brexit > round up > energy sector
TRANSCRIPT
This report will collate all key activity from the last week in Westminster, Whitehall, the European Commission, European Parliament and leading stakeholders as it relates to the energy sector and Brexit.
TABLE OF CONTENT
EU: Brexit task force takes shape EU: Junker makes State of the Union speech EU: EP President says “no negotiation without notification” UK: Chairman of Global Warming Policy Foundation gives evidence to peers UK: Written answer on impact of Brexit on renewables sector UK: Opportunities for UK energy market raised in House of Commons UK: Chancellor holds round table with business UK: Scottish Government hold summit with energy sector UK: Government response to report on EU/UK environmental policy UK: MP blog on impact of Brexit on the environment UK: Speech: UK-India partnership is strong in the energy sector UK: International Trade secretary speech in Dubai EU: Brexit’s impact on EU budget EU: Leaders reflect on future of union EU: Central European countries threaten to veto Brexit deal Lookahead – September/October October Members Area by using:
EU: Brexit task force takes shape
On September 14, the European Commission confirmed its decision to set up a Task Force for the preparation and conduct of the Brexit negotiations under Article 50 of the Treaty of the European Union. Former French Commissioner Michel Barnier, appointed as the Commission’s Chief Negotiator on Brexit in July, will lead this Task Force which will be responsible for coordinating all strategic, operational, legal and financial issues related to the negotiations. In setting up the Task Force, the Commission also appointed Sabine Weyand, currently Deputy Director-General in the Commission's Trade Department (DG Trade), as Deputy Chief Negotiator. Commission President Jean-Claude Juncker said: “This new Task Force will be composed of the Commission's best and brightest. They will help Michel Barnier to conduct the negotiations with the United Kingdom effectively, benefiting from the deep knowledge and rich experience available across the whole Commission. Together, Michel and his team will live up to this new challenge and help us to develop a new partnership with the United Kingdom after it will have left the European Union.” Although little is known about what concrete preparations the Commission has undertaken, Barnier has said that he expects the talks with the UK to be “tough”. Speaking to the French newspaper Ouest France, he expressed the view that the outcome of the UK referendum was a result of the EU’s “ultra-liberal drift,” whereby its citizens “feel they are not listened to.” Europe must therefore “prove again its added value for citizens,” he claimed. Reports suggest that Barnier is planning to make a tour of EU capitals after he officially assumes his new role on October 1, in order to weigh up what Member States expect from the negotiations. In addition to the Commission Task Force, the Council of the EU has set up its own Task Force for the
negotiations with the UK, headed by Belgian diplomat Didier Seeuws. It is not yet clear, however, what
the balance of responsibilities between both teams will be.
EU: Brexit task force takes shape EU: Brexit task force takes shape it task force takes shape EU: Brexit task force takes shape
EU: Junker makes State of the Union speech
On September 14, Commission President Jean-Claude Juncker gave his annual State of the Union speech at the European Parliament in Strasbourg. His speech made only a passing reference to the issue of the UK’s pending withdrawal from the EU – he acknowledged the country’s decision to leave and hoped that the British Government would trigger Article 50 as soon as possible. The issue was touched upon in the following debate by Belgian liberal MEP Guy Verhofstadt, who was appointed on September 8 as the Parliament’s lead Brexit negotiator. The MEP argued that Brexit should be seen as an “opportunity” and that, while the British Government wants to make it a success for the UK, the EU also has a duty to make it a success for Europe. His comments came after being labelled a “fanatic” by British MEP Nigel Farage. Also during the debate, Italian MEP Gianni Pittella, President of the Parliament’s Socialists and Democrats
Group, expressed frustration with the delay in starting the Brexit negotiations, claiming that the British
Prime Minister was holding the EU hostage. British MEP Syed Kamall, who leads the Parliament’s
Conservative and Reformists Group, said that the result of the UK referendum should serve as a warning
to other Member States about citizens’ growing discontent with European integration. Their legitimate
concerns should not be dismissed, he warned.
Following his address at the European Parliament, President Juncker also spoke about Brexit during his
speech at the University of Zürich on September 19, marking the 70th anniversary of Winston Churchill’s
‘Europe speech’. He said: “We are now preparing for negotiations with our British friends, when our
British friends get around to asking to leave. It is a source of considerable surprise to us that no such
request has yet reached Brussels.” Regardless, he stressed that the EU is “not at war” with the UK and
hoped to reach a “fair deal” with the country.
EU: Junker makes State of the Union speech Members Area by using:
EU: EP President says “no negotiation without notification”
On September 22, the European Parliament President Martin Schulz met with UK Prime Minister Theresa May and London Mayor Sadiq Khan to discuss the future of UK-EU relations. Also, today – September 23 – he will hold a meeting with the leader of the UK Labour Party Jeremy Corbyn and deliver a speech at the London School of Economics on ‘The EU and Britain: parting ways but working together’. Speaking to the Parliament Magazine website ahead of his visit, Schulz explained that the purpose of the
visit was to “get a pulse from the British authorities on the state of affairs on Brexit and EU-UK relations”
and that he would “reiterate the principle of no negotiation without notification.” Moreover, he
expressed the hope that Article 50 would be triggered as early as possible in order to “limit uncertainty.”
UK: Speech by Prime Minister to the UN General Assembly
This week, the Prime Minister declared the UK's commitment as a confident and dependable partner in her first address to the UN General Assembly. Theresa May said the UK would not "walk away from our partners in the world" and warned that people felt left behind by the "increasing pace of globalisation". May also held a series of face-to-face meetings with other leaders and take part in a summit on refugees
called by US president Barack Obama.
EU: Junker makes State of the Union speech Members Area by using:
UK: Chairman of Global Warming Policy Foundation gives evidence to peers
Lord Lawson has given evidence to the Economic Affairs Committee for its inquiry into 'The Economics of
UK Energy Policy '. Lord Lawson appears in his role as Chairman of the Global Warming Policy Foundation
and gave evidence alongside Lord Turner of Ecchinswell, Chairman of the Institute for New Economic
Thinking's Governing. Questions asked included “Does the UK Government have a clear energy strategy
at the moment?” and “what impact will Brexit have on UK energy policy”.
The Committee is exploring the present mix of policy interventions and subsidies in the energy market.
The core question which it is seeking to answer is: "What are the failures, if any, in the energy market
and what measures are needed to correct them?". The deadline for written evidence is September 30
2016.
UK: Written answer on impact of Brexit on renewables sector
Members Area by using: Former leader of the SDLP and Northern Ireland MP Margaret Ritchie asked the Department for
Business, Energy and Industrial Strategy “what assessment he has made of the effect of the UK leaving
the EU on the renewables industry in (a) Northern Ireland and (b) the rest of the UK.”
She was issued a formal response this week with Parliamentary Under Secretary of State at the Department for Business, Energy and Industrial Strategy Jesse Norman replying: “We remain committed to making Britain the best place in Europe to own and grow a business. That
includes supporting those businesses that trade with the EU and the wider international markets, as well
as continuing to encourage record foreign direct investment which supports business and communities
up and down the country. “Through our industrial strategy we will continue to put power in the hands of
local communities to drive economic growth working in partnership with local business and civic leaders
– to deliver an economy that works for all.”
UK: Opportunities for UK energy market raised in House of Commons
The Department for Business, Energy and Industrial Strategy held oral questions in the House of Commons this week. During exchanges, Conservative MP Peter Aldous (Waveney) suggested Brexit provided the UK with an opportunity to be the global leader in such energy technologies as offshore wind, energy storage, and carbon capture and storage. He asked: “Can the Secretary of State confirm that the Government will reset energy policy so that the country can take full advantage of this great opportunity?” In response, Secretary of State Greg Clark replied: “My hon. Friend is right that one of the historic
strengths of the United Kingdom is in areas such as marine engineering and power engineering, which
are at the heart of the opportunities that exist around the world as many countries look to develop their
capacity in renewable energy. That provides a big opportunity, especially for his constituents.”
UK: Chancellor holds round table with business
The Chancellor Philip Hammond has this week met with British businesses from all over the country to listen to their views ahead of his first Autumn Statement. The roundtable events at the Treasury and Downing Street also included discussions around leaving the European Union, with the Chancellor urging businesses to make the most of the new opportunities that Brexit presents. Attendees at the meetings have come from a cross section of Britain's leading business groups including the CBI, FSB and BCC where companies like BMW, British Airways, Sainsbury's, TSB and Shell UK and Ireland have all been represented. The Chancellor also discussed boosting UK growth and productivity with senior executives from John Lewis, Rolls Royce, BAE Systems and CISCO in a dedicated roundtable. Media reports subsequently suggest many businesses are frustrated by the lack of a single point of
contact in government to which business could represent its views. There are also reports this week that
the UK prime minister’s official business advisory group is being dissolved with Downing Street saying
May wanted to engage with business “in a different way” from her predecessor David Cameron, who
used the group for set-piece consultations with bosses.
UK: Scottish Government hold summit with energy sector
The Scottish Government has held two summits this week where the impact of the UK’s decision to leave
the EU on the energy sector was discussed. Minister for Business, Innovation and Energy Paul
Wheelhouse met key sector stakeholders to hear more about the challenges presented by the EU
referendum vote, and ensure the Scottish Government is doing all it can to help.
Wheelhouse set out plans for the Scottish Government 's forthcoming Climate Change Plan and Energy
Strategy, canvassing industry opinion on the best joint way forward to navigate current uncertainty. A
second summit focused on the oil and gas sector will be held on Friday 7 October in Aberdeen.
UK: Government response to report on EU/UK environmental policy
Members Area by using: In April 2016, Environmental Audit Committee’s published its report on EU and UK Environmental Policy
following an inquiry. It concluded that the EU membership has been a crucial factor in shaping UK
environmental policy on air and water pollution, and biodiversity. The inquiry heard concerns that a UK
outside the EU would still have to follow some EU environmental legislation, but with significantly less
ability to influence how it is developed.
The UK Government has this week published a 2-page response to this report acknowledging that
following the referendum, the Government recognised that there would be a significant opportunity to
substantively rethink Their approach to how the UK conducts environmental policy making both
domestically and internationally.
UK: MP blog on impact of Brexit on the
environment
Daniel Zeichner, Labour MP for Cambridge, has this week written a blog for his party’s environmental
campaign group SERA, on how the legal status of much environmental legislation post-Brexit remains
complicated. During his comments, he called for a new Clean Air Act.
UK: Speech: UK-India partnership is strong in the energy sector
The UK Government has published speaking notes of a speech by British Deputy High Commissioner to Bengaluru, India, Dominic McAllister at a workshop on raising the voice of gas. He stated that the UK India partnership was strong particularly in the energy sector referencing the 2015 memorandum of understanding (MOU) which committed both countries “to deepening our existing energy relationship - and challenges us to go further”.
He added: “We have not been complacent. We are looking forward to the first India UK Energy summit
and thank you minister for your interest in this. We are also looking forward to a strong UK presence at
the petro tech event in December and to closer government to government and business to business
ties.”
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UK: International Trade secretary speech in Dubai
This week International Trade Secretary Liam Fox delivered a speech at Capital Club Dubai. He focused on
areas where UK's and UAE's economic ties could continue to be strengthened.
He stated the UK would now be “quicker, than we have been, at identifying big-ticket exporting
opportunities in high growth markets; we have already prioritised 31 across the Gulf, including here in
the UAE. This not only covers traditional industries such as oil and gas or defence and infrastructure, but
emerging areas like life sciences and creative.”
EU: Brexit’s impact on EU budget
On September 14, the European Commission presented several proposals to revise its seven-year budget (the Multiannual Financial Framework) to increase flexibility, provide additional funding, and simplify financial rules for beneficiaries. As for how the changes to the financial framework will be affected by the UK’s exit from the EU, Commission Vice-President Kristalina Georgieva maintained many EU officials’ non-speculative line, but noted that the UK’s ambition for its future relationship with the EU will have budgetary implications. For its part, the UK Treasury issued a statement in August offering some assurances for UK beneficiaries of EU funds, though critics say it falls short of providing real certainty. Agreements involving the Structural and Investment Funds and Horizon 2020 signed before the 2016 Autumn Statement will receive continued support from the UK government post-Brexit, according to Chancellor Philip Hammond. Upcoming Brexit negotiations, as well as EU budget negotiations, will have to wrestle with how the EU
adjusts to losing a large net contributor, but also the recipient of a large rebate, and how the UK will
supplant the financing provided by the EU.
Members Area by using:
EU: Leaders reflect on future of union
On September 16, the leaders of the 27 EU Member States – excluding the UK – met in Bratislava for an
informal summit to discuss their views concerning the future of the EU. In a press conference following
the summit, President of the European Council Donald Tusk stated that the future negotiations with the
UK were not the main topic of discussion and reiterated the Council’s position that no formal talks can
begin until the country triggers Article 50.
While stressing that the EU27 is well-prepared to start the negotiating process, he respected the fact that
the UK required more time to prepare its position. Robert Fico, Prime Minister of Slovakia, which
currently holds the six-month rotating Presidency of the Council of the EU, said that they wished to
maintain close relations with the UK, but the interests of the other Member States must be protected
during the negotiations and there can be no ‘cherry-picking’. Commission President Jean-Claude Juncker
insisted that the EU would be sticking to the position that access to the internal market has to go hand-in
-hand with respect for the internal market’s basic principles.
After the summit, the EU leaders also issued the Bratislava Declaration and Roadmap in which they
outline their vision for the future of the EU. They say: “Although one country has decided to leave, the
EU remains indispensable for the rest of us […] We are determined to make a success of the EU with 27
Member States, building on [its] joint history.” The objectives presented in the Roadmap focus on dealing
with challenges related to migration and security, as well as creating a better economic future for
Europe’s youth.
EU: Central European countries threaten to veto the Brexit deal
On September 17, the day following the informal summit of EU leaders in Bratislava, Slovakian Prime
Minister Robert Fico said that Slovakia, Hungary, Poland and the Czech Republic – known together as the
Visegrad Group or V4 – would block any deal with the UK that would restrict their citizens’ rights to live
or work in the country. In an interview with Reuters, the Prime Minister stated: “The V4 countries will be
uncompromising. Unless we feel a guarantee that these people [living and working in Britain] are equal,
we will veto any agreement between the EU and Britain.” On this point, he insisted that there would be
“no room for compromise.”
Lookahead—September/October
European Parliament September 29 – The European Parliament’s Committee on Constitutional Affairs (AFCO) is holding an exchange of views on the constitutional relationship of the United Kingdom with the European Union. European Commission October 1 - Michel Barnier, European Commission's chief negotiator for Brexit takes up his position House of Parliament Parliament will return on October 10 following the party conference recess. September 30 - Foreign Affairs Committee Brexit inquiry – written submissions received by this date will inform the Committee’s work in October. September 30 - European Scrutiny Committee Post-Referendum Consultation - written evidence deadline Stakeholders September 25 – Labour Party conference starts in Liverpool. Concludes Wednesday 28 September. September 26 – Friedrich-Ebert-Stiftung is organising the event EU Enlargement after BREXIT – Challenges and Chances for the Western Balkans in Brussels. September 28 – PubAffairs Bruxelles is organising the debate A lose-lose game? The ‘Brexit effect’ in the UK and the EU in Brussels. September 29 – Konrad-Adenauer-Stiftung and the Global Policy Institute are organising the event German and British Perspectives on Brexit in London. October 2 – Conservative Party Conference starts in Birmingham. Concludes Wednesday 5 October. October 4 – Priorities for UK National Security – RUSI event October 7 – Deadline for applications – Brexit academic conference in Parliament. Apply for a place here. October 8 – Brexit Britain: What went wrong and what next – LSE event
October 27 – The Federal Trust is organising the event Britain and the EU - Difficult Questions after the
EU Referendum in London.
