Vulcan View: The latest EU developments April 29 – May 3

Tensions rise between UK and Ireland over immigration

Attempts to handle the unprecedented levels of immigration have this week prompted diplomatic tensions between Ireland and the UK. Looming general elections on either side of the Irish Sea means that there has been considerable political jockeying on the issue, which perception polling indicates will be top of mind for voters.

Responding to a line of questioning from Clare Independent TD – and MEP candidate for Ireland South ­– Michael McNamara, Minister for Justice Helen McEntee claimed that 80 per cent of those applying for asylum in Ireland were entering through the land Border with Northern Ireland. This suggestion was criticised by human rights organisations, opposition politicians in Ireland and the UK government. While McEntee has adamantly stood by this figure, Tánaiste and Minister for Foreign Affairs Micheál Martin stated that it is not based on data, evidence or statistics.

Meanwhile, UK Prime Minister Rishi Sunak and his Conservative party have been seeking to reap the benefits of the controversy. He insisted that the influx of asylum seekers into Ireland is evidence that his Rwanda policy is working. While it is a near certainty that the Conservatives will be shunted from office following the next general election, Sinn Féin leader Mary Lou McDonald was undoubtedly correct in her assertion that being afforded the opportunity to display its toughness on migration policy is a “gift to the Tories”. It is well documented that concern about immigration was one of the main drivers of the Brexit campaign’s success. Despite the Conservatives consistently trailing Labour by 20 per cent in opinion polls, a majority of the British public tends to be supportive of a harder line on immigration.

Channelling concerns around immigration for political benefit is not unique to the UK, of course. Successive opinion polls have shown that this will be the predominant issue for voters in Ireland in the upcoming elections, ahead, even, of housing. Despite being relatively late entrants into the field, Ciaran Mullooly and Niall Boylan – standing for Independent Ireland in Midlands-North-West and Dublin respectively – have both been gathering momentum as a result of rising tensions over immigration.

In an attempt to combat this, the Irish government – and Fine Gael in particular – has sought to recalibrate its stance. Taoiseach Simon Harris said Ireland will not “provide a loophole” for any other country’s migration challenges. Emergency legislative proposals were brought to Cabinet in Ireland this week. These are targeted at stemming the tide of illegal immigration into Ireland from across the Irish Sea. The Irish government says that this will allow an “operational agreement” between Ireland and the UK on the return of asylum seekers to come into force, enabling Ireland to send asylum seekers who come over the border back to the UK. However, Sunak has maintained that UK authorities will not be accepting the return of asylum seekers. This impasse is likely to persist for the short term at least, affording opposition parties ample opportunity to continue to criticise the government on immigration.

Commission allocates €720m to seven renewable hydrogen projects

In a significant move towards fostering sustainable energy practices, the European Commission has allocated nearly €720 million to seven groundbreaking renewable hydrogen projects across Europe. These projects, selected through the inaugural competitive bidding process under the European Hydrogen Bank, mark a pivotal step in the continent’s transition towards cleaner fuels and the decarbonisation of key industries.

The funds for this landmark auction stem from the revenues generated by the EU Emissions Trading System, reflecting a commitment to leveraging economic mechanisms to drive environmental progress. Through the competitive bidding process, the winning projects will receive subsidies aimed at bridging the price disparity between their renewable hydrogen production costs and the market price, which is currently influenced by non-renewable sources.

Renewable hydrogen holds immense potential as a clean energy source and is poised to revolutionize sectors such as steel, chemicals, maritime transport, and fertilizers. By supporting the production of renewable hydrogen within Europe, the European Hydrogen Bank seeks to catalyze the widespread adoption of cleaner fuels and significantly reduce CO2 emissions.

The seven selected projects emerged victorious from a fiercely contested auction that attracted a total of 132 bids. Together, these projects aim to produce 1.58 million tonnes of renewable hydrogen over the next decade, resulting in a substantial reduction of over 10 million tonnes of CO2 emissions. Spanning four European countries, the winning bids ranged from €0.37 to €0.48 per kilogram of renewable hydrogen produced, meeting stringent qualification criteria.

Additionally, Germany has made €350 million in national funding available through the innovative “Auctions-as-a-service” mechanism. This funding will support projects in Germany that did not qualify for EU-level support but meet eligibility criteria, further enhancing the reach and impact of renewable hydrogen initiatives.

Moving forward, the selected projects will embark on the process of finalizing grant agreements with the European Climate, Infrastructure, and Environment Executive Agency (CINEA), with agreements expected to be signed by November 2024. These projects are required to commence renewable hydrogen production within five years of signing the grant agreement and will receive fixed premium subsidies for up to a decade.

Looking ahead, the Commission plans to launch a second European Hydrogen Bank auction later this year, building upon insights gained from the pilot auction and engaging stakeholders for continued collaboration and innovation.

The European Hydrogen Bank represents a cornerstone of the EU’s commitment to fostering sustainable innovation and driving the transition towards a carbon-neutral future. With ambitious targets and robust support mechanisms in place, Europe is poised to lead the global charge towards renewable energy adoption and environmental stewardship.

EU-Japan Digital Partnership Council discusses digital transformation

On Tuesday, the European Union and Japan held their second Digital Partnership Council in Brussels. This Council was co-chaired by Thierry Breton, Commissioner for the Internal Market, Japanese Minister for Digital Transformation, Taro Kono, Minister of Internal Affairs and Communications, Takeaki Matsumoto, and Parliamentary Vice-Minister of Economy, Trade and Industry, Taku Ishii.

During the meeting, the EU and Japan reasserted the significance of their strategic partnership in promoting shared values and a plan for digital transformation that prioritises people and fundamental rights. The progress since the first Digital Partnership Council in 2023 was discussed, with a new list of deliverables to further cooperate on digital technologies and Artificial Intelligence (AI) then agreed on.

The key outcomes of the meeting include a Memorandum of Cooperation on digital identities and trust services being signed by both Japan and the EU. This aims to build a shared understanding of digital identity initiatives between the two countries, benefiting e-commerce and business opportunities. It aims to facilitate data-free flow with trust through Cooperation. The EU and Japan have also established a team of experts to develop a semiconductor research programmeto implement a Memorandum of Cooperation signed in July 2023.

The EU and Japan are also set to continue their joint work on high performance computing and will consider topics for joint projects in quantum research. Exploring cooperation on cybersecurity, 6G technologies and a shared vision for open and resilient networks were also discussed.

In terms of AI, the duo expect to enhance cooperation between the EU AI Office and Japan’s AI Safety Institute, while continuing to support the G7 Hiroshima AI Process and Code of Conduct, to eventually shape a trustworthy AI global governance. Japanese companies have also been encouraged to partake in the AI Pact launched by the European Commission.

The importance of deploying secure and resilient submarine cable infrastructures for secure, resilient, and sustainable connectivity was also on the agenda. Both parties will continue cooperation on developing direct connectivity links between Europe and Japan for more commercial opportunities, oceanographic research and cross-border data flows.

The second Digital Partnership Council between the EU and Japan showcases their strong commitment to collaborative digital innovation. Through agreements covering digital identity, AI cooperation, and infrastructure development, both parties reaffirmed their shared values and strategic vision for a secure, interconnected digital future. This meeting has both strengthened bilateral ties and set the stage for continued progress and cooperation in key areas.

For more information, please contact the Vulcan team here.

Compliments of Vulcan Consulting – a member of the EACCNY.