Policy & Regulation

The EU's AI Act introduces a risk-based AI regulation system, banning high-risk practices and enforcing strict requirements for market placement. It includes obligations for both in-EU and foreign entities affecting EU citizens and establishes a governance framework for consistent application, promoting ethical and trustworthy AI development through detailed standards and best practice codes. Significant penalties ensure compliance, while tailored provisions support SME innovation, all impacting broad sectors, including energy, where AI-driven efficiencies require adherence to these new regulations.

The "From Farm to Fork" strategy under the European Green Deal sets ambitious targets like reducing pesticides, increasing organic farming, and halving food waste by 2030. It emphasizes environmental health and economic benefits, advocating technological innovation and stronger global partnerships for sustainable food systems.

The EU's AI Act introduces a risk-based framework for AI, mandating requirements for high-risk systems and enforcing compliance. It addresses AI's potential in energy optimization, while emphasizing fundamental rights, safety, and a human-centric approach, with the IEA highlighting AI's role in achieving sustainability goals.

Directive (EU) 2023/1791 mandates a minimum 11.7% energy reduction by 2030, with specific targets for sectors and Member States. Emphasizing public sector efficiency, building renovations, and consumer empowerment, it sets a framework for sustainable energy use and addresses energy poverty, providing measures for enforcement and financing.

SMEs, at 98.9% of European businesses, collectively account for 13% of energy demand, presenting significant energy efficiency potential. Barriers include financial constraints and lack of energy management. Supportive policies and tailored programs can incentivize efficiency improvements, leveraging SMEs' key role in reaching the EU's energy goals.

The Rassemblement National's 2024 program prioritizes nationalistic policies, with an emphasis on nuclear power, potentially hindering renewable energy development. The program's focus on traditional energy sources may lead to regulatory changes, affecting investor confidence and France's alignment with EU goals. This could result in tensions with the EU, reduced funding, and a slowed energy transition.

EEIP's AI policy emphasizes transparency, ethical behavior, and data protection, aligning with EU guidelines to foster trust and drive responsible AI in the energy sector for sustainable, innovative solutions like CircularPSP and DMaaST, within regulatory compliance.

The European R&I Days highlighted the need for a comprehensive government approach involving research and innovation to achieve the European Green Deal’s decarbonization targets. Showcasing success stories, it emphasized collaboration for transforming energy-intensive industries and integrating R&I for a sustainable future.

The article examines the efficacy of decentralizing environmental taxes to address region-specific environmental issues, contrasting it with centralization that may cause fiscal competition and efficiency losses. It suggests harmonizing economic incentives with environmental protection to optimize the impact of environmental taxes on sustainability.