Corporate News
EU Commission unveils European Green Deal
In this issue, Leaseurope provides an overview of the European Commission's recently unveiled "European Green Deal", as well as a brief evaluation of the EBA's risk reduction measures roadmap.
Our new regular update provides members with an insight into the latest leasing and car rental industry news, policy developments, and upcoming events in an easily digestible format. It brings together up to date information on developments that will impact the leasing and car rental industry in a single place, and keeps members updated on the work of Leaseurope’s advocacy team.
In this issue, we provide an overview of the European Commission's recently unveiled "European Green Deal", as well as a brief evaluation of the EBA's risk reduction measures roadmap. We also present some of the key takeaways from recent events in Brussels on sustainability and the use of data, and announce the dates for the next Leaseurope and Eurofinas Annual Convention.
As this is the last issue for 2019, the Leaseurope Secretariat would like to take this opportunity to wish you a very happy holiday season, and all the best for 2020.
EU UPDATES & INDUSTRY TRENDS
COMMISSION ANNOUNCES DETAILS ON THE "EUROPEAN GREEN DEAL"
The European Commission announced its vision for a climate neutral EU by 2050 by presenting the “The European Green Deal”, which includes a Road Map with 50 actions for 2050, as well as the intention to mandate a 55% reduction target of greenhouse gas emissions by 2030. Besides achieving a climate neutral EU, the Commission reiterated its commitment for a circular economy, in which the leasing and asset finance industry can play a key role as an enabler of the transition. In relation to this, a new circular economy action plan is due to be delivered according to which “new business models based on renting goods and services will help to shift consumption patterns away from single or limited use products”. The Commission will also present a renewed sustainable finance strategy in the third quarter of 2020, and have stated that "the private sector will be key to financing the green transition". In the context of transport, the Commission will propose to revise by June 2021 the legislation on CO2 emission performance standards for cars and vans, propose a new Eurovignette Directive, and made a strong statement about considering applying European emissions trading (the current European Trading Scheme which sets a price on carbon emissions by industry sectors) to road transport, which might be heavily affected. You can find the Commission's communication and Roadmap here and here.
EBA ISSUES RISK REDUCTION MEASURES PACKAGE
The European Banking Authority (EBA) has published a set of roadmaps outlining its approach and prioritisation for delivering the mandates stemming from the Risk Reduction Measures Package adopted by the Council of the EU and the European Parliament on 20 May 2019. These mandates are primarily focused in the areas of governance and remuneration, large exposures, resolution, and reporting and disclosure. The Risk Reduction Package allocates to the EBA more than 100 new mandates under the revised Capital Requirements Directive (CRD V), Capital Requirements Regulation (CRR II), Bank Recovery and Resolution Directive (BRRD II). Most of the mandates aim at completing and updating the Single Rulebook as well at monitoring regulatory practices within the Single Market to ensure the effective and consistent implementation of such rules.
OPPORTUNITIES AND CHALLENGES IN DATA SOVEREIGNTY
Leaseurope attended an event on “Data Sovereignty”: Opportunities and Challenges”, where panelists discussed key issues related to the ownership, use and access to data, as well as the implications of increasing use of AI. The example of car manufacturers “hoarding” data was used by the Global Head of AI and Data Science at the Tieto Corporation to highlight the problems associated with the lack of access to data for service providers. MEP Miapetra Kumpula-Natri also highlighted that large companies refusing to share data were potentially violating competition rules and felt data should be shared unless there is a good reason for it not to be. The Head of the data business unit at the Finnish Ministry of Transport and Communication (which currently holds the Council presidency) discussed the set of five principles for the data economy recently published, which includes “access” and “share” as key principles. Finally, on the increasing use of AI, panelists highlighted the need for a “human centric” approach to AI, and that consumers had to have adequate recourse in situations where unfair or inequitable outcomes were reached as a result of an algorithm. You can find our more detailed summary of the event here.
ESBG CONFERENCE ON SUSTAINABLE FINANCE
Leaseurope attended a conference held by the European Savings Banks Group (ESBG) on sustainable finance, where panels discussed the future of the EU supervisory architecture (focusing heavily on the completion of Basel III), sustainable finance, and future of payments in the context of “European sovereignty” and instant payments. On the revision of the Basel III framework, the Commission highlighted the need to transpose and implement Basel III “faithfully and in good time”, and supported the approach put forward by the EBA. A second panel discussed how retail banks can contribute to encouraging sustainability in Europe in view of the goal of having 50% of all EIB lending to be geared towards sustainable projects by 2025, double the current 25%. Equipment financing was mentioned as an enabler of the transition to a more sustainable economy. You can find our more detailed conference summary here.
LEASEUROPE ACTIVITIES
SAVE THE DATE: LEASEUROPE & EUROFINAS ANNUAL CONVENTION 2020
The next Annual Convention - held jointly by Leaseurope and Eurofinas - will take place on 1 and 2 October 2020, in Cascais Portugal. As in previous years, the event will bring together delegates from the leasing and consumer credit industries for a two-day programme with first class speakers and compelling panels and debates. More information will be shared as it becomes available on the Annual Convention website.
LEASEUROPE ISSUES "MANIFESTO FOR FAIR DIGITALISATION OPPORTUNITIES"
Last month, Leaseurope together with AFCAR published an updated ‘Manifesto for Fair digitalisation opportunities" building on the previous Manifesto from 2018. It reaffirms the call for action by the European Commission to present a legislative proposal by 2020 to establish a genuine digital level-playing field through remote direct access to in-vehicle data and functions in real-time. This would ensure a modern approach to the European digital economy that is in line with the institutions’ ambitious goals to foster innovation, competition and consumer choice. You can access the Manifesto here.
Last month, Leaseurope together with AFCAR published an updated ‘Manifesto for Fair digitalisation opportunities" building on the previous Manifesto from 2018. It reaffirms the call for action by the European Commission to present a legislative proposal by 2020 to establish a genuine digital level-playing field through remote direct access to in-vehicle data and functions in real-time. This would ensure a modern approach to the European digital economy that is in line with the institutions’ ambitious goals to foster innovation, competition and consumer choice. You can access the Manifesto here.
NEW LEGAL AFFAIRS COMMITTEE CHAIR
Christian Brandt, Managing Director of the Danish Finance and Leasing Association will be the new Legal Affairs Committee (LAC) Chair, having been formally approved by the Board on 5 December 2019. Christian has been acting as interim Chair since September this year, and has previously been the Eurofinas Legal and Policy Committee (LPC) Chair. The next LAC meeting will take place on 29 January. Should you be interested in joining the committee, please contact the Leaseurope Secretariat.
Christian Brandt, Managing Director of the Danish Finance and Leasing Association will be the new Legal Affairs Committee (LAC) Chair, having been formally approved by the Board on 5 December 2019. Christian has been acting as interim Chair since September this year, and has previously been the Eurofinas Legal and Policy Committee (LPC) Chair. The next LAC meeting will take place on 29 January. Should you be interested in joining the committee, please contact the Leaseurope Secretariat.
UPCOMING EVENTS
WEBINAR: CONNECTED CARS - REGULATION IN A NUTSHELL
A webinar on the regulatory environment for connected cars will be taking place on 23 January (11.00 CET). Topics to be discussed include technology standards for connectivity, privacy and data protection, and access to car data by third parties. You can find out more information and register here.
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