New Sustainability Regulations and Implications for Europe (As outlined in European Commission Work Programme)

Posted On Jun, 01, 2023

Overview

The European Commission Work Programme (CWP) is an annual document that outlines the Commission's priorities and initiatives for the upcoming year. The document sets out the actions and legislative proposals which the Commission plans to take for achieving its futuristic developmental objectives and prioritize EU's policies and programs for the year. The CWP is based on the political guidelines established by the President of the European Commission in consultation with the other Commissioners. It considers the EU's strategic agenda, which sets out the long-term priorities for the Union, as well as the legislative and non-legislative initiatives that have already been adopted. The Commission Work Programme 2023 (CWP 23) is the latest released document that includes Commission’s legislative and non-legislative goals for 2023.

Implications of CWP

Policy, legislative, budget, and political implications have a significant impact on the sustainability of the European Union (EU) and its member states in a number of ways.

• Policy priorities: The CWP sets out the policy priorities for the year ahead, giving an indication of where the Commission will focus its efforts. This can help stakeholders, including EU member states, businesses, and civil society, to understand where the EU is heading and prepare accordingly.

• Legislative proposals: The CWP includes legislative proposals for the year ahead, which can have a significant impact on businesses and citizens across the EU. These proposals can result in new regulations, directives, and decisions that affect a wide range of areas, from environmental protection to consumer rights which may have a positive environmental and social impact.

• Budget implications: Budgetary implications helps the commission to identify its priorities for spending. This can have an impact on the EU's overall budget and on the allocation of funds to specific policy areas including environmental and social spending.

• Political implications: The CWP can also have political implications, as it can signal the Commission's priorities and influence the broader political debate in the EU. It can also affect the balance of power between the EU institutions and between the member states.

• CWP 23 centers around the Commission’s six priorities which were set out for 2019-2024 including the European Green Deal, a Europe fit for the digital age, an economy that works for people, promoting our European way of life, a stronger Europe, and a new push for European democracy.

CWP 23 on European Green Deal

According to CWP 2023, the commission has decided to propose 14 legislative and non-legislative initiatives within European Green Deal, focused on numerous environmental issues including waste management, sustainable food systems, and sustainable transport. The new regulations will also address the issue of high electricity prices by proposing a thorough reform for the EU electricity market. The initiative aims at building resilience with future price volatility, ensuring affordability, and building capacity to anticipate the possible industrial transformations necessary for largely electrified continents and decarbonized economy. The commission aims at scaling up the EU green hydrogen economy by deploying more renewable energy sources based on the initial investment of USD 33.1 Billion (EUR 3 billion) in the hydrogen market. Additionally, the new regulations will take action to reduce waste and its environmental impacts along with overhauling the EU’s animal welfare laws.

---

Let our sustainability consultants help you with your ESG goals. Share your queries and request a call back.

---

Europe fit for the Digital Age

"Europe fit for the digital age" is a strategic initiative of the European Union that aims to ensure that Europe can fully benefit from digital transformation, while at the same time addressing its challenges and risks. The initiative was launched by the European Commission in 2019, and it covers a wide range of areas, from artificial intelligence to cybersecurity, digital skills to e-commerce. The new regulations will focus on 14 legislative and non-legislative initiatives focused on the diversification of the EU’s digital economy and its contribution towards green transition. The regulations will also ensure safety from piracy of live content and drive the compulsory licensing of essential patents. These initiatives are expected to ensure a stable regulatory business environment in the economy. To realize the full potential of digital transformation coupled with green transition, CPW 23 also aims at upskilling and reskilling the European workforce.

Economy that works for people

‘An economy that works for people’ is a concept that emphasizes the importance of economic policies and systems that prioritize the well-being of people and communities, rather than just economic growth or profits. It acknowledges that economic success is not an end, but rather a means to achieving broader social goals, such as improving living standards, reducing inequality, and promoting sustainability. The Commission aims at proposing 14 legislative and non-legislative initiatives for the next phase of the EU regulations. Through CPW 23 Commission aims at revisiting the foreign direct investment regulations to improve their functioning. The new regulations will smoothen the cross-border activities for associations and non-profit organizations. Under this priority, the Commission also plans to ensure funds of USD 791.6 Billion (Euros 72 billion) over the 2025-2032 period to strengthen the functioning of the Social Climate Fund which was established in 2021. Additionally, the Commission aims at digitalizing social security systems and social safety nets to enable labor mobility. This will also aid the ongoing project of the European Social Security Pass.

Stronger Europe in the World

Stronger Europe in the World’ is a strategic initiative of the European Union (EU) that aims to enhance Europe's global influence and promote its values and interests in the international arena. The initiative was launched by the European Commission in 2019, and it covers a wide range of areas, from trade and investment to foreign policy and security. Under this priority, the Commission aims at proposing four legislative and non-legislative initiatives in the view of ongoing Russian Invasion of Ukraine. Through CPW 23, the Commission aims at updating the EU’s sanction toolbox to include corruption. The Commission also plans to propose two joint communications to strengthen the EU space strategy for security and defense and updating the EU maritime security strategy.

---

Check out Astra's portfolio of Sector-Wise ESG Thematic Reports covering 100+ industries

---

Promoting our European Way of Life

The European Way of Life is a concept that reflects the values and principles that are at the heart of the European Union. These values include respect for human dignity, freedom, democracy, equality, the rule of law, and human rights. The EU aims to promote these values not only within its member states but also in the world at large. To further this concept, the Commission will propose nine legislative and non-legislative initiatives focused on health, child sexual abuse, migration, and asylum. The initiatives for health should be precisely focused on recommendations on vaccine-preventable cancers, revision of the 2009 Council recommendation on a smoke-free environment, and a comprehensive approach to mental health emerging in the context with Covid-19 pandemic. The Commission also aims to combat child sexual abuse by revising the EU strategy for a more effective fight against child sexual abuse which was adopted in 2020. It will directly impact the sexual exploitation of children and child pornography. Through CPW 23, the Commission also aims at recognizing the qualifications of the migrated population with the objective of attracting the right skills for diversifying the EU skillset for competing globally and dealing with skill shortages in the EU. Additionally, skill development will also focus on developing cybersecurity skill academy to defend the emerging cybercrime.

New Push for European Democracy

The concept of European democracy refers to the democratic principles and values that are promoted and upheld by the European Union (EU) and its member states. Recently, there has been a renewed push for European democracy, with a focus on strengthening democratic institutions and processes within the EU. Through CPW 23, the EU aims at proposing four legislative and non-legislative initiatives focused on protecting the EU demographic sphere from foreign influence. The proposed initiatives will also focus on revisiting the EU legislative framework for fighting corruption which will deepen the actions under the ongoing European Democracy Action Plan. In line with this concept, the Commission also proposes a common disability card that will ensure the recognition of disability mutually for all EU members.

The European Commission's Work Plan will have significant implications for Environmental, Social, and Governance (ESG) issues within the European Union (EU). CPW 23 will influence policy and regulatory frameworks related to sustainability, responsible investing, and corporate governance, among others.CPW 23 will also impact the social dimension of ESG issues as the Commission has prioritized initiatives aimed at promoting social inclusion, protecting workers' rights, and addressing social inequalities. This includes measures to ensure that companies respect human rights and labor standards for migratory populations, workforce with disabilities, and protection for vulnerable groups.

Summary

The CWP of the European Union aims at promoting sustainable communities that are free of carbon footprint, and digitally and socially inclusive economies. These objectives and initiatives of the CWP help in creating a stronger foothold for the European Union in global political and economic scenarios.