Economics

Eurogas rejects EU framework agreement for a just energy transition: Climate targets at risk

The withdrawal of the gas industry from the EU framework agreement for a just energy transition complicates the achievement of climate goals and jeopardizes job security in the sector.

Eulerpool News Oct 28, 2024, 12:12 PM

The European gas industry rejects the Just Transition European Framework Agreement, a setback for the EU's climate protection plans. The agreement, supported by the European Commission, was intended to secure thousands of jobs through retraining and support measures and facilitate the transition to clean energy.

In the summer, negotiations between the industry association Eurogas and the unions EPSU and IndustriALL Europe broke down after five rounds of discussions. Eurogas, which has over 100 members like Shell, TotalEnergies, and Equinor, stated that the legal implications of the framework agreement were unacceptable for many of its members.

The framework agreement would have represented the first legally binding agreement of its kind in Europe, specifically focusing on the decarbonization of the energy system. Eurogas pointed out that involvement in the competing company Asos posed an additional challenge, as both companies operate in similar markets.

The unions criticize the withdrawal as a missed opportunity to develop a tailored and sector-specific solution for the challenges of transformation in the gas industry. Jan Willem Goudriaan, General Secretary of EPSU, described Eurogas's decision as a "loss for workers in the gas sector.

Despite the failure, Eurogas emphasized that the company is still seeking joint solutions. "We are ready to explore alternative paths, such as a Memorandum of Understanding, to establish best practices and enable a productive ongoing discussion," stated an industry association declaration.

The European Commission regrets the failure of the negotiations and will continue to support the joint activities of the social partners in the gas industry. Ursula von der Leyen, President of the European Commission, announced that she will present a "Roadmap for Quality Jobs" during her five-year mandate, promoting fair wages, good working conditions, training, and fair job transitions.

With the withdrawal of the gas industry from the framework agreement, EU climate targets are under pressure due to the lack of necessary support for a just energy transition and the threat to job security in the sector.

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