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Middle East & Israel Breaking News » Business News » Business Features » Article

Israel and the EU: What's ahead?


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What does the European Commission intend to do in order to reduce the emission of greenhouse gases?

EU AMBASSADOR to Israel...

EU AMBASSADOR to Israel Ramiro Cibrián-Uzal.
Photo: Courtesy

Well, as you probably know, in March 2007, the EU's leaders set ambitious goals for the reduction of greenhouse gases, namely the unilateral reduction of greenhouse gases by at least 20 percent and to increase to 20% the share of renewable energies in energy consumption by 2020. Moreover, the EU promised to increase the emissions reduction to 30% by 2020 when a new global climate change agreement is reached that includes commensurate commitments by other major world partners.

In order to deliver on those commitments, the European Commission agreed at the end January on a far-reaching package of proposals. These measures will dramatically increase the use of renewable energy in each country and set legally enforceable targets for governments to achieve them. All major CO2 emitters will be given an incentive to develop clean production technologies through a thorough reform of the Emissions Trading System that will impose an EU-wide cap on emissions.

How can the EU and Israel join forces to that end?

The EU and Israel already fully share the same objective of reducing the emission of greenhouse gases. Both sides have ratified the Kyoto Protocol, and Israel benefits from the Clean Development Mechanism, a UN initiative that allows the transfer of clean technology to countries that don't have fixed reduction targets.

In the EU-Israel Action Plan, which is part of the European Neighborhood Policy, EU-Israel cooperation on the environment, including in the field of climate change, is mentioned as a priority. Part of this cooperation takes the form of professional seminars which allow Israeli professionals and government ministries to draw on the knowledge and experience of European counterparts and to prepare legislation that is more in line with international and EU best practice.

In the coming months, Israel will host two events relevant to the reduction of greenhouse gases: one on the Integrated Pollution Prevention and Control EU Directive, and the other on the Kyoto emissions trading mechanism. Of course, Israel is also a full member of EU's 7th Framework Program for Research and Technological Development, which has reduction of greenhouse gases emissions as one of its areas of activity.

How can Israeli companies and entrepreneurs take part in the European effort to replace fossil fuels?

One way is via the Eureka network for market-oriented R&D, where Israel has been a member since 2000. This allows Israeli companies to join counterparts in Europe to develop new products, including in the energy field, while benefiting from national funding. Israel has also recently joined Eurostars, a new public-private program financing research-intensive small- and medium-sized companies.

One of the priorities of the 7th RTD Framework Program is research into renewable energies. Israel is fully associated to the Framework Program, and Israeli industry participates in a large number of projects co-funded by the EC.

What do you think about the new electric car that is being pursued by two Israeli entrepreneurs?

It sounds very intriguing and I know that Israel would like to position itself as a leader in this field. If partnerships can be formed for its development with European companies, that would be another sign of how Israeli and European businesses are increasingly finding significant synergies.

Of course, the EC continues through FP7 the funding of research into clean-car technologies, including the development of electrically-powered cars.

How can the European Union's institutions help promote that initiative in Europe?

One of roles of the EU's institutions is to put in place the legal frameworks that promote important areas like the use of clean energy and energy-saving devices. But it would be improper and unfair for them to intervene to support the initiative of this or that company regardless of whether the company is Israeli or European. This is a matter for the private sector.

How can Israeli small- and medium-sized enterprises reach out for a bigger share in the European market?

This is mainly a question and a challenge for the Israel Export and International Cooperation Institute, but the European Commission is helping by giving the institute access to the Euro Info Center network. The Israeli branch of this network is based at the institute. This allows Israeli exporters who open a file at the center to link up with another 300 similar Euro Info Centers situated in 48 countries, which makes this the biggest business network in the world. Through this network Israeli exporters can disseminate their profiles, receive information on business opportunities in the European Union, and also identify possible partners for business opportunities and investments in Israel.

Israel is also the first neighboring country of the EU to participate in the Competitiveness and Innovation Program, under which the European Commission promotes innovation, entrepreneurship and growth of small- and medium-sized enterprises. Israel has joined the first of three pillars under the CIP, the Entrepreneurship and Innovation Program. Through the CIP, Israel can cooperate with all 27 member states of the European Union, as well as with other third countries joining the CIP, on a large variety of projects and schemes on competitiveness and innovation. The CIP program runs from 2007 to 2013 with a budget of €3.6 billion.

Last but not least, the recently established EU-Israel Business Dialogue, which is chaired on the Israeli side by Mr. Yossi Vardi, the hi-tech entrepreneur, is another mechanism to help Israeli companies, including SMEs increase their business links with Europe.

syrquin@013.net

Ari Syrquin is the head of the International Department at Joseph Shem-Tov Law Firm

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