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Back to work: EU legislative proposals – 2020 outlook

As the summer recess is coming to an end, the European Commission will start preparing the EU legislative proposals that are still in the pipeline for 2020, according to the work program. As the second semester of the year will be a packed one, it is key to timely prepare input in order to have your priorities heard.

Following our blog on the EU initiatives that were open for feedback over summer, Dr2 Consultants now guides you through the main remaining proposals for 2020 in the transport, sustainability and digital sector. You can find these below in that particular order.

Transport up-to-speed with the new decade

Emerging developments such as the decarbonization of transport, digitalization and the global COVID-19 pandemic have stressed the need to review the Trans-European Transport Network (TEN-T) Regulation. The TEN-T policy aims to develop and implement a Europe-wide infrastructure network linking ports, highways, airports and railways. With the upcoming revision of this EU legislation, the European Commission aims to bring TEN-T up-to-speed with the ongoing green and digital transitions. The Commission is expected to put renewed emphasis on the strengthening of urban nodes, the update of infrastructure requirements, and the alignment of the TEN-T policy with the EU’s environmental policies.

The Commission is currently finalizing the evaluation of the TEN-T Regulation. The different modes of transport are still invited to contribute to dedicated case studies in the course of September. The European Parliament is currently preparing an own-initiative report on the TEN-T policy. The Transport & Tourism committee will discuss the draft report on 3 September. The Commission is expected to publish a roadmap and a public consultation later this year. A legislative proposal is foreseen for summer 2021.

In addition to the TEN-T, the Commission is expected to publish the EU’s Strategy on Sustainable and Smart Mobility. With this strategy, the Commission intends to adopt a comprehensive strategy to reduce transport-related greenhouse gas emissions by 90% by 2050, and to ensure the transport sector is fit for a clean, digital and modern economy. A public consultation has been opened in the summer and is open for feedback until 23 September.

Visit our Transport page.

Green energy and sustainable production

The energy-focused sibling of TEN-T will also be subject to a revision this year. The Trans-European Energy Network (TEN-E) Regulation aims to link European electricity, gas and oil infrastructure into a single network, consisting of nine corridors. TEN-E focus areas are smart grids, electric highways and the cross-border carbon dioxide network. This EU legislation is considered to be instrumental to realize the renewable energy objectives across the Union, for example in stimulating the hydrogen economy. The Commission will come up with a legislative proposal for a revised TEN-E regulation.

European Green Deal Impact Scan

In addition, several EU legislative proposals will be initiated that will have an impact on producers. Proposals that tackle packaging waste, deforestation and industrial emissions are currently in the pipeline. Striving towards a circular economy, the Commission will promote waste reduction by reviewing the Packaging Directive. This may include improved design standards and increased recycled content in packaging materials. Possibly, packaging design standards will also change as a result of the Deforestation Regulation, which could include labelling requirements and verification schemes to increase the transparency of supply chains. Finally, the Industrial Emissions Directive may require additional sectors, such as farms and extractive industries, to implement available sustainable production techniques. Public consultations on the three initiatives are upcoming this year, and the respective legislative proposals are scheduled for 2021.

Visit our Sustainability page.

Trustworthy AI and shared data spaces

Artificial Intelligence (AI) is increasingly affecting our society. Applications can bring about revolutionary changes in healthcare, governance, research, production and many other areas of our society. On the one hand, opportunities such as the precision of diagnosis, the prevention of car accidents and more efficient farming are promising. On the other hand, AI carries several potential risks, including racial, gender or other discriminatory biases, infringements of our privacy and reduced governance accountability.

Amidst global competition, the European Commission aims to distinguish the EU approach with its emphasis on European values. The EU strategy must embrace opportunities, while protecting citizens from potential harmful impacts. The European approach for trustworthy artificial intelligence will propose ethical requirements for AI, following the general strategy presented in the White Paper, stakeholder consultations and the draft guidelines presented by the High-Level Expert Group on AI in 2018. The initiative will be a review of the draft guidelines, on which stakeholders will be invited to deliver input through the upcoming roadmap.

Another aspect of the EU digital strategy is the regulation of the growing volume of data. Data can give valuable insights that drive innovation in areas such as medicine, mobility and policy-making. The creation of common European data spaces will allow citizens, businesses and organizations to access non-personalized data from different Member States, pooled across different key sectors. European privacy rules (GDPR) and competition law continue to be applied. Although the roadmap has already closed, input can be delivered through the upcoming public consultation. Adoption by the College of Commissioners is expected by the end of 2020.

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Next steps 

Commission proposals on the EU legislative initiatives mentioned above are expected by the end 2020, or in the course of 2021. As the Commission is preparing for a proposal-packed final quarter, it is key to reach out early to have your interests set on the agenda.

Want to know more about the upcoming initiatives, COVID-19, or other files that might affect your business? Please contact Dr2 Consultants to see what we can do for you.

EU consultation on Artificial Intelligence: seizing the business opportunity

With its new ‘Shaping Europe’s Digital Future’ Strategy, the European Data Strategy and a White Paper on Artificial Intelligence, all published on the same day (19 February 2020), the European Commission led by Ursula von der Leyen is fully committed to digitalizing our society. Zeroing in on the AI White Paper, it is clear that the Commission tries to find a delicate balance between building both an ecosystem of excellence that supports the development and uptake of AI and an ecosystem of trust where AI is also regulated and safe for everyone. The European Commission has already undertaken quite some work in defining its approach to AI and in consulting stakeholders. It is now proceeding with an official written consultation, seeking feedback on the White paper through a questionnaire.

While the European Commission has the prerogative to initiate the above ideas and strategies, the European Parliament has not stood still in the past couple of months and has proactively, and extensively, positioned itself and defined its priorities. Most notably, the Parliament’s Legal Affairs Committee (JURI) is working on multiple AI reports, focused on the technology’s ethical aspect, its civil liability regime and intellectual property rights for the development of AI technologies. Furthermore, also the Parliament’s Culture and Education Committee (CULT) is working on its own report on AI applications in education, culture and the audiovisual sector, and a EP Resolution has been drafted on automated decision-making processes and ensuring consumer protection and free movement of goods and services.

 

While the discussion around AI at EU level seemed to have stemmed exclusively from the new Commission’s strong will to act on this issue, since then feedbacks from civil society, NGOs, companies and others, have been highly requested to shape further the future framework.

The latest opportunity for stakeholders to contribute to the discussion is the Commission’s Consultation on the White Paper on Artificial Intelligence, closing on 14 June.

The questionnaire explores certain aspects of the White Paper, including specific actions to build an ecosystem of excellence, options for a regulatory framework for AI and further consultation on the question of safety and liability aspect of AI.

To zoom in on a specific and rather important aspect of the questionnaire for businesses, the Commission is seeking feedback on whether the introduction of new compulsory requirements should be limited to high-risk applications, and whether the current definition and criteria for this risk-based approach is the right way forward. New requirements and standards would regulate aspects such as training data, human oversight and so on. In addition, the European Commission is seeking feedback voluntary labelling for any other AI-powered services that could be qualified as “low-risk”. The intention and content of such voluntary labelling scheme is still fully open for discussion.

There are two key opportunities for businesses here through this process, that should not be overlooked:

First, this should be seen as the perfect opportunity to question, understand, assess and if necessary, improve companies’ practices when developing or using AI in their daily activities. The Commission and Expert Groups have developed various tools such as the White Paper, but also the  assessment list of the Ethics Guidelines for Trustworthy AI., that can guide this type of exercise. Do we allow for human oversight? Does the data we use could lead to biased decisions? Would we benefit for a voluntary label or other form of self-regulation? Those are some of the questions that companies operating in the EU could ask themselves to stay relevant in the market.

Second, share companies should share their experience with policymakers to ensure that a new EU legal framework does not hinder business activities or innovation beyond what is necessary to protect consumer and fundamental rights, and to ensure that any new legal framework does not create legal uncertainty or unnecessary red tape. Referring once again to the risk-based approached, the possible evolution of the qualification and criteria for “high-risk” use can have a significant impact on companies. Stakeholders have an opportunity to shape rules that could ensure the EU remains an open, competitive, and innovative market.

There have been certain voices calling for a reassessment of the Commission’s plans in relation to AI under the new circumstances created by the COVID19 outbreak, which could shed new light on the costs of not using AI-powered solutions. The Commission has however clearly insisted on the fact the questionnaire would be the perfect opportunity to reflect further on what a future regulation should look like to ensure that AI fulfill its promises for society.

Digital Ambitions in Flanders

The Flemish Government Agreement 2019-2024 was announced on Tuesday 1 October and was negotiated by N-VA, CD&V and Open Vld. Although the coalition agreement does not contain a separate chapter on digital topics, the new Flemish Government is committed to making innovation and digital transformation a priority in its policies. To achieve this, the agreement emphasizes that Flanders must raise to the top of the digital infrastructure. Moreover, the Flemish Government also wants to take the lead in experimenting with new digital applications and digital transformations in its services.

Lifelong learning

The agreement stresses the importance of digitalization to stimulate a culture of lifelong learning. Therefore, the new Flemish government wants to set up a Lifelong Learning Platform and aims to use smart data to proactively make people aware of career opportunities and threats on the labor market. In addition, embedded in the VDAB (Vlaamse Dienst voor Arbeidsbemiddeling en Beroepsopleiding, Flemish Office for Employment and Vocational Training) career platform, the Flemish government is developing a smart digital tool that will help Flemish people find their way in the private and public labor market. Citizens who do not have sufficient digital skills will be proactively tracked and supported to increase their self-reliance. However, already during the formative years in high school, the government wants to have an eye for digital innovations in the “classroom of the future” and for the corresponding IT applications. In addition, courses should be substantively up-to-date and respond to the reality of tomorrow, certainly also with regard to the necessary digital and transversal competences.

 

Artificial intelligence

Artificial intelligence will play an important role in the digitalization of Flanders. Therefore, the new Flemish Government is preparing an integrated plan for further digitalization of Flanders and the valorization of artificial intelligence. With this plan, the Flemish government wants to increase support for the policy programs and projects for Artificial Intelligence, Cyber Security, I-Learn and Mobilidata and ensure that these remain optimally tailored to the needs of Flemish companies and society as a whole. In addition, the government agreement states that the quality of life will also increase thanks to the efforts of AI. The Flemish AI policy plan fulfills the ambition to put Flanders on the world map in this strategic domain through research, training and practical applications in companies.

Digital security

The new Flemish government is also concerned about its digital security. Through the cyber-security policy plan, aimed at research, practical applications in companies and training, the coalition of N-VA, CD&V and Open Vld wants to develop in particular a resilient digital economy in Flanders. In this regard, also privacy is very important according to the government agreement. The government will, in accordance with international evolutions, develop standards for pooling, opening and exchanging data, with the utmost respect for user privacy. In addition, in the rapidly evolving media society where the impact of (social) media on society is enormous, the importance of media literacy and digital literacy should be increased to guard against fake news. Therefore, the Flemish government will continue to implement the media literacy policy together with the Knowledge Center Media Literacy so that they are able to pursue a coordinated policy throughout the media sector with other policy areas.

The ambition of Flanders is clear. The new government wants Flanders to be the world reference for a number of innovative technologies and sectors and to be a pioneer in digital entrepreneurship. Flanders must be the testing ground for companies and citizens who want to taste the digital applications of the future. The question remains, however, how these ambitions will be financed and how these priorities will be implemented concretely in order to give Flanders a leading (digital) position in the world.