EU & Malaysia News
million over the next two years, which will support those developing partners that “opt in” to the initiative by providing EU expertise in the field; thereby promoting sustainable development and inclusive growth.As the largest provider of development assistance in the world, the EU plays a crucial role in efforts to end energy poverty around the globe. European Commission President José Manuel Barroso said: “The link between energy and development is fundamental. Without energy access, we simply will not meet the Millennium Deve lopment Goals. That’s why we’ve organised today’s summit – we are committed to the aim of providing universal access to sustainable energy for all by 2030. By bringing together our partners, the private sector and civil society, we will work shoulder to shoulder to make this aim a reality. With today’s strong pledge that we will assist developing countries in providing energy access for 500 million people by 2030, we are demonstrating our own
commitment and hope that others will join us in making sure that by 2030, energy access is no longer a privilege but the right of all.” UN Secretary-General, Ban Ki-moon said: “I welcome the commitment by the European Commission in support of the Sustainable Energy for All initiative. Its strong leadership in making energy central to its development policies, and for advancing the issue of energy access, helps place energy at the forefront of the global development agenda.”
The new EU “Energising Development” initiative will also focus on expanding and improving EU innovative financial instru ments to make sure that the billions of Euros that they leverage result in real change on the ground. This could include, for example, support to develop publicprivate partnerships on energy access in developing countries or setting up risk guarantee schemes in developing countries with a bank. This could potentially result in substantial investments, as it would provide investors with some assurance that their money is secure. The EU is the world’s leading donor on energy. In the recent Agenda for Change Communication in which the EU Commission sets out the bases for a reinforced development policy, energy was confirmed as one of its key priorities. Source: www.europa.eu
EU Adopts Blueprint for open and Stable Investment Climates In April 2012, EU Trade Commissioner Karel De Gucht and Deputy Assistant to the President of the United States Michael Froman agreed on an ambitious set of investment principles and openly invited other countries to follow suit. In the framework of the Transatlantic Economic Council (TEC), the EU and the US have developed a blueprint for creating and maintaining stable, predictable and transparent investment regimes. The principles cover the elements which the EU believes are necessary to attract long-term sustainable investment.
to maintain open, transparent and nondiscriminatory investment climates. Simultaneously it confirms that govern ments can commit to a high level of investment protection and still maintain the right to regulate in order to pursue legitimate public policy objectives. In the view of the EU, such objectives include the environment, health, safety, labour or cultural diversity. The Statement also stresses that governments should not lower their standards, for example in relation to human rights or the environment, in order to attract foreign direct investment.
“Open investment markets generate growth and jobs – and these investment principles will support such an open investment climate,” said EU Trade Commissioner Karel De Gucht. “It’s another example of where the EU and the US are working together to keep trade and investment flowing worldwide.”
The EU and US have implemented these principles in their own respective investment regimes and call on other countries to consider them with a view to strengthening international investment markets.
The Statement on Shared Principles for International Investment urges governments
The EU tops the tables as largest source and destination for FDI in the global economy and after a severe decline in 2009, FDI flows are now slowly recovering. Global FDI inflows rose 5% to €930 billion
in 2010, according to the United Nations Conference on Trade and Development (UNCTAD) and are considered to be rising slowly towards the pre-crisis levels. According to the 2011 UNCTAD’s World Investment Report: • EU investors invested €305 billion outside the EU in 2010; • EU investors control about €6.7 trillion in FDI stock assets overseas, equivalent to about 60% of EU’s GDP; • Foreign investors invested a total of €229 billion in the EU in 2010 and control about €5.25 trillion of assets. For more information visit: http://trade.ec.europa.eu/doclib/docs/2012/ april/tradoc_149331.pdf http://trade.ec.europa.eu/doclib/docs/2012/ april/tradoc_149332.pdf Source: www.europa.eu
EUMCCI Review 23
Coverage of the EUMCCI Quarterly Financial Panel Discussion and a main feature from IFBIM.