version of the Regulation, Latvia will continue to advocate for technologies of interest in the trialogue process.
In the continuation of the meeting, the Council discussed the proposal for a Regulation to ban products manufactured using forced labor from the EU market, which was presented by the European Commission in 2022. The aim of the regulation is to prohibit products produced using forced labor, including child forced labor, at any stage of their value and supply chains from being placed on the EU market and made available in the EU, as well as to export products manufactured using forced labor from the EU. Several open issues were also discussed, such as the role of the European Commission in researching and proving the use of forced labor, financial compensation for forced labor victims, the division of responsibilities among supervisory authorities involved, cooperation with third countries, and the imposition of penalties.
Latvia expressed support for the Regulation project during the meeting, emphasizing that the regulation should not create a burden for national supervisory authorities and companies. Therefore, Latvia highlighted the need to increase the role of the European Commission in implementing the regulation, participating in the investigation and sanction application processes, as well as establishing a unified EU contact point for information exchange between all relevant authorities responsible for combating forced labor.
The issue proposed to be addressed with the help of the Regulation is relevant, and it requires a constructive solution. At the same time, it would not be acceptable to hold entrepreneurs responsible for investigative activities, proving violations, etc. It is also necessary to develop guidelines for entrepreneurs' actions in such situations without creating additional administrative burdens," noted Jurģis Miezainis during the discussion.
Additionally, during the session, member states were acquainted with the non-paper prepared by Denmark on reducing administrative burden for companies, especially small and medium-sized enterprises. The proposals emphasized the need for secure and uninterrupted data exchange in the field of sustainable reporting. Latvia positively assesses the intention to standardize, digitize, and reduce reporting requirements for companies, therefore, joined the distributed statement.
Additional information on the issues discussed at the meeting of the Competitiveness Council on December 7th, 2022, is available on the official website of the EU Council.