The EU is negotiating trade deals with Mercosur (Argentina, Brazil, Paraguay and Uruguay), Indonesia, and soon Malaysia, These trade deals represent a risk for the EU’s sustainable transport plans. All mentioned countries are producers and exporters of crop-based biofuels, especially from palm and soybean oil that have higher overall emissions than fossil diesel. All ongoing negotiations include chapters on energy and raw materials.
Countries around the world have reached a critical moment in the fight against climate change. Last year, hundreds of thousands of people marched in the streets demanding climate action, more than 190 countries reached a climate agreement in Paris, and renewable energy became more affordable and accessible to communities across the globe. Meanwhile, in sharp contradiction to that, countries negotiated new trade deals that would empower fossil fuel corporations to undermine the exact climate and conservation policies that are needed to tackle the climate crisis.
The Transatlantic Trade and Investment Partnership (TTIP) is a proposed free-trade agreement (FTA) between the European Union (EU) and the United States (US) that, if completed, would be the largest bilateral FTA in the world, and transform transatlantic commerce. Trade volumes between the EU and US are very high, energy remains an important exception, largely due to the US ban or limit on crude oil and liquefied natural gas (LNG) exports. Unsurprisingly the focus of EU negotiators is to end these limitations, but if the hope of cheap energy is one side of the coin, there is another: cheaper fossil energy means higher carbon emissions from increased consumption while crowding out renewable sources, all of which runs counter to the EU’s ‘40/27/27’ climate and energy targets for 2030.
The EU and the US are currently negotiating the Transatlantic Trade and Investment Partnership (TTIP) free-trade agreement, which would be the world’s largest. Recently the pressure on the EU to weaken the Fuel Quality Directive has increased notably and oil companies and refiners have found in/with TTIP a new lobby vehicle to attack the FQD. Find out more in this briefing.