BusinessEuro e CEO Dialogue
Ref. Ares(2022)8011225 - 20/11/2022
Ref. Ares(2023)3263351 - 10/05/2023
Brussels, 10 November 2022
Table of contents
Topics for discussion
1/22
BusinessEurope CEO Dialogue
Brussels, 10 November 2022
Topics for discussion
2/22
BusinessEurope CEO Dialogue
Brussels, 10 November 2022
The G7 actually went one step further in this regard and specifically singled out, in the
“Action Plan for Promoting Data Free Flow with Trust”,
Standard Contractual Clauses
(SCCs) as an instrument for cross-border data transfers that can deliver such
interoperability and therefore data flows with trust.
Standard Contractual Clauses are a key instrument for the EU. It is very important for
EU business to be able to transfer data abroad and it is used also in other countries
and regions (e.g. New Zealand, the Association of Southeast Asian Nations (ASEAN)
model contractual clauses). This is an
example of an instrument that is an element
of convergence that provides a basis to build further and reach interoperability.
The
bilateral relationship between the EU and Japan is a perfect example of Data
Free Flow with Trust in practice. I would just mention in this regard the
EU-Japan
mutual adequacy arrangement, which builds upon convergence between our
respective systems and has created the world’s largest area of free and safe data
flows. The DFFT concept also underpins our
Digital Partnership Agreement and
Economic Partnership Agreement.
Main messages
In May of this year Japan and EU engaged in a Digital Partnership. It will advance
cooperation on digital issues to foster economic growth and a human-centric digital
transformation based on our common values.
Semiconductors are a priority area for enhanced digital cooperation.
Both sides intend to enhance their cooperation to strengthen the resilience of the global
semiconductor supply chain, through
exchanging information on their respective
approaches on monitoring the
semiconductor supply chains, anticipating disruptions and effective early warning
mechanisms and
exploring and promoting
research in areas of combined strength, for example
semiconductor technologies that will enable the future architecture of next
generation computing, power semiconductor technologies, sensing and integrated
photonics.
In the mid- to long-term, we are interested in exploring
cooperation to increase
capacity across the entire semiconductor value chain and jointly striving to ensure a
more geopolitically balanced production.
Topics for discussion
9/22
BusinessEurope CEO Dialogue
Brussels, 10 November 2022
The changing species composition in Central and Northern Europe will result in lower
availability of softwood timber for processing.
The Commission
financially supports the advancement of technology and
innovation through
Horizon Europe, the EU’s research and innovation programme.
Another noteworthy initiative under Horizon Europe is the
circular bio-based Europe
Joint Undertaking: a
EUR 2 billion public-private partnership between the EU and the
bio-based industries that funds projects advancing competitive circular bio-based
industrial solutions.
The industry will have to develop products produced from broadleaf tree species such
as beech, for example for construction timber products.
The Circular Economy Action Plan adopted by the Commission will boost growth,
while making sure that the European economy transitions to carbon-neutrality and
resource-efficiency.
The plan aims to
ensure that used resources stay in the EU economy as long as
possible.
Topics for discussion
12/22
BusinessEurope CEO Dialogue
Brussels, 10 November 2022
Given the importance of skills, the Commission also announced that
2023 will be the
European Year of Skills. It will be an opportunity to reiterate the need for upskilling
and reskilling.
National authorities are not new to the digital skills challenge and many initiatives are
already in place at Member State level. As part of the
Recovery and Resilience
Facility more than
EUR 25 billion of investments have been devoted by Member
States to digital education and skills.
Main messages
AI has enormous potential across the economy, but for much of this potential to be
realised,
citizens need to accept AI. They will not do so if they have the impression
that as soon as AI comes into play, their
normal rights vanish into thin air. Protecting
consumers’ rights and, more generally, fundamental rights and safety is thus not only a
goal in itself, it is also an
indispensable ingredient for the success of AI. This
realisation has driven first the EU, but increasingly also other countries, to address
these issues already now, rather than to wait for major problems to develop.
Nevertheless,
such regulation should not forestall the development of the
technology. That’s why the European regulatory approach focuses on the
limited
number of “high-risk” applications where safety or fundamental rights of individuals
are at stake. The applications are listed in the AI Act in an exhaustive manner, i.e.
everything that is not specifically identified as a “high-risk” AI application does not fall
within the scope of the regulation. In this manner,
the vast majority of applications
can not only be developed without additional procedures, but also in complete
legal certainty.
As far as the
small number of “high-risk” AI applications is concerned, the AI Act
provides for
light requirements. These requirements are to a large extent normally
met by the producers; for example the product should be accurate, robust and
cybersecure. Therefore, it is expected that even for those cases
no significant
additional burden will arise.
At the same time, one has to realise that the
technology is developing very rapidly
indeed. For this reason, we have introduced an
accelerated revision mechanism for
the list of high-risk applications, allowing the legislators to
react swiftly to emerging
phenomena rather than trying to unnecessarily prevent technological progress.
The Commission’s proposal also includes
measures in support to industry and
innovation (like the regulatory sandboxes) to facilitate compliance.
Finally, I would like to mention the publication of the
Coordinated Plan on AI, which
details actions to be taken by the Commission and the Member States to support the
uptake of AI.
Topics for discussion
15/22
BusinessEurope CEO Dialogue
Brussels, 10 November 2022
Demand response – which improves the efficiency of the overall system is key to
this.
I know that in September, SmartEn launched a major study carried out with
independent consultants
which quantifies the benefits of demand-side flexibility with
very substantial gains from demand response
But realising these benefits requires having the right market arrangements in
place. The first step to doing this is fully implementing the Clean Energy Package –
and we can use the redesign of the electricity market to make
targeted
improvements.
In our Communication of 18 May 2022 “Short-Term Energy Market Interventions and
Long Term Improvements to the Electricity Market Design – a course for action”, the
Commission sets some
first areas of reflection, with in particular a mention of
demand response and flexibility.
Accelerating the investments in smart grids, including an accelerated rollout of
fit-for-purpose smart meters would
enable consumers to react to prices and
enable the development of demand side flexibility.
The
Digitalisation of Energy Action Plan recently adopted proposed measures to
enhance
data exchange and interoperability, and to support the development of
digital tools for consumers. This will make it easier for consumers to valorise their
flexibility, for example by responding to price signals or matching their consumption
with their home production (e.g. from photo-voltaic panels on their roofs).
The Commission also proposes to
accelerate the development and adoption of a
new network code dedicated to demand response. Through greater empowerment
of consumers, it is also important to promote collective and individual self-consumption
schemes as stressed in the EU Solar Strategy to increase the generation of solar
power in the EU in the coming years.
Main messages
The EU budget and NextGenerationEU, notably the
Recovery and Resilience
Facility, will help speeding up the recovery in Europe while reinforcing our commitment
and steering investments in support of socially just/fair, green and digital transitions,
leaving no one behind. Considering high investment needs and long paybacks periods
for new technologies, we have launched a combination of packages (e.g. Horizon
Europe), programmes (e.g. Digital Europe Programme), funds (e.g. Climate Innovation
Fund), grants (European Innovation Council grants) to increase EU financial support on
innovation-related projects covering from the technological research to the deployment
of new technologies.
However for the green and digital transitions, annual investment needs until 2030 for
the entire EU economy are estimated to be
EUR 650 billion per year. While the EU
and the Member States help in a number of ways, notably in the development of new
technologies but also with respect to investments themselves,
the business
community itself will be responsible for the greater part of investments.
The Commission is
co-creating with industry, Member States, stakeholders at local
and regional level,
transition pathways for industrial ecosystems, where
together we
identify the investment needs, technology needs, as well as skills and regulatory
needs in order to bring about the green and digital transitions. For example, for
some of our problems we need to develop new technology solutions that are quickly
deployable and scalable. For others, we need to accelerate technology maturity and
scalability.
Topics for discussion
18/22
BusinessEurope CEO Dialogue
Brussels, 10 November 2022
The business community can contribute to the green and digital transitions by
taking
part in these technological initiatives and by making the necessary
investments. Businesses will contribute to and profit from the newly available technologies and will
be able to realise
process and product innovations.
The green and digital transitions are accompanied by a
drive for greater resilience:
this includes a reduced vulnerability in our supply chains. The business community can
contribute to this by
seeking suppliers from different sources as well as better
recycling and keeping stocks of
critical supplies.
Main messages
We fully support the objective behind the proposal of the German authorities to
create a “European alliance for transformation technologies”. That objective, namely, to
significantly increase the production capacities of green energy technologies within the
EU, is at the heart of our political mandate.
However,
we need further work to flesh out the best methods for achieving it. Our
policy toolbox has to be broad, including industrial alliances, but also regulatory
measures (permitting; setting ambitious product requirements, notably as part of
Ecodesign), trade-defence tools, financing (IPCEIs, EU and national research funding),
support for upskilling, standardisation or public procurement.
We propose to discuss the proposal of the German authorities through existing fora
(e.g. as part of the High Level Group on Growth and Competitiveness or the Industrial
Forum).
Topics for discussion
19/22