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Category: Climate Change

  • MIL-OSI USA: Volcano Watch — The nose knows (and so did HVO gas instrumentation…eventually)

    Source: US Geological Survey

    Volcano Watch is a weekly article and activity update written by U.S. Geological Survey Hawaiian Volcano Observatory scientists and affiliates.

    A USGS scientist aims the viewfinder of an infrared spectrometer to measure the chemistry of volcanic gas on the last day of the Nāpau eruption, September 20, 2024. USGS photo by P. Nadeau.

    It was indeed a dark and stormy night when the eruption started on September 15, 2024. So much so that when we had conflicting geophysical data (tremor and increased infrasound, but no changes in tilt), our webcams were no help. The poor weather meant that cameras couldn’t see anything, and the southerly wind direction on that rainy night also meant that none of the HVO gas monitoring stations could detect whether there was eruptive degassing or not.

    But you know who could tell there was degassing? Residents of Volcano. Community members in more than one part of Volcano took to social media to report sulfurous odors and burning smells. 

    Still, some HVO staff members living in the area reported only smelling the burning, without sulfur. Their gas badges (used for situational awareness and safety, not precise volcanic gas measurements) didn’t register SO2 (sulfur dioxide) above background. Many times, winds that blow from the East Rift Zone towards Volcano may bring residual H2S (hydrogen sulfide) from the inactive Puʻuʻōʻō area, and H2S can be especially prevalent during rainy periods, like that dark and stormy night in September. So even amidst community reports of sulfur smells, we couldn’t be completely sure if there was an eruption.

    Thankfully, the weather cleared in the morning (September 16). HVO confirmed that there had been a small fissure eruption west of Puʻuʻōʻō, and we were no longer restricted to people’s noses to indicate whether there was eruptive degassing or not. The SO2 emission rate was measured to be only about 300 tonnes per day (t/d), which is consistent with the absence of eruptive activity. 

    It seemed like the eruption might be over, but by the next morning (September 17), it was in full force again, and SO2 emissions had climbed to nearly 12,000 t/d. Winds had also switched to the right direction (from the north) for one of our East Rift Zone gas monitoring stations to detect a whiff of the SO2 as well. Emissions then decreased to about 3,500 t/d by that afternoon as the lava fountaining weakened. Emissions were similar, around 2,000 t/d, the next morning, September 18. 

    Again, activity seemed to be waning until later on the 18th, when things escalated once more, which was reflected in increasing SO2 emissions. That afternoon, HVO scientists were measuring the plume with an ultraviolet (UV) camera that can see SO2 when the imagery began to show a more intense plume. 

    At that point, gas scientists recognized that changes were occurring and switched back to more reliable UV spectrometer measurements, which revealed a progressive increase in SO2 emission rate over the course of the afternoon. In conjunction with the opening of new fissures and the development of ‘lava falls’ cascading over Nāpau Crater rim, emissions increased from 5,000 t/d at about 3:30 p.m. to roughly 12,000 t/d at 5:00 p.m., when it became too late to continue UV-based measurements.

    With the fissures and lava falls still going strong, SO2 emissions were around 30,000 t/d the morning of September 19. 

    Yet just one day later, the eruption was over, with SO2 emissions down to only 800 t/d as of late morning on September 20. Luckily, HVO gas scientists were able to measure gases from the last gasp of lava earlier that morning using an infrared spectrometer, which measures the chemistry of erupted gas. The gases were low in carbon dioxide (CO2), and therefore derived from magma that previously lost CO2 while in the shallow magma plumbing system before eruption. This is very similar to other Kīlauea East Rift Zone eruptions and to recent Kīlauea summit eruptions. 

    A final SO2 emission rate measured on September 21, after the eruption had ended, showed that just under 100 t/d of SO2 were being emitted from the inactive fissures. By two days later, SO2 emissions from the Nāpau fissures were undetectable on Chain of Craters Road. 

    Even though HVO was ultimately able to track the variable gas emissions throughout the Nāpau eruption with our UV spectrometer, a UV camera, permanent stations, and an infrared spectrometer, we know we weren’t the first to sniff the gases from the Nāpau eruption – that honor still goes to the residents of Volcano!

    Volcano Activity Updates

    Kīlauea has been erupting intermittently within the summit caldera since December 23, 2024. Its USGS Volcano Alert level is WATCH.

    The summit eruption at Kīlauea volcano that began in Halemaʻumaʻu crater on December 23 continued over the past week, with one eruptive episode. Episode 11 was active from the night of February 25 until the morning of February 26. Kīlauea summit has been inflating since episode 11 ended, suggesting that another eruptive episode is possible. Sulfur dioxide emission rates are elevated in the summit region during active eruption episodes. No unusual activity has been noted along Kīlauea’s East Rift Zone or Southwest Rift Zone. 

    Mauna Loa is not erupting. Its USGS Volcano Alert Level is at NORMAL.

    Three earthquakes were reported felt in the Hawaiian Islands during the past week: a M3.4 earthquake 14 km (8 mi) S of Volcano at 0 km (0 mi) depth on Feb. 27 at 3:33 a.m. HST, a M3.3 earthquake 16 km (9 mi) W of Kailua-Kona at 14 km (8 mi) depth on Feb. 23 at 9:31 p.m. HST, and a M2.7 earthquake 13 km (8 mi) NNE of Hawaiian Ocean View at 9 km (5 mi) depth on Feb. 20 at 7:36 a.m. HST.

    HVO continues to closely monitor Kīlauea and Mauna Loa.

    Please visit HVO’s website for past Volcano Watch articles, Kīlauea and Mauna Loa updates, volcano photos, maps, recent earthquake information, and more. Email questions to askHVO@usgs.gov.

    MIL OSI USA News –

    February 28, 2025
  • MIL-OSI Canada: Special Public Avalanche Warning in place for BC and western Alberta backcountry

    Source: Government of Canada regional news

    From Avalanche Canada: https://avalanche.ca/news/20250227-spaw
    French version: https://avalanche.ca/fr/news/20250227-spaw

    Avalanche Canada, in partnership with Parks Canada, Alberta Parks, and the Province of British Columbia, has issued a Special Public Avalanche Warning for recreational backcountry users across most forecast regions in BC and Alberta. This special warning is in effect immediately and remains in place through Monday, March 3.

    A cohesive slab of snow 30 to 100 centimetres thick sits over a variety of prominent weak layers in the upper snowpack that formed during dry periods in January and February. This has created a reactive avalanche problem leading to serious incidents and close calls. While natural avalanche activity has slowed, human-triggered avalanches remain likely.

    “We’ve been tracking these weak layers closely over this past month,” says Avalanche Canada Avalanche Forecaster Zoe Ryan. “Now that the snow on top of them has consolidated, it’s a recipe for dangerous avalanches. These highly problematic layers remain primed for human triggering.”

    “We know backcountry users are eager to enjoy the snow,” adds Ryan, “but this is a tricky avalanche problem. The snowpack is going to take time to strengthen. Good travel habits and selecting conservative terrain will be critical because getting caught in one of these avalanches could be deadly.”

    To reduce risk, Avalanche Canada recommends:

    • Sticking to lower-angle slopes (less than 30 degrees)
    • Choosing terrain that minimizes the consequences of an avalanche
    • Traveling one at a time when exposed to avalanche terrain
    • Avoiding sun-exposed slopes during warm and/or sunny conditions

    “Avalanche conditions across B.C. are especially dangerous, and I strongly urge people to stay alert and be extra careful,” says Kelly Greene, Minister of Emergency Management and Climate Readiness. “The weather is starting to warm, and that will bring more people to the mountains. Avalanches can have devastating consequences and, tragically, have claimed the lives of two people in B.C. this year. I urge everyone to check the avalanche forecast before heading out, make cautious decisions, and consider delaying their trip to the mountains until conditions are safer.”

    Backcountry users should always check the avalanche forecast at https://avalanche.ca. Everyone in a backcountry group must carry essential rescue gear — an avalanche transceiver, probe, and shovel — and have the training to know how to use it. 

    For a map of the SPAW regions, click: https://asset.cloudinary.com/avalanche-ca/e51a348a2e1e74f71b8e525a4da47a3f

    MIL OSI Canada News –

    February 28, 2025
  • MIL-OSI USA: Making Innovation Happen: New IN² Cohort Focuses on Advanced Energy Implementation

    Source: US National Renewable Energy Laboratory


    Teens sit outside of Ponderosa High School in Coconino County, Arizona, in the garden that students created and maintained. Photo from Ponderosa High School

    At Ponderosa High School in Coconino County, Arizona, students are determined to overcome obstacles on their path to graduation. Some arrive behind on credits, while others are returning to the classroom after time away. The alternative school offers more than a second chance—it is an opportunity for transformation.

    That is just one reason why Coconino County Schools selected Ponderosa as the focus of an advanced energy initiative through the Wells Fargo Innovation Incubator (IN2), managed by the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL).

    “Our goal at Ponderosa is to create opportunities that shift perspectives—helping students see a hopeful future and discover industries they may not have considered,” Ponderosa High Principal Les Hauer said. “The energy future is full of possibility, and this initiative helps us show students what’s possible while preparing them to succeed.”

    Coconino County is one of 10 members of IN2’s latest cohort, which marked a significant milestone for the program. For the first time in its 10-year history, IN2 shifted its focus from supporting startups to implementing energy technologies within established organizations.

    Before pitching their projects in December 2024, participants engaged in months of preparation and education, including technology selection and impact analyses. The pitch session culminated in the cohort presenting their plans to install and use a tool or system within six months, with winners receiving a share of $750,000 in Wells Fargo funding to bring their projects to life.

    “This is a monumental new direction for IN2,” said IN2 Program Manager Sarah Derdowski. “IN2 continues to help startups move forward over the ‘valleys of death,’ but now we also get to support the implementation of innovative technologies and make real progress in building a resilient, adaptable future.”

    Pumpkins grow in the student garden outside of Ponderosa High School. Photo from Ponderosa High School

    The participants in the cohort are:

    • Avangrid
    • Coconino County
    • CBRE
    • Digital Realty
    • Galvanize Real Estate (GRE)
    • Intermountain Health
    • Prime Data Centers
    • Schneider Electric
    • Southern Company
    • University of Colorado Boulder.

    Although some cohort members are large companies, they face unique barriers where IN2’s support is invaluable. During pitch day, one of the presenters made the problem plain: Even large, well-funded organizations may find resistance to innovative technologies if they might compromise profitability.

    “Pursuing new technologies is often seen as a cost and business risk for any size organization,” said Howard Branz, director of science and impact for Galvanize Climate Solutions. “At GRE, our scientists and investors work together to mitigate these risks by piloting technologies in real-world settings where we can test and prove their performance, ensuring that increasing profitability and meeting our metrics go hand-in-hand. The IN2 award allows us to further accelerate the deployment of cutting-edge building technology solutions, advancing our goals.”

    Coconino County’s Teaching Moment

    Coconino County’s ambitious vision stood out among the pitches in early December with its goal of reducing the district’s energy consumption by 40% while creating a replicable school model for the region.

    “We hope to transform our local schools by serving as a demonstration site for retrofitting and energy practices,” Superintendent Cheryl Mango-Paget said.

    Ponderosa High School, located near the Grand Canyon, has about 70 students. The district identified heating, ventilation, and air conditioning (HVAC) as the best opportunity because it could have the greatest impact. The district’s aging air conditioning units are due for replacement, and the hope is that Ponderosa can serve as a blueprint for surrounding schools.

    To achieve that, Coconino County would integrate three technologies in one building. Blue Frontier, a company that graduated from IN2 several years ago, will install a new AC unit that uses liquid desiccant technology developed by NREL. Rensair will improve air quality. And Komfort will address energy through lighting. The single Blue Frontier unit could replace up to 18 AC units already on the building. Estimates done during IN2 show the new systems, at minimum, could cut utility costs by 50%.

    Participants from Coconino County pitch their proposal during the pitch day in early December 2024. Photo by Agata Bogucka, NREL

    “This partnership with NREL and IN2 is a powerful teaching tool,” Hauer said. “We’re giving students a hands-on experience beyond the classroom by letting them observe the installation process.”

    While the students will not install the systems themselves, they will learn from the process and gain insight into future job opportunities in the HVAC and advanced energy industries.

    CBRE’s AC Pivot

    When Jeff Dunbar, senior sustainability director for CBRE, first got involved with IN2, he thought their project would focus on advanced cement. Then he realized they only had six months to implement, so he pivoted to a faster solution: rooftop HVAC units.

    “We replace thousands of rooftop units every year in the U.S.,” Dunbar said. “This became an easy lever for us to pull.”

    CBRE manages more than 7 billion square feet of property around the world and spent more than $33 billion with suppliers last year globally. Once CBRE identified the HVAC direction, NREL helped pinpoint where to go next.

    Jeff Dunbar, senior sustainability director for CBRE, pitches the company’s proposal during the IN2 pitch day. Photo by Agata Bogucka, NREL

    “I stood in a room at NREL and stared at Blue Frontier’s mockup of this technology while an NREL engineer explained how it works,” Dunbar said. “Together, we found our ‘Goldilocks’ site that matches the necessary specs on a building in Delaware.”

    The pilot project will install and test Blue Frontier’s unit on this building in Delaware, with the potential of replicating it at other sites nationwide. The system is designed as a drop-in replacement—it integrates seamlessly with existing infrastructure and eliminates the need for costly modifications.

    “Our hope is that by the end of the first summer season, the results will give us the confidence to move forward with other sites,” Dunbar said during the pitch.

    Additionally, CBRE is not giving up on the idea of an advanced cement project.

    “As an offshoot, NREL pulled us into conversations with several advanced concrete partners about a potential project in 2025,” Dunbar said. “We can continue to pursue the concrete challenge outside of the IN2 program.”

    Intermountain Health’s Strive for Change

    Glen Garrick, system sustainability director for Intermountain Health, is also working with NREL on a project separate from the IN2 pitch he presented. The company has 16 traditional shuttles, and it wants to change that and incorporate advanced technologies.

    Initially, the employee responsible for managing the fleet resisted the idea, uncertain about its feasibility. But the project gained momentum after a visit to NREL.

    “We flew out to NREL and sat in a room talking with 10 experts,” Garrick said. “Some on our team had a healthy skepticism about the shuttles. But after candid discussions with subject matter experts and experienced professionals from NREL, those individuals on our team completely changed their mindset.”

    With approximately 400 clinics and 34 hospitals across the Intermountain West, Intermountain Health plans to order the first set of shuttles in 2025 and begin using them in 2026.

    In addition to the shuttles, Garrick presented a pilot project at one location that would include a solar canopy with panels that move with the sun and battery storage for advanced energy.

    “We tried to find projects that have a long payback because those wouldn’t get approved without IN2,” Garrick said. “It’s not meant to be a huge sexy project—it’s a demonstration project that helps us start to shift toward more on-campus renewables.”

    The driving force is to avoid taking money away from patient care.

    “Every dollar that goes to energy or waste is one less for patient funding,” he said. “Whenever I can bring in external funding, that’s money saved for patient care.”

    During the IN2 pitch day, the attendees networked with each other in between the pitches from the different participants. Photo by Agata Bogucka, NREL

    NREL’s Assistance

    This IN2 cohort did not have to figure out the solutions to their challenges on their own. With guidance from NREL experts and support from consulting firm Overlay Build, participants overcame technical and strategic hurdles unique to their companies to move their projects forward.

    For Coconino County, narrowing down a daunting list of 168 potential HVAC technologies was a critical first step.

    “When I saw the list, first I cried,” Mango-Paget said. “But IN2 and NREL helped us discover the best bang for our buck, and that led us to three companies that could make the biggest impact.”

    NREL’s support did not stop at the planning phase. For CBRE, NREL’s direct involvement in monitoring the Delaware pilot will ensure a smooth transition from concept to implementation.

    “The scientists who helped birth this liquid desiccant technology are going to come help monitor the site in Delaware,” Dunbar said. “That helps de-risk it for us. We’re trying to do this at scale; it’s exciting to be at the front end of that curve.”

    The value of NREL’s expertise also extends beyond IN2’s formal structure. Garrick believes Intermountain’s partnership with NREL will continue independently of the IN2 project.

    “I could see a new project evolving in the next six months,” he said. “We have all the contacts, and I think it’s entirely possible we’ll reach out directly for support.”

    By providing both education now and actionable solutions down the road, NREL and IN2 have empowered these organizations to overcome barriers, adopt innovative technologies, and make measurable progress.

    Winners

    Five of the 10 participants in this first-of-its-kind cohort earned monetary awards.

    • CBRE received $150,000 for its project, which will cover the engineering, design, and construction costs for the pilot and a scalability study.
    • Coconino County received $55,000 for the Rensair and Komfort parts of its project.
    • Digital Realty received $125,000 to partner with Hayzel and improve chilling in its data centers in Santa Clara, California.
    • Galvanize Real Estate received $200,000 to work with EnKoat, an IN2 portfolio company, and Alpen for a pilot on a building in Pedricktown, New Jersey.
    • The University of Colorado Boulder received $220,000 to work with INOVUES to retrofit existing windows in aging buildings with hermetically sealed high-performance glass.

    All the pilot projects must be completed within six months. NREL will keep track of their progress and post updates in the future.

    And the participants—including the five teams that did not earn funding—are walking away with tailored technology adoption playbooks and access to expertise in digitization and change management.

    “Alongside the new relationships formed with NREL, the program itself is an award,” Derdowski said. “We’re already seeing renewed efforts to change the culture at all of these organizations.”

    “I’m really glad we went through the process because we saved one project because of it,” Garrick said. “If it wasn’t for that contact with NREL, that project would have died.”

    Updates on how the installations proceed will be found on www.in2ecosystem.com later this year.

    MIL OSI USA News –

    February 28, 2025
  • MIL-OSI Australia: Public comment opens for draft Heritage Management Plan, Mawson’s Huts Historic Site, 2025

    Source: Australian Government – Antarctic Division

    The Department of Climate Change, Energy, the Environment and Water, as manager of the Antarctic site at Cape Denison, has prepared a draft Heritage Management Plan for the Mawson’s Huts Historic Site and is seeking comment on the proposed Mawson’s Huts Historic Site Management Plan 2025.

    Constructed during the Australasian Antarctic Expedition 1911-1914 by Sir Douglas Mawson and his team, Mawson’s Huts Historic Site at Cape Denison is a place of great historical and social significance, and is listed on both the National and Commonwealth Heritage lists.
    In accordance with sections 324S and 341S of the Environment Protection and Biodiversity Conservation Act 1999, the Department invites comment on the Draft Mawson’s Huts Historic Site Heritage Management Plan 2025 from members of the public, key stakeholders, community groups, and Indigenous people with an interest in the place.
    The draft Mawson’s Huts Historic Site Heritage Management Plan 2025 can be viewed online and comments submitted via the Department’s consultation hub at: https://consult.dcceew.gov.au/
    The closing date for public comment is 5:00pm AEDT, on 1 April 2025.
    This content was last updated 4 minutes ago on 28 February 2025.

    MIL OSI News –

    February 28, 2025
  • MIL-OSI USA: Secretary Dev Sangvai Visits Western North Carolina

    Source: US State of North Carolina

    Headline: Secretary Dev Sangvai Visits Western North Carolina

    Secretary Dev Sangvai Visits Western North Carolina
    jwerner
    Thu, 02/27/2025 – 16:33

    North Carolina Health and Human Services Secretary Dev Sangvai traveled to western North Carolina this week to meet with health care and social services partners to learn more about the status of Hurricane Helene recovery efforts and discuss the impacts of staffing shortages and other challenges they face. Together, we are committed to recovery efforts and supporting staff as we continue to create a healthier North Carolina for all.

    Black Mountain Neuro-Medical Treatment Center

    Secretary Sangvai began the first day of his trip on Tuesday, Feb. 25, in Buncombe County for a site visit and informational meeting with staff at the Black Mountain Neuro-Medical Treatment Center (BMNTC), one of three state-operated facilities in North Carolina that serves adults with chronic and complex medical conditions that co-exist with neurodevelopmental and/or neurocognitive disorders and/or a diagnosis of severe and persistent mental illness. 

    Secretary Sangvai was led on a tour of the facility, including one of the residential units, to learn more about the quality care received by patients both during and after Hurricane Helene. He also visited the third floor of the Gravely Wing at BMNTC to assess the status of renovations that were planned prior to Helene  and are estimated to be completed by July 2025.

    Secretary Sangvai met with the BMNTC Executive Committee to discuss the successes and areas of concern among staff members. The facility has largely recovered from the devastation left by Hurricane Helene, returning to normal operations with all evacuated residents returning to BMNTC. Employees shared concerns regarding staffing shortages as well as recruitment and retention challenges, particularly in nursing positions. BMNTC has ramped up recruitment efforts this quarter as unemployment in the region has spiked due to business closures in the wake of Helene.

     NCDHHS Secretary Dev Sangvai and Chief Deputy Secretary for Operational Excellence Dr. ClarLynda Williams-Devane travel to western North Carolina to meet with health care and social services partners. 

    Julian F. Keith Alcohol and Drug Abuse Treatment Center

    Following the visit to BMNTC, Secretary Sangvai continued his travels through Black Mountain to the Julian F. Keith Alcohol and Drug Abuse Treatment Center (JFK). There, he met with staff to learn more about the facility and services offered as well as the status of recovery efforts. He also went on a tour to get a more comprehensive look at the various services JFK staff provide their patients.

    Secretary Sangvai heard from JFK staff about their continued work to recover from the effects of Hurricane Helene, all while battling staffing shortages, closures to the facility and increased mental health challenge among the community they serve.  JFK staff cared for and assisted in the evacuation of patients during Hurricane Helene, standing up a detox unit at Broughton Hospital to provide a place of respite for those unable to seek care at JFK. A huge win for JFK staff recently came in the form of the treatment center reopening their kitchen after a seven-month long closure .

    “I am so grateful for the work being done at our facilities as recovery continues from the devastation left behind by Hurricane Helene,” said Secretary Sangvai. “These teams have worked tirelessly to provide life-changing care. This commitment matches what I have seen across the department, as we work to improve access to care and ensure people receive the care they need no matter where they live or how much money they make.”

    Cherokee Indian Hospital Authority

    On Wednesday, Feb. 26, Secretary Sangvai traveled to Cherokee, NC, to meet with the Eastern Band of Cherokee Indians (EBCI) and the Cherokee Indian Hospital Authority (CIHA). EBCI has contracted with NCDHHS to participate in NC Medicaid, thereby providing access to Medicaid managed care services for federally recognized Tribal Members and other individuals eligible to receive Indian Health Services. Through this partnership with NCDHHS, EBCI is the first Tribal-led Medicaid managed care entity in the country, aligning Medicaid services with Tribal health priorities and providing care for enrolled EBCI members.

    During his visit, Secretary Sangvai learned about the status of NCDHHS and CIHA’s multiple partnerships, including the development of a Child Crisis Stabilization Unit on the Qualla Boundary, the location of CIHA’s main hospital. The new unit will provide emergency mental health stabilization services for youth experiencing an acute psychiatric crisis. A revolutionary care model for western North Carolina, the unit will serve both tribal and non-tribal youth, ensuring that all children in the region have access to these critical resources.  

    Secretary Sangvai saw first-hand during his trip that CIHA has also been battling recruitment difficulties, struggling to address rural health care workforce shortages and retention issues. Despite these challenges, CIHA is a pillar of health care excellence for the EBCI, working diligently to deliver high-quality, patient-centered care that honors and integrates the rich heritage of Cherokee culture.

    Broughton Hospital

    Later in the day, Secretary Sangvai visited Broughton Hospital, one of three psychiatric hospitals operated by the NCDHHS Division of State Operated Healthcare Facilities, to tour the facility and learn more about the hospital’s priorities as western North Carolina moves forward from Hurricane Helene. He spoke with staff as he toured the patient care center, gym, chapel and treatment mall.

    Broughton staff emphasized their struggles to recruit and retain staff with a high number of vacancies in full-time positions at the facility. These staffing shortages directly impact the hospital’s ability to serve more patients, limiting the number of beds that can be filled and increasing wait times prospective patients may face before receiving care. Hospitals are growing increasingly reliant on temporary employees, especially for nursing and medical staff, due in part to salaries that struggle to compete with others on the job market.

    “The staff at our state operated psychiatric hospitals work incredibly hard to provide critical support to their patients every day,” Secretary Sangvai said. “I will continue to advocate for the resilient staff that serve our state and support NCDHHS’ efforts to strengthen the health care workforce in order to improve capacity limitations, so more patients are able to quickly access needed care.”

    J. Iverson Riddle Developmental Center

    On Thursday morning, Feb. 26, Secretary Sangvai traveled to Burke County, making his first stop at J. Iverson Riddle Developmental Center (JIRDC), one of three State Developmental Centers which provides services and support to individuals with intellectual and developmental disabilities (I/DD), complex behavioral challenges and/or medical conditions whose clinical treatment needs exceed the supports currently available in the community. He toured JIRDC, making a visit to one of the homes at the facility to greet staff and residents.

    Facility leadership voiced concerns regarding recruitment, including filling key positions at JIRDC. Despite recent measures taken to increase Direct Support Professionals and Registered Nurses salaries, JIRDC still struggles from a 23% vacancy rate, impacting staff’s ability to serve more patients.

    In addition to staff’s efforts to recover from Hurricane Helene, JIRDC housed approximately one-third of BMNTC residents during local infrastructure repairs. As many employees face burnout amidst an unprecedented crisis, Secretary Sangvai pledged to continue to prioritize the well-being of the health care workforce in North Carolina and to ensure the sustainability and functionality of state operated healthcare facilities for patients and staff.

    Burke County DSS

    The Secretary then traveled to the Burke County Department of Social Services, where he toured facilities and met with local social services staff. Staff at Burke County DSS worked to quickly respond to issues as Hurricane Helene hit their community. Their team had to navigate a total loss of communications systems, staffing shortages, burnout and the increased stress of managing a large-scale recovery operation in the wake of the storm. Today, Burke County DSS has fortunately largely returned to “normal” operations. This is partially because as a county on the eastern edge of Helene’s path, Burke County saw fewer individuals permanently displaced than some other counties impacted by the storm.

    Secretary Sangvai spoke with Burke County DSS Director Korey Fisher-Wellman to form a better understanding of the issues facing their office and other county DSS offices across the state. The Secretary reinforced NCDHHS’ ongoing commitment to support recovery efforts as western North Carolina continues to recover and rebuild.

    Blue Ridge Regional Hospital

    Secretary Sangvai concluded his trip on Thursday at Blue Ridge Regional Hospital, which has served as a Critical Access Hospital for the people of western North Carolina since 1955. The Secretary was joined by CEO and Chief Nurse Tonia Hale, and the Vice President of Government Relations for HCA Healthcare Lori Kroll , for a tour of the hospital and a presentation on workforce development and Hurricane Helene recovery. The team highlighted the hospital’s efforts to bounce back from the hurricane, and Secretary Sangvai shared NCDHHS’ commitment to work with hospitals across the state to address the impacts of staffing shortages and support recruitment and retention efforts.

    Please see more photos from Secretary Sangvai’s visit.

    Feb 27, 2025

    MIL OSI USA News –

    February 28, 2025
  • MIL-OSI: HCI Group Reports Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter Pre-Tax Income of $5.9 million and Diluted EPS of $0.23
    Full Year 2024 Pre-Tax Income of $173.4 million and Diluted EPS of $8.89

    TAMPA, Fla., Feb. 27, 2025 (GLOBE NEWSWIRE) — HCI Group, Inc. (NYSE:HCI) reported pre-tax income of $5.9 million and net income of $4.1 million in the fourth quarter of 2024. Net income after noncontrolling interests was $2.6 million compared with $38.1 million in the fourth quarter of 2023. Diluted earnings per share were $0.23 in the fourth quarter of 2024, compared with $3.40 diluted earnings per share, in the fourth quarter of 2023.

    Adjusted net income (a non-GAAP measure which excludes net unrealized gains or losses on equity securities) for the fourth quarter of 2024 was $5.0 million, or $0.31 diluted earnings per share compared with adjusted net income of $38.8 million, or $3.22 diluted earnings per share, in the fourth quarter of 2023. This press release includes an explanation of adjusted net income as well as a reconciliation to net income and earnings per share calculated in accordance with generally accepted accounting principles (known as “GAAP”).

    Management Commentary
    “Even with the hurricanes in 2024, HCI Group is unwavering in its commitment to Florida and supporting our existing and new policyholders. As part of our ongoing efforts, we plan to keep rates flat for the foreseeable future,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “Given an increased level of catastrophe activity across the country, we are taking initial steps to make our best-in-class technology available to other carriers and in additional geographies.”

    Fourth Quarter 2024 Commentary
    Consolidated gross premiums earned in the fourth quarter increased by 38.0% to $297.5 million from $215.2 million in the fourth quarter of 2023 driven primarily by assumptions of policies from Citizens Property Insurance Corporation.

    Premiums ceded for reinsurance in the fourth quarter were $151.1 million compared with $66.6 million in the fourth quarter of 2023. The fourth quarter included the reversal of $50.6 million of previously accrued benefits related to retrospective reinsurance provisions as a result of losses caused by Hurricane Milton.

    Net investment income in the fourth quarter was $14.5 million compared with $10.3 million in the fourth quarter of 2023. The increase was primarily attributable to an increase in interest income from cash, cash equivalents and available-for-sale fixed maturity securities.

    Losses and loss adjustment expenses in the fourth quarter were $110.7 million compared with $65.4 million in the fourth quarter of 2023. Loss expenses in the fourth quarter of 2024 include a net loss of $78.0 million from Hurricane Milton, partially offset by $24.5 million of favorable development mostly related to the 2024 accident year.

    Policy acquisition and other underwriting expenses in the fourth quarter were $27.7 million compared with $22.7 million in the fourth quarter of 2023.

    General and administrative personnel expenses in the fourth quarter decreased to $10.2 million from $12.2 million in the fourth quarter of 2023. The decrease was attributable to lower stock-based compensation as well as higher reinsurance recoveries related to claims processing for Hurricane Milton.

    Full 2024 Results
    For the year ended December 31, 2024, the company reported pre-tax income of $173.4 million and net income of $127.6 million. Net income after noncontrolling interests was $110.0 million compared with $79.0 million for the year ended December 31, 2023. Diluted earnings per share were $8.89 for the year ended December 31, 2024, compared with $7.62 diluted earnings per share for the year ended December 31, 2023.

    Adjusted net income (a non-GAAP measure which excludes net unrealized gains or losses on equity securities) for the twelve month period was $125.6 million, or $8.75 diluted earnings per share compared with adjusted net income of $86.8 million, or $7.41 diluted earnings per share in the same period of 2023. An explanation of this non-GAAP financial measure and reconciliations to the applicable GAAP numbers accompany this press release.

    Consolidated gross premiums earned for the twelve months of 2024 increased by 41.5% to $1,083.2 million from $765.5 million in 2023 driven primarily by growth in Florida due to assumptions of policies from Citizens Property Insurance Corporation.

    Premiums ceded for reinsurance for the twelve months of 2024 were $405.7 million compared with $269.6 million for the twelve months of 2023. The twelve months of 2024 included the reversal of $62.9 million of previously accrued benefits related to retrospective reinsurance provisions as a result of losses caused by Hurricanes Helene and Milton.

    Net investment income for the twelve months of 2024 was $59.1 million compared with $46.2 million for the twelve months of 2023. The increase was primarily attributable to an increase in interest income from cash, cash equivalents, and available-for-sale fixed maturity securities, offset by a decrease in income from real estate investments.

    Losses and loss adjustment expenses for the twelve months of 2024 were $374.7 million compared with $254.6 million for the twelve months of 2023. Loss expense included $78.0 million from Hurricane Milton, $43.0 million from Hurricane Helene and $6.5 million from Hurricane Debby.

    Policy acquisition and other underwriting expenses for the twelve months of 2024 were $99.4 million compared with $90.8 million for the twelve months of 2023.

    General and administrative personnel expenses for the twelve months of 2024 increased to $63.2 million from $53.9 million for the twelve months of 2023.

    Conference Call
    HCI Group will hold a conference call later today, February 27, 2025, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel, Chief Operating Officer Karin Coleman and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern time.

    Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company’s website at www.hcigroup.com.

    Listen-only toll-free number: (888) 506-0062
    Listen-only international number: (973) 528-0011
    Entry Code: 835158

    Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.

    A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at www.hcigroup.com through February 27, 2026.

    Toll-free replay number: (877) 481-4010
    International replay number: (919) 882-2331
    Replay ID: 51955

    About HCI Group, Inc.
    HCI Group, Inc. is a holding company with two distinct operating units. The first unit includes four top-performing insurance companies, a captive reinsurance company, and operations in claims management and real estate. The second unit, called Exzeo Group, is a leading innovator of insurance technology that utilizes advanced underwriting algorithms and data analytics. Exzeo empowers property and casualty insurers to transform underwriting outcomes and achieve industry-leading results.

    The company’s common shares trade on the New York Stock Exchange under the ticker symbol “HCI” and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

    Forward-Looking Statements
    This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “confident,” “prospects” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Some of these risks and uncertainties are identified in the company’s filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company’s business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.

    Company Contact:
    Bill Broomall, CFA
    Investor Relations
    HCI Group, Inc.
    Tel (813) 776-1012
    wbroomall@typtap.com

    Investor Relations Contact:
    Matt Glover
    Gateway Group, Inc.
    Tel (949) 574-3860
    HCI@gatewayir.com

    –    Tables to follow    –

     
    HCI GROUP, INC. AND SUBSIDIARIES
    Selected Financial Metrics
    (Dollar amounts in thousands, except per share amounts)
     
      Q4 2024     Q4 2023     FY 2024     FY 2023  
      (Unaudited)                    
    Insurance Operations                      
    Gross Written Premiums:                      
    Homeowners Choice $ 145,085     $ 182,038     $ 593,943     $ 535,070  
    TypTap Insurance Company   174,980       138,482       491,413       363,552  
    Condo Owners Reciprocal Exchange   14,435       –       81,411       –  
    Total Gross Written Premiums   334,500       320,520       1,166,767       898,622  
                           
    Gross Premiums Earned:                      
    Homeowners Choice   156,342       125,796       589,137       417,202  
    TypTap Insurance Company   123,807       89,394       442,876       348,310  
    Condo Owners Reciprocal Exchange   17,348       –       51,207       –  
    Total Gross Premiums Earned   297,497       215,190       1,083,220       765,512  
                           
    Gross Premiums Earned Loss Ratio   37.2 %     30.4 %     34.6 %     33.3 %
                           
    Per Share Metrics                      
    GAAP Diluted EPS $ 0.23     $ 3.40     $ 8.89     $ 7.62  
    Non-GAAP Adjusted Diluted EPS $ 0.31     $ 3.22     $ 6.33     $ 7.41  
                           
    Dividends per share $ 0.40     $ 0.40     $ 1.60     $ 1.60  
                           
    Book value per share at the end of period $ 42.10     $ 33.36     $ 42.10     $ 33.36  
                           
    Shares outstanding at the end of period   10,767,184       9,738,183       10,767,184       9,738,183  
                                   

       

    HCI GROUP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets  
    (Dollar amounts in thousands)
     
      December 31, 2024     December 31, 2023  
               
    Assets          
    Fixed-maturity securities, available for sale, at fair value (amortized cost: $719,536 and $387,687, respectively and allowance for credit losses: $0 and $0, respectively) $ 718,537     $ 383,238  
    Equity securities, at fair value (cost: $52,030 and $44,011, respectively)   56,200       45,537  
    Limited partnership investments   20,802       23,583  
    Real estate investments   79,120       67,893  
    Total investments   874,659       520,251  
               
    Cash and cash equivalents   532,471       536,478  
    Restricted cash   3,714       3,287  
    Receivable from maturities of fixed-maturity securities   —       91,085  
    Accrued interest and dividends receivable   6,008       3,507  
    Income taxes receivable   463       —  
    Deferred income taxes, net   72       512  
    Premiums receivable, net (allowance: $5,891 and $3,152, respectively)   50,582       38,037  
    Assumed premium receivable   —       19,954  
    Prepaid reinsurance premiums   92,060       86,232  
    Reinsurance recoverable, net of allowance for credit losses:          
    Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)   36,062       19,690  
    Unpaid losses and loss adjustment expenses (allowance: $186 and $118, respectively)   522,379       330,604  
    Deferred policy acquisition costs   54,303       42,910  
    Property and equipment, net   29,544       29,251  
    Right-of-use-assets – operating leases   1,182       1,407  
    Intangible assets, net   5,206       7,659  
    Funds withheld for assumed business   11,690       30,087  
    Other assets   9,818       50,365  
               
    Total assets $ 2,230,213     $ 1,811,316  
               
    Liabilities and Equity          
    Losses and loss adjustment expenses $ 845,900     $ 585,073  
    Unearned premiums   584,703       501,157  
    Advance premiums   18,867       15,895  
    Reinsurance payable on paid losses and loss adjustment expenses   2,496       3,145  
    Ceded reinsurance premiums payable   18,313       8,921  
    Assumed premiums payable   2,176       850  
    Accrued expenses   17,677       19,722  
    Income tax payable   5,451       7,702  
    Deferred income taxes, net   2,830       —  
    Revolving credit facility   44,000       —  
    Long-term debt   185,254       208,495  
    Lease liabilities – operating leases   1,185       1,408  
    Other liabilities   32,320       35,623  
               
    Total liabilities   1,761,172       1,387,991  
               
    Commitments and contingencies          
    Redeemable noncontrolling interest   1,691       96,160  
               
    Equity:          
    Common stock, (no par value, 40,000,000 shares authorized, 10,767,184 and 9,738,183 shares issued and outstanding in 2024 and 2023, respectively)   —       —  
    Additional paid-in capital   122,289       89,568  
    Retained income   331,793       238,438  
    Accumulated other comprehensive loss, net of taxes   (749 )     (3,163 )
    Total stockholders’ equity   453,333       324,843  
    Noncontrolling interests   14,017       2,322  
    Total equity   467,350       327,165  
               
    Total liabilities, redeemable noncontrolling interest, and equity $ 2,230,213     $ 1,811,316  
                   
    HCI GROUP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income
    (Unaudited)
    (Dollar amounts in thousands, except per share amounts)
     
      Three Months Ended     Years Ended  
      December 31,     December 31,  
      2024     2023     2024     2023  
                           
    Revenue                      
                           
    Gross premiums earned $ 297,497     $ 215,190     $ 1,083,220     $ 765,512  
    Premiums ceded   (151,146 )     (66,576 )     (405,659 )     (269,627 )
                           
    Net premiums earned   146,351       148,614       677,561       495,885  
                           
    Net investment income   14,486       10,341       59,148       46,234  
    Net realized investment gains (losses)   326       (410 )     3,384       (1,996 )
    Net unrealized investment (losses) gains   (1,181 )     2,830       2,644       3,215  
    Policy fee income   1,302       1,053       4,639       4,704  
    Other   591       242       2,675       2,628  
                           
    Total revenue   161,875       162,670       750,051       550,670  
                           
    Expenses                      
                           
    Losses and loss adjustment expenses   110,727       65,398       374,708       254,579  
    Policy acquisition and other underwriting expenses   27,707       22,716       99,402       90,822  
    General and administrative personnel expenses   10,231       12,230       63,152       53,868  
    Interest expense   3,322       2,822       13,344       11,117  
    Other operating expenses   3,997       5,344       26,018       22,634  
                           
    Total expenses   155,984       108,510       576,624       433,020  
                           
    Income before income taxes   5,891       54,160       173,427       117,650  
                           
    Income tax expense   1,757       13,248       45,846       28,393  
                           
    Net income $ 4,134     $ 40,912     $ 127,581     $ 89,257  
    Net income attributable to redeemable noncontrolling interests   —       (2,360 )     (10,149 )     (9,370 )
    Net income attributable to noncontrolling interests   (1,550 )     (457 )     (7,479 )     (853 )
                           
    Net income after noncontrolling interests $ 2,584     $ 38,095     $ 109,953     $ 79,034  
                           
    Basic earnings per share $ 0.24     $ 4.31     $ 10.59     $ 9.13  
                           
    Diluted earnings per share $ 0.23     $ 3.40     $ 8.89     $ 7.62  
                           
    Dividends per share $ 0.40     $ 0.40     $ 1.60     $ 1.60  
                                   
    HCI GROUP, INC. AND SUBSIDIARIES
    (Amounts in thousands, except per share amounts)
     
    A summary of the numerator and denominator of basic and diluted earnings per common share calculated in accordance with GAAP is presented below.
     
      Three Months Ended     Year Ended  
    GAAP December 31, 2024     December 31, 2024  
      Income     Shares (a)     Per Share     Income     Shares (a)     Per Share  
      (Numerator)     (Denominator)     Amount     (Numerator)     (Denominator)     Amount  
    Net income $ 4,134                 $ 127,581              
    Less: Net income attributable to redeemable noncontrolling interest   —                   (10,149 )            
    Less: Net income attributable to noncontrolling interests   (1,550 )                 (7,479 )            
    Net income attributable to HCI   2,584                   109,953              
    Less: Income attributable to participating securities   (118 )                 (4,110 )            
    Basic Earnings Per Share:                                  
    Income allocated to common stockholders   2,466       10,143     $ 0.24       105,843       9,997     $ 10.59  
                                       
    Effect of Dilutive Securities: *                                  
    Stock options   —       323             —       294        
    Convertible senior notes   —       —             6,908       2,177        
    Warrants   —       143             —       218        
                                       
    Diluted Earnings Per Share:                                  
    Income available to common stockholders and assumed conversions $ 2,466       10,609     $ 0.23     $ 112,751       12,686     $ 8.89  
                                       
    (a) Shares in thousands.  
    *For the three months ended December 31, 2024, convertible senior notes were excluded due to anti-dilutive effect.  
       

    Non-GAAP Financial Measures

    Adjusted net income is a Non-GAAP financial measure that removes from net income of HCI’s portion of the effect of unrealized gains or losses on equity securities required to be included in results of operations in accordance with Accounting Standards Codification 321. HCI Group believes net income without the effect of volatility in equity prices more accurately depicts operating results. This financial measurement is not recognized in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and should not be viewed as an alternative to GAAP measures of performance. A reconciliation of GAAP Net income to Non-GAAP Adjusted net income and GAAP diluted earnings per share to Non-GAAP Adjusted diluted earnings per share is provided below.

    Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

      Three Months Ended
      Year Ended
      December 31, 2024
      December 31, 2024
    GAAP Net income         $ 4,134                 $ 127,581      
    Net unrealized investment losses (gains) $ 1,181                 $ (2,644 )            
    Less: Tax effect at 25.041% $ (296 )               $ 662              
    Net adjustment to Net income         $ 885                 $ (1,982 )    
    Non-GAAP Adjusted Net income         $ 5,019                 $ 125,599      
                                           
    HCI GROUP, INC. AND SUBSIDIARIES
    (Amounts in thousands, except per share amounts)
     
    A summary of the numerator and denominator of the basic and diluted earnings per common share calculated with the Non-GAAP financial measure Adjusted net income is presented below.
       
      Three Months Ended     Year Ended  
    Non-GAAP December 31, 2024     December 31, 2024  
      Income     Shares (a)     Per Share     Income     Shares (a)     Per Share  
      (Numerator)     (Denominator)     Amount     (Numerator)     (Denominator)     Amount  
    Adjusted net income (non-GAAP) $ 5,019                 $ 125,599              
    Less: Net income attributable to redeemable noncontrolling interest   –                 $ (10,149 )            
    Less: Net loss (income) attributable to noncontrolling interests   (1,550 )                 (7,281 )            
    Net income attributable to HCI   3,469                   108,169              
    Less: Income attributable to participating securities   (158 )                 (4,043 )            
                                       
    Basic Earnings Per Share before unrealized gains/losses on equity securities:                                  
    Income allocated to common stockholders   3,311       10,143     $ 0.33       104,126       9,997     $ 10.42  
                                       
    Effect of Dilutive Securities: *                                  
    Stock options   —       323             —       294        
    Convertible senior notes   —       —             6,908       2,177        
    Warrants   —       143             —       218        
                                       
    Diluted Earnings Per Share before unrealized gains/losses on equity securities:                                  
    Income available to common stockholders and assumed conversions $ 3,311       10,609     $ 0.31     $ 111,034       12,686     $ 8.75  
                                       
    (a) Shares in thousands.  
    *For the three months ended December 31, 2024, convertible senior notes were excluded due to anti-dilutive effect.  
       

    Reconciliation of GAAP Diluted EPS to Non-GAAP Adjusted Diluted EPS

      Three Months Ended
      Year Ended
      December 31, 2024
      December 31, 2024
    GAAP diluted Earnings Per Share       $ 0.23               $ 8.89      
    Net unrealized investment gains $ 0.10               $ (0.20 )          
    Less: Tax effect at 25.041% $ (0.02 )             $ 0.06            
    Net adjustment to GAAP diluted EPS         $ 0.08                 $ (0.14 )    
    Non-GAAP Adjusted diluted EPS         $ 0.31                 $ 8.75      

    The MIL Network –

    February 28, 2025
  • MIL-OSI: SECU Foundation Initiates Phase Three Disaster Relief Package of $3.45 Million for Western North Carolina

    Source: GlobeNewswire (MIL-OSI)

    RALEIGH, N.C., Feb. 27, 2025 (GLOBE NEWSWIRE) — The SECU Foundation Board of Directors approved a third phase of Hurricane Helene disaster relief funding totaling $3.45 million for seven non-profit organizations assisting residents and communities in Western North Carolina (WNC). The funding will help address long-term housing needs, resources for at-risk groups, and organizational capacity to meet increased demand for services. Grantees include:

    • Baptists on Mission (Wake County) – $2 million to repair and rebuild up to 100 damaged homes across the western region, including drywall replacement, roof repair, HVAC replacement, and new flooring.
    • Asheville Buncombe Community Christian Ministry (Buncombe County) – $500,000 to increase facility capacity and expand staff resources to onboard and manage a corps of volunteers for delivering regional emergency and disaster relief services.
    • Note in the Pocket (Wake County) – $250,000 to support human resource expansion and deployment for training and volunteer coordination at WNC agencies and to secure temporary warehouse space to accelerate the timeline for processing donated clothing.
    • Mountain Projects (Haywood and Jackson Counties) – $200,000 to assist with organizational capacity to provide case management for the increased number of displaced individuals and families seeking emergency services.
    • Hospitality House of Northwest North Carolina (Watauga County) – $200,000 to assist with increased organizational capacity to provide financial crisis assistance, case management for responding to hurricane-related housing needs, and increased food services for displaced individuals and families in their seven-county service area.
    • Rutherford Housing Partnership (Rutherford County) – $200,000 to increase capacity to fund urgent home repairs, especially for those without insurance or who will not receive government assistance.
    • Crossnore Communities for Children (Avery County) – $100,000 to support trauma resiliency efforts for neighboring communities impacted by Hurricane Helene and restoration of the storm-damaged Crossnore campus to address trauma-related impact for the children and foster families it serves.

    SECU Foundation initially provided a relief package of $3.75 million, then in December added a second phase of giving at $1.75 million. This third phase brings the total to nearly $9 million for relief and recovery efforts.

    “We are so grateful to be able to provide additional funding to assist our Western North Carolina communities,” said SECU Foundation Board Chair Chris Ayers. “The grants made to these seven organizations will help address many crucial areas, including food, housing, and restoration of important services. We look forward to seeing the positive impacts of this funding on our neighbors who have been devastated by Hurricane Helene.”

    About SECU and SECU Foundation
    A not-for-profit financial cooperative owned by its members, and federally insured by the National Credit Union Administration (NCUA), SECU has been providing employees of the state of North Carolina and their families with consumer financial services for 87 years. SECU is the second largest credit union in the United States with $53 billion in assets. It serves more than 2.8 million members through 275 branch offices, 1,100 ATMs, Member Services Support via phone, www.ncsecu.org, and the SECU Mobile App. The SECU Foundation, a 501(c)(3) charitable organization funded by the contributions of SECU members, promotes local community development in North Carolina primarily through high-impact projects in the areas of housing, education, healthcare, and human services. Since 2004, SECU Foundation has made a collective financial commitment of over $300 million for initiatives to benefit North Carolinians statewide.

    Contact: Jama Campbell, Executive Director, secufoundation@ncsecu.org

    The MIL Network –

    February 28, 2025
  • MIL-OSI: American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 27, 2025
    The information in this press release should be read in conjunction with an earnings presentation that is available on the Company’s website at investors.amcoastal.com/Presentations.

    ST. PETERSBURG, Fla., Feb. 27, 2025 (GLOBE NEWSWIRE) — American Coastal Insurance Corporation (Nasdaq: ACIC) (“ACIC” or the “Company”), a property and casualty insurance holding company, today reported its financial results for the fourth quarter and year ended December 31, 2024.

           
    ($ in thousands, except for per share data) Three Months Ended   Year Ended
    December 31,   December 31,
        2024       2023     Change     2024       2023     Change
    Gross premiums written $ 140,739     $ 128,260     9.7 %   $ 647,805     $ 635,709     1.9 %
    Gross premiums earned   162,710       159,094     2.3       638,608       604,683     5.6  
    Net premiums earned   73,492       49,141     49.6       273,990       262,060     4.6  
    Total revenue   79,267       51,251     54.7       296,657       264,400     12.2  
    Income from continuing operations, net of tax   5,868       17,380     (66.2 )     76,319       85,204     (10.4 )
    Income (loss) from discontinued operations, net of tax   (922 )     (3,096 )   70.2       (601 )     224,707     NM
    Consolidated net income $ 4,946     $ 14,284     (65.4 )%   $ 75,718     $ 309,911     NM
                           
    Net income available to ACIC stockholders per diluted share                      
    Continuing Operations $ 0.12     $ 0.38     (68.4 )%   $ 1.55     $ 1.92     (19.3 )%
    Discontinued Operations $ (0.02 )   $ (0.07 )   71.4       (0.01 )     5.06     NM
    Total $ 0.10     $ 0.31     (67.7 )%   $ 1.54     $ 6.98     NM
                           
    Reconciliation of net income to core income:                      
    Plus: Non-cash amortization of intangible assets and goodwill impairment $ 608     $ 811     (25.0 )%   $ 2,639     $ 3,247     (18.7 )%
    Less: Income (loss) from discontinued operations, net of tax   (922 )     (3,096 )   70.2       (601 )     224,707     NM
    Less: Net realized losses on investment portfolio   —       (2 )   NM     (124 )     (6,789 )   98.2  
    Less: Unrealized gains on equity securities   454       22     NM     1,996       814     NM
    Less: Net tax impact (1)   32       166     (80.7 )%     161       1,937     (91.7 )
    Core income(2)   5,990       18,005     (66.7 )     76,925       92,489     (16.8 )
    Core income per diluted share (2) $ 0.12     $ 0.39     (69.2 )%   $ 1.56     $ 2.08     (25.0 )%
                           
    Book value per share             $ 4.89     $ 3.61     35.5 %
    NM = Not Meaningful
    (1) In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate.
    (2) Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles (“GAAP”), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section, below.
       

    Comments from Chief Executive Officer, B. Bradford Martz:

    “American Coastal, our insurance subsidiary, remains a leader in the Florida commercial residential market. The Company remained profitable in the 2024 fourth quarter with a combined ratio of 91.9%, despite the devastating impact and full catastrophe retention from Hurricane Milton, leading to a 67.5% combined ratio for the full year. This underscores the strength of our reinsurance strategy in safeguarding our balance sheet while mitigating the financial impact of catastrophic events.

    Furthermore, American Coastal’s written premium increased 9.7% from the prior year fourth quarter and renewal retention remained steady. In December, we announced the launch of our apartment program, and, to date, we have received hundreds of high-quality submissions from our six broker partners, affirming the strong demand for American Coastal’s products.”

    Return on Equity and Core Return on Equity

    The calculations of the Company’s return on equity and core return on equity are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
        2024       2023       2024       2023  
    Income from continuing operations, net of tax $ 5,868     $ 17,380     $ 76,319     $ 85,204  
    Return on equity based on GAAP income from continuing operations, net of tax (1)   10.4 %     98.6 %     33.7 %     120.8 %
                   
    Income (loss) from discontinued operations, net of tax $ (922 )   $ (3,096 )   $ (601 )   $ 224,707  
    Return on equity based on GAAP income (loss) from discontinued operations, net of tax (1)   (1.6 )%     (17.6 )%     (0.3 )%   NM
                   
    Consolidated net income $ 4,946     $ 14,284     $ 75,718     $ 309,911  
    Return on equity based on GAAP net income (1)   8.7 %     81.0 %     33.5 %   NM
                   
    Core income $ 5,990     $ 18,005     $ 76,925     $ 92,489  
    Core return on equity (1)(2)   10.6 %     102.1 %     34.0 %     131.1 %
    (1) Return on equity for the three months and years ended December 31, 2024 and 2023 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders’ equity for the trailing twelve months.
    (2) Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.
       

    Combined Ratio and Underlying Ratio

    The calculations of the Company’s combined ratio and underlying combined ratio on a consolidated basis and attributable to Interboro Insurance Company (“IIC”), now captured within discontinued operations, are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
      2024     2023     Change   2024     2023     Change
    Consolidated                      
    Loss ratio, net(1) 40.5 %   13.7 %   26.8 pts   25.3 %   17.8 %   7.5 pts
    Expense ratio, net(2) 51.4 %   46.2 %   5.2 pts   42.2 %   43.1 %   (0.9) pts
    Combined ratio (CR)(3) 91.9 %   59.9 %   32.0 pts   67.5 %   60.9 %   6.6 pts
    Effect of current year catastrophe losses on CR 27.8 %   (0.8 )%   28.6 pts   9.3 %   4.9 %   4.4 pts
    Effect of prior year favorable development on CR (1.8 )%   (3.0 )%   1.2 pts   (1.4 )%   (4.9 )%   3.5 pts
    Underlying combined ratio(4) 65.9 %   63.7 %   2.2 pts   59.6 %   60.9 %   (1.3) pts
                           
    IIC                      
    Loss ratio, net(1) 73.4 %   78.5 %   (5.1) pts   71.2 %   81.6 %   (10.4) pts
    Expense ratio, net(2) 47.1 %   39.0 %   8.1 pts   43.4 %   50.8 %   (7.4) pts
    Combined ratio (CR)(3) 120.5 %   117.5 %   3.0 pts   114.6 %   132.4 %   (17.8) pts
    Effect of current year catastrophe losses on CR 0.8 %   10.6 %   (9.8) pts   4.1 %   12.6 %   (8.5) pts
    Effect of prior year favorable development on CR (0.7 )%   13.2 %   (13.9) pts   (3.6 )%   2.0 %   (5.6) pts
    Underlying combined ratio(4) 120.4 %   93.7 %   26.7 pts   114.1 %   117.8 %   (3.7) pts
    (1) Loss ratio, net is calculated as losses and loss adjustment expenses (“LAE”), net of losses ceded to reinsurers, relative to net premiums earned.
    (2) Expense ratio, net is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.
    (3) Combined ratio is the sum of the loss ratio, net and expense ratio, net.
    (4) Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.
       

    Combined Ratio Analysis

    The calculations of the Company’s loss ratios and underlying loss ratios are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
      2024       2023     Change     2024       2023     Change
    Loss and LAE $ 29,794     $ 6,710     $ 23,084   $ 69,319     $ 46,678     $ 22,641
    % of Gross earned premiums   18.3 %     4.2 %   14.1 pts     10.9 %     7.7 %   3.2 pts
    % of Net earned premiums   40.5 %     13.7 %   26.8 pts     25.3 %     17.8 %   7.5 pts
    Less:                      
    Current year catastrophe losses $ 20,405     $ (406 )   $ 20,811   $ 25,561     $ 12,783     $ 12,778
    Prior year reserve favorable development   (1,325 )     (1,482 )     157     (3,704 )     (12,694 )     8,990
    Underlying loss and LAE (1) $ 10,714     $ 8,598     $ 2,116   $ 47,462     $ 46,589     $ 873
    % of Gross earned premiums   6.6 %     5.4 %   1.2 pts     7.4 %     7.7 %   (0.3) pts
    % of Net earned premiums   14.5 %     17.5 %   (3.0) pts     17.3 %     17.8 %   (0.5) pts
    (1) Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section, below.
       

    The calculations of the Company’s expense ratios are shown below.

           
    ($ in thousands) Three Months Ended   Year Ended
    December 31,   December 31,
      2024       2023     Change     2024       2023     Change
    Policy acquisition costs $ 26,514     $ 13,138     $ 13,376   $ 70,990     $ 75,436     $ (4,446 )
    General and administrative   11,277       9,561       1,716     44,756       37,559       7,197  
    Total Operating Expenses $ 37,791     $ 22,699     $ 15,092   $ 115,746     $ 112,995     $ 2,751  
    % of Gross earned premiums   23.2 %     14.3 %   8.9 pts     18.1 %     18.7 %   (0.6) pts
    % of Net earned premiums   51.4 %     46.2 %   5.2 pts     42.2 %     43.1 %   (0.9) pts
                                           

    Quarterly Financial Results

    Net income for the fourth quarter of 2024 was $4.9 million, or $0.10 per diluted share, compared to $14.3 million, or $0.31 per diluted share, for the fourth quarter of 2023. Of this income, $5.9 million is attributable to continuing operations for the three months ended December 31, 2024, a decrease of $11.5 million from net income of $17.4 million for the same period in 2023. Quarter-over-quarter revenues increased, driven by a decrease in ceded premiums earned, and an increase in gross premiums earned and net investment income. This was offset by increased expenses quarter-over-quarter, driven by an increase in loss and LAE and policy acquisition costs, as described below. The Company’s loss from discontinued operations, also contributed to this change in net income, with the loss decreasing $2.2 million quarter-over-quarter, as the deconsolidation of the Company’s former subsidiary, United Property and Casualty Insurance Company (“UPC”), is not impacting the Company in 2024.

    The Company’s total gross written premium increased $12.5 million, or 9.7%, to $140.7 million for the fourth quarter of 2024, from $128.3 million for the fourth quarter of 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.

               
    ($ in thousands) Three Months Ended December 31,        
        2024     2023   Change $   Change %
    Direct Written and Assumed Premium by State              
    Florida $ 135,661   $ 128,260   $ 7,401   5.8 %
    New York   —     —     —   —  
    Total direct written premium by state   135,661     128,260     7,401   5.8  
    Assumed premium   5,078     —     5,078   100.0  
    Total gross written premium by state $ 140,739   $ 128,260   $ 12,479   9.7 %
                   
    Gross Written Premium by Line of Business              
    Commercial property $ 140,739   $ 128,260   $ 12,479   9.7 %
    Personal property   —     —     —   —  
    Total gross written premium by line of business $ 140,739   $ 128,260   $ 12,479   9.7 %
                           

    Loss and LAE increased by $23.1 million, or 344.8%, to $29.8 million for the fourth quarter of 2024, from $6.7 million for the fourth quarter of 2023. Loss and LAE expense as a percentage of net earned premiums increased 26.8 points to 40.5% for the fourth quarter of 2024, compared to 13.7% for the fourth quarter of 2023. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the fourth quarter of 2024 would have been 6.6%, a 1.2 point increase from the fourth quarter of 2023.

    Policy acquisition costs increased by $13.4 million, or 102.3%, to $26.5 million for the fourth quarter of 2024, from $13.1 million for the fourth quarter of 2023, primarily due to a decrease in reinsurance commission income attributable to the change in our quota share reinsurance cession rate from 40% to 20% effective June 1, 2024. In addition, our management fees attributable to our commercial property premiums increased as the result of additional premiums written quarter-over-quarter.

    General and administrative expenses increased by $1.7 million, or 17.7%, to $11.3 million for the fourth quarter of 2024, from $9.6 million for the fourth quarter of 2023, driven by increased overhead costs, such as amortization of capitalized software, equipment costs and salaries, and external spend for audit, actuarial and legal services.

    IIC Quarterly Results Highlights

    Net loss attributable to IIC totaled $633 thousand for the fourth quarter of 2024 compared to a net loss of $274 thousand for the fourth quarter of 2023. Drivers of the quarter-over-quarter increase included: an increase in general and administrative expenses of $406 thousand as the result of increased costs such as software licensing costs and salary expenses, offset by increased revenues of $355 thousand, which were driven by an increase in gross earned premiums of $1.4 million, offset by increased ceded premiums earned of $1.0 million.

    Annual Financial Results

    Net income attributable to the Company for the year ended December 31, 2024 was $75.7 million, or $1.54 per diluted share, compared to net income of $309.9 million, or $6.98 per diluted share, for the year ended December 31, 2023. Drivers of net income during 2024 included increased gross premiums earned partially offset by increased ceded premiums earned. Net investment income also increased, driving additional total revenues year-over-year. This increase in revenue was offset by increased expenses year-over-year, driven by increases in losses and LAE incurred and general and administrative expenses, partially offset by decreased policy acquisition costs. During 2024, the Company experienced a net loss attributable to discontinued operations of $601 thousand, compared to $224.7 million of net income attributable to discontinued operations during 2023, as the deconsolidation of the Company’s former subsidiary, UPC, is not impacting the Company in 2024.

    The Company’s total gross written premium increased by $12.1 million, or 1.9%, to $647.8 million for the year ended December 31, 2024, from $635.7 million for the year ended December 31, 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.

               
    ($ in thousands) Year Ended December 31,        
        2024     2023     Change $   Change %
    Direct Written and Assumed Premium by State (1)              
    Florida $ 642,727   $ 635,602     $ 7,125   1.1 %
    New York   —     —       —   —  
    Texas   —     (9 )     9   (100.0 )
    Total direct written premium by state   642,727     635,593       7,134   1.1  
    Assumed premium (2)   5,078     116       4,962   4,277.6  
    Total gross written premium by state $ 647,805   $ 635,709     $ 12,096   1.9 %
                   
    Gross Written Premium by Line of Business              
    Commercial property $ 647,805   $ 635,709     $ 12,096   1.9 %
    Personal property   —     —       —   —  
    Total gross written premium by line of business $ 647,805   $ 635,709     $ 12,096   1.9 %
    (1) The Company ceased writing in Texas as of May 31, 2022.
    (2) Assumed premium written for 2023 and 2024 primarily included commercial property business assumed from unaffiliated insurers.
       

    Loss and LAE increased by $22.6 million, or 48.4%, to $69.3 million for the year ended December 31, 2024, from $46.7 million for the year ended December 31, 2023. Loss and LAE expense as a percentage of net earned premiums increased 7.5 points to 25.3% for the year ended December 31, 2024, compared to 17.8% for the year ended December 31, 2023. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the year ended December 31, 2024, would have been 7.4%, a decrease of 0.3 points from 7.7% for the year ended December 31, 2023.

    Policy acquisition costs decreased by $4.4 million, or 5.9%, to $71.0 million for the year ended December 31, 2024, from $75.4 million for the year ended December 31, 2023, primarily due to an increase in ceding commission income as the result of the Company including quota share reinsurance coverage in their core catastrophe reinsurance programs beginning June 1, 2023. This resulted in ceding commission income for the full year ended December 31, 2024, compared to only seven months of the year ended December 31, 2023. This was partially offset by increased external management fees and premium taxes related to the Company’s increased commercial lines gross written premium.

    General and administrative expenses increased by $7.2 million, or 19.1%, to $44.8 million for the year ended December 31, 2024, from $37.6 million for the year ended December 31, 2023, driven by increased overhead costs, such as amortization of capitalized software and salaries, as well as external spend for audit, actuarial and legal services.

    IIC Annual Results Highlights

    Net loss attributable to IIC totaled $1.3 million for the year ended December 31, 2024, compared to a net loss of $3.0 million for the year ended December 31, 2023. Drivers of the year-over-year decreased loss included: an increase in net premiums earned of $6.5 million, driven by an increase in gross premiums earned of $5.1 million, while ceded premiums earned decreased $1.4 million. This was partially offset by increased expenses of $3.9 million, driven by an increase in loss and LAE incurred of $2.6 million, which was driven by current year non-catastrophe losses, and an increase in general and administrative expenses of $853 thousand as the result of increased costs, such as software licensing costs and salary expenses. IIC’s policy acquisition costs also increased $426 thousand, driven by the increase in premiums described above.

    Reinsurance Costs as a Percentage of Gross Earned Premium

    Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 were as follows:

           
      2024   2023
    Non-at-Risk (0.3) %   (0.2) %
    Quota Share (16.2) %   (31.4) %
    All Other (38.3) %   (37.4) %
    Total Ceding Ratio (54.8) %   (69.0) %
           

    Ceded premiums earned related to the Company’s catastrophe excess of loss contracts remained relatively flat quarter-over-quarter. The Company’s utilization of quota share reinsurance coverage resulted in less excess of loss coverage needed for the 2023-2024 catastrophe year; however, the cost savings associated with this reduction in necessary coverage were offset by rate increases on catastrophe excess of loss coverage for the same period. This utilization of quota share reinsurance coverage increased the Company’s ceding ratio overall during 2023. Effective June 1, 2024, the Company decreased its quota share reinsurance coverage from 40% to 20%, lowering the Company’s quota share ceding ratio and overall ceding ratio.

    Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 for IIC, captured within discontinued operations, were as follows:

       
      IIC
      2024   2023
    Non-at-Risk (2.4) %   (2.7) %
    Quota Share — %   — %
    All Other (28.4) %   (20.9) %
    Total Ceding Ratio (30.8) %   (23.6) %
           

    Investment Portfolio Highlights

    The Company’s cash, restricted cash and investment holdings increased from $311.9 million at December 31, 2023, to $540.8 million at December 31, 2024. This increase is driven by positive cash flows from operations. The Company’s cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and investment grade money market instruments. Fixed maturities represented approximately 82.3% of total investments at December 31, 2024, compared to 89.4% of total investments at December 31, 2023. The Company’s fixed maturity investments had a modified duration of 2.2 years at December 31, 2024, compared to 3.4 years at December 31, 2023.

    Book Value Analysis

    Book value per common share increased 35.5% from $3.61 at December 31, 2023, to $4.89 at December 31, 2024. Underlying book value per common share increased 31.2% from $3.97 at December 31, 2023, to $5.21 at December 31, 2024. An increase in the Company’s retained earnings as a result of net income for the year ended December 31, 2024, drove the increase in the Company’s book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income (“AOCI”), caused by capital market conditions, increases the Company’s book value per common share at December 31, 2024.

           
    ($ in thousands, except for share and per share data) December 31, 2024    December 31, 2023
     
    Book Value per Share      
    Numerator:      
    Common stockholders’ equity $ 235,660     $ 168,765  
    Denominator:      
    Total Shares Outstanding   48,204,962       46,777,006  
    Book Value Per Common Share $ 4.89     $ 3.61  
           
    Book Value per Share, Excluding the Impact of AOCI      
    Numerator:      
    Common stockholders’ equity $ 235,660     $ 168,765  
    Less: Accumulated other comprehensive loss   (15,666 )     (17,137 )
    Stockholders’ Equity, excluding AOCI $ 251,326     $ 185,902  
    Denominator:      
    Total Shares Outstanding   48,204,962       46,777,006  
    Underlying Book Value Per Common Share(1) $ 5.21     $ 3.97  
    (1) Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.
       

    Conference Call Details

    About American Coastal Insurance Corporation

    American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, “Exceptional” from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.

    Contact Information:
    Alexander Baty
    Vice President, Finance & Investor Relations, American Coastal Insurance Corp.
    investorrelations@amcoastal.com
    (727) 425-8076

    Karin Daly
    Investor Relations, Vice President, The Equity Group
    kdaly@equityny.com
    (212) 836-9623

    Definitions of Non-GAAP Measures

    The Company believes that investors’ understanding of ACIC’s performance is enhanced by the Company’s disclosure of the following non-GAAP measures. The Company’s methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

    Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company’s investment portfolio, net of tax, and unrealized gains (losses) on the Company’s equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company’s operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company’s business.

    Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company’s equity security investments and net realized gains or losses on the Company’s investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company’s underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company’s business.

    Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company’s business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company’s loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company’s business.

    Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company’s loss trends that may be impacted by current year catastrophe losses and prior year development on the Company’s reserves. As discussed previously, these two items can have a significant impact on the Company’s loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company’s business.

    Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders’ equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company’s business.

    Discontinued Operations

    On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC (“Forza”) in which ACIC will sell and Forza will acquire 100% of the issued and outstanding stock of the Company’s subsidiary, IIC. Forza’s application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025. The Company and Forza have agreed to close on April 1, 2025.

    In addition, on February 27, 2023, the Florida Department of Financial Services was appointed as receiver of the Company’s former subsidiary, UPC. As such, prior year financial results and Consolidated Balance Sheet components have been reclassified to reflect continuing and discontinued operations appropriately.

    Forward-Looking Statements

    Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” “endeavor,” “project,” “believe,” “plan,” “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company’s filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.

           
    Consolidated Statements of Comprehensive Income
    In thousands, except share and per share amounts
           
      Three Months Ended   Year Ended
      December 31,   December 31,
        2024       2023       2024       2023  
    REVENUE:              
    Gross premiums written $ 140,739     $ 128,260     $ 647,805     $ 635,709  
    Change in gross unearned premiums   21,971       30,834       (9,197 )     (31,026 )
    Gross premiums earned   162,710       159,094       638,608       604,683  
    Ceded premiums earned   (89,218 )     (109,953 )     (364,618 )     (342,623 )
    Net premiums earned   73,492       49,141       273,990       262,060  
    Net investment income   5,321       2,075       20,795       8,300  
    Net realized investment losses   —       (2 )     (124 )     (6,789 )
    Net unrealized gains on equity securities   454       22       1,996       814  
    Other revenue   —       15       —       15  
    Total revenues $ 79,267     $ 51,251     $ 296,657     $ 264,400  
    EXPENSES:              
    Losses and loss adjustment expenses   29,794       6,710       69,319       46,678  
    Policy acquisition costs   26,514       13,138       70,990       75,436  
    General and administrative expenses   11,277       9,561       44,756       37,559  
    Interest expense   2,784       2,719       11,996       10,875  
    Total expenses   70,369       32,128       197,061       170,548  
    Income before other income   8,898       19,123       99,596       93,852  
    Other income (loss)   (11 )     1,071       2,063       2,228  
    Income before income taxes   8,887       20,194       101,659       96,080  
    Provision for income taxes   3,019       2,814       25,340       10,876  
    Income from continuing operations, net of tax $ 5,868     $ 17,380     $ 76,319     $ 85,204  
    Income (loss) from discontinued operations, net of tax   (922 )     (3,096 )     (601 )     224,707  
    Net income $ 4,946     $ 14,284     $ 75,718     $ 309,911  
    OTHER COMPREHENSIVE INCOME:              
    Change in net unrealized gains (losses) on investments   (4,049 )     6,696       3,355       5,998  
    Reclassification adjustment for net realized investment losses   —       2       124       6,808  
    Income tax benefit related to items of other comprehensive income   —       —       —       —  
    Total comprehensive income $ 897     $ 20,982     $ 79,197     $ 322,717  
                   
    Weighted average shares outstanding              
    Basic   48,095,488       44,713,148       47,831,412       43,596,432  
    Diluted   49,589,458       45,712,715       49,362,985       44,388,804  
                   
    Earnings available to ACIC common stockholders per share              
    Basic              
    Continuing operations $ 0.12     $ 0.39     $ 1.60     $ 1.96  
    Discontinued operations   (0.02 )     (0.07 )     (0.01 )     5.15  
    Total $ 0.10     $ 0.32     $ 1.59     $ 7.11  
    Diluted              
    Continuing operations $ 0.12     $ 0.38     $ 1.55     $ 1.92  
    Discontinued operations   (0.02 )     (0.07 )     (0.01 )     5.06  
    Total $ 0.10     $ 0.31     $ 1.54     $ 6.98  
                   
    Dividends declared per share $ 0.50     $ —     $ 0.50     $ —  
                                   
                                   
           
    Consolidated Balance Sheets
    In thousands, except share amounts
           
      December 31, 2024   December 31, 2023
    ASSETS      
    Investments, at fair value:      
    Fixed maturities, available-for-sale $ 281,001     $ 138,387  
    Equity securities   36,794       —  
    Other investments   23,623       16,487  
    Total investments $ 341,418     $ 154,874  
    Cash and cash equivalents   137,036       138,930  
    Restricted cash   62,357       18,070  
    Accrued investment income   2,964       1,767  
    Property and equipment, net   5,736       3,658  
    Premiums receivable, net   46,564       45,924  
    Reinsurance recoverable on paid and unpaid losses   263,419       340,820  
    Ceded unearned premiums   160,893       155,301  
    Goodwill   59,476       59,476  
    Deferred policy acquisition costs   40,282       21,149  
    Intangible assets, net   5,908       8,548  
    Other assets   16,816       36,718  
    Assets held for sale   73,243       77,143  
    Total Assets $ 1,216,112     $ 1,062,378  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Liabilities:      
    Unpaid losses and loss adjustment expenses $ 322,087     $ 347,738  
    Unearned premiums   285,354       276,157  
    Reinsurance payable on premiums   83,130       —  
    Payments outstanding   699       706  
    Accounts payable and accrued expenses   86,140       74,783  
    Operating lease liability   3,323       739  
    Other liabilities   757       672  
    Notes payable, net   149,020       148,688  
    Liabilities held for sale   49,942       44,130  
    Total Liabilities $ 980,452     $ 893,613  
    Commitments and contingencies      
    Stockholders’ Equity:      
    Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding   —       —  
    Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,417,045 and 46,989,089 issued, respectively; 48,204,962 and 46,777,006 outstanding, respectively   5       5  
    Additional paid-in capital   436,524       423,717  
    Treasury shares, at cost; 212,083 shares   (431 )     (431 )
    Accumulated other comprehensive loss   (15,666 )     (17,137 )
    Retained earnings (deficit)   (184,772 )     (237,389 )
    Total Stockholders’ Equity $ 235,660     $ 168,765  
    Total Liabilities and Stockholders’ Equity $ 1,216,112     $ 1,062,378  

    The MIL Network –

    February 28, 2025
  • MIL-OSI USA: VIDEO: Capito Votes to Overturn Biden–Era Natural Gas Tax

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito
    To watch Chairman Capito’s floor remarks, click here.
    WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Chairman of the Senate Environment and Public Works (EPW) Committee, voted to overturn the Biden Environmental Protection Agency’s (EPA) Waste Emissions Charge (WEC) regulation as part of the Methane Emissions Reduction Program (MERP) under the Democrats’ Inflation Reduction Act. This rule enabled the collection of the Democrats’ natural gas tax, which would hurt American energy generation, damage our economy, and be detrimental to energy jobs across our country. The Senate approved the Congressional Review Act (CRA) joint resolution of disapproval, which was introduced by U.S. Senator John Hoeven (R-N.D.) and co-sponsored by Chairman Capito, by a vote of 52-47.
    Prior to the final vote on the CRA, Chairman Capito delivered remarks on the Senate floor outlining the consequences of the natural gas tax and the importance of natural gas to American energy dominance, and urged her colleagues to support the measure.
    Below are the floor remarks of Chairman Shelley Moore Capito (R-W.Va.) as delivered.
    “I rise today in support of my friend from North Dakota, Senator Hoeven’s, Congressional Review Act resolution to block the implementation of the Biden administration’s Waste Emissions Charge, otherwise known as the natural gas tax.
    “Since the day this regulation was finalized last November, I pledged that I would work with President Trump and my colleagues in the Congress to repeal this misguided, anti-energy tax. Today in the Senate, that is exactly what we’re working to do.
    “We must recognize that we are in a critical moment for American energy. The North American Energy Reliability Corporation has found that over the next 10 years, due to a rise in energy consumption and the early retirement of our existing fossil fuel generation, our country could face major electric generation and reliability concerns.
    “We must take action now to ensure that our future demand is met, that the lights remain on, our homes remain warm, and our economy keeps moving for Americans all across this country. We can do this by continuing to invest in natural gas.
    “Over 60% of American homes, every day, heat their homes, their water, or their food with natural gas. Natural gas is responsible for over 40% of electricity generation, and fuels more than half of our industrial sector’s process heat. While the natural gas tax fails to recognize this reality, let’s look at what is true.
    “Fracking and shale gas have both revolutionized and transformed American energy, leading to lower prices, job growth, and increased American energy security. According to the Energy Information Administration, the rapid expansion of natural gas-fired power plants, in this country, has decreased the power sector’s carbon dioxide emissions by 35% over the last 25 years.
    “Natural gas has the potential to further reduce American greenhouse gas emissions if we continue to increase production.
    “Natural gas is affordable, reliable, and a clean source of energy, vital to our country and our economy. We should be expanding natural gas production, not restricting it. Instead, the natural gas tax will constrain American natural gas production, leading to increased energy prices and providing a boost to the production of natural gas in Russia.
    “Simply put, repealing the natural gas tax is a win for our economy, a win for our natural security, and a win for our environment.
    “As part of establishing this tax, the Democrats’ so-called ‘Inflation Reduction Act’ ordered the EPA to revise its subpart W requirements in order to facilitate the reporting and calculation of the tax.
    “The EPA subpart W revisions blatantly disregard and overstep even the partisan mandates of the IRA, and would excessively increase the tax burden on American energy under this natural gas tax. The revised emission factors with its subpart W reporting requirements make broad assumptions about oil and gas operations and technology that will lead to inaccurate reporting for many owners and operators.
    “The rule would not only radically expand the scope of emissions required to be reported by each facility under the greenhouse gas reporting program, but it also excessively expands the number of facilities that are covered by subpart W, and consequently, responsible to pay the natural gas tax.
    “Due to this uninformed and artificial overestimate of U.S. methane emissions, some smaller operators, who were once below the waste emissions threshold, are now at risk of seeing their reported methane emissions inflated, and owe large sums under the natural gas tax. If not repealed, this rule will arbitrarily increase the cost and burden of reporting under subpart W, motivated by the Democrats’ interest in growing the revenues generated by their natural gas tax.
    “This will make it even more difficult and expensive to produce, transport, and consume American natural gas, and in turn, will hurt both American families who rely on the energy, and the environment of the communities that we live.
    “It’s important that we note that our efforts today works in tandem with this Chamber’s recently passed budget resolution. As Chairman of the Environment and Public Works Committee, I have long intended to stop the natural gas tax, and we will continue to pursue this through the reconciliation process.
    “Today’s vote on the CRA provides all senators the opportunity to put our vote on record after witnessing the Biden EPA’s bait and switch on the implementation of this misguided policy.
    “I encourage my colleagues to support the CRA that is central to our mission of American energy dominance, and rejects this tax that will bolster our adversaries, increase energy costs on American families, and put our energy future at risk.”

    MIL OSI USA News –

    February 28, 2025
  • MIL-OSI Canada: B.C. will strengthen biofuel industry with Canadian-content requirements

    Source: Government of Canada regional news

    The Province is taking action to strengthen British Columbia’s energy resilience and support local biofuel producers, ensuring cleaner transportation fuels and greater energy security for people in B.C.

    “British Columbians deserve a reliable, sustainable and Canadian fuel supply,” said Adrian Dix, Minister of Energy and Climate Solutions. “By increasing the Canadian biofuel content in our transportation fuels, we will support local producers, protect jobs and reduce our dependence on foreign energy. This action reflects our commitment to cleaner energy, economic growth and a resilient future for British Columbians.”

    B.C. and Canadian biofuel producers have long felt the impact of the competitive advantage American producers have over Canadian producers because of U.S. subsidies, which have increased under the U.S. Inflation Reduction Act.

    To support B.C. and Canadian biofuel producers, protect local jobs throughout the supply chain and strengthen British Columbia’s energy security, the Province is making key amendments to regulations under the Low Carbon Fuels Act that prioritize the inclusion of Canadian biofuels in B.C.’s transportation fuels. This action will stabilize the biofuel market and support B.C. companies such as Tidewater Renewables in Prince George, Parkland in Burnaby and Consolidated Biofuels in Delta.

    “We welcome the Government of B.C.’s changes to the Low Carbon Fuels Act and the commitment to strengthen the Canadian biofuel sector,” said Jeremy Baines, president and CEO, Tidewater Renewables. “This is a good first step in levelling the playing field with imported biofuels that take advantage of overlapping foreign and Canadian policies, and moving toward an economically viable Canadian renewable fuel industry. Tidewater is committed to being a leader in the energy transition, continuing to develop made-in-B.C. energy solutions, creating good-paying jobs in British Columbia and continuing to supply low-carbon fuels, helping British Columbia and Canada meet emission-reduction targets.”

    Effective Jan. 1, 2026, the minimum 5% renewable-fuel requirement for gasoline must be met with eligible renewable fuels produced in Canada. The renewable-fuel requirement for diesel is 4% and will immediately be increased to 8%. Beginning April 1, 2025, the renewable content of diesel fuel must be produced in Canada.

    The Province has been working closely with B.C. biofuel producers and suppliers to develop an approach that supports the entire industry and limits price impacts. This aligns with the Province’s commitment to sustainability and competitiveness, balancing environmental goals with economic development, signalling B.C.’s leadership in advancing a cleaner and more resilient energy future.

    Quotes:

    Dan Treleaven, chief executive officer, Consolidated Biofuels Ltd. –

    “This news is welcome support for local homegrown biofuel producers. Securing and growing local production reduces reliance on imports, while maintaining one of the most progressive carbon-reduction programs in Canada.”

    Mark Zacharias, executive director, Clean Energy Canada –

    “We are pleased to see today’s amendments to the Low Carbon Fuels Regulation. These changes will provide certainty to B.C. and Canadian biofuel producers, while connecting the Canadian biofuel supply chain and supporting the province’s clean-energy economy. In the face of potential U.S. tariffs, these changes will create jobs here in B.C., while doing our part for the climate.”

    Learn More:

    British Columbia’s Low Carbon Fuel Standard:
    https://www2.gov.bc.ca/gov/content/industry/electricity-alternative-energy/transportation-energies/renewable-low-carbon-fuels

    A backgrounder follows.

    MIL OSI Canada News –

    February 28, 2025
  • MIL-OSI USA: Ricketts, Flood Introduce CRA Legislation to Overturn CFPB’s Regulatory Overreach of Consumer Payment Companies

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)
    WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE) and U.S. Representative Mike Flood (R-NE-01) introduced a bicameral Congressional Review Act resolution to overturn the Consumer Financial Protection Bureau (CFPB)’s latest overreach in the digital consumer payment market. The legislation would nullify the CFPB’s burdensome “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications” rule, which took effect on January 9, 2025.
    “Following their election loss, the Biden-Harris CFPB rushed an eleventh-hour rule to attack non-bank digital consumer payment applications,” said Senator Ricketts. “This one-size-fits-all solution in search of a problem unnecessarily expands the CFPB’s authority. Our legislation eliminates barriers to innovation, cuts red tape, and supports our job-creators. Thank you, Congressman Flood, for leading this common-sense effort in the House. I urge my colleagues to consider this legislation without delay.”
    “Over the last four years, progressive activists sought to dramatically expand the regulatory authority of the Consumer Financial Protection Bureau,” said Representative Flood. “One of the tools they used to achieve their goal was the Larger Participants Rule, which has attempted to leverage the agency’s examination authority to regulate non-bank consumer payments firms. Rolling back this regulation is critical to ensuring that the CFPB doesn’t become a barrier to innovation for job creators across America. Thank you to my colleagues in the House who are joining this effort and to Senator Ricketts for leading on this bicameral effort as well.”
    “Technology helps Americans of all backgrounds manage their financial lives. The CFPB’s rule doesn’t benefit consumers or the market, but it would stifle fintech innovation,” said Carl Holshouser, Executive Vice President of TechNet. “The final rule’s one-size-fits-all approach fails to follow applicable law, does not identify any specific consumer harm, and largely ignores stakeholder comments. Instead, the Bureau casts a wide net to turn itself into a general technology regulator instead of a financial one. TechNet is thankful to Representative Flood and Senator Ricketts for introducing this important resolution and looks forward to Congress rescinding the CFPB’s rule.”
    “The final rule was deeply flawed, failed to define a market or identify specific risks to consumers, and conflated diverse uses and products into a one-size-fits-all approach,” said Penny Lee, President and CEO of the Financial Technology Association. “This was an overreach by the CFPB as payment companies are well-regulated at the state and federal levels. We applaud Senator Pete Ricketts and Congressman Mike Flood in leading the Congressional Review Act process.”
    Bill text can be found here.
    BACKGROUND
    On November 21, 2024, the CFPB finalized a rule entitled “Defining Larger Participants of a Market for a General-Use Digital Consumer Payment Applications”— one of the Biden Administration’s many midnight rulemakings at the end of the year. Effective Jan. 9, 2025, the rule stretches CFPB’s powers to establish new supervision and examination authority over nonbank entities identified as “larger participants” in the general-use digital consumer payment applications market. These entities include payment apps, digital wallets, peer-to-peer payment apps, and other entities. “Larger participants” are entities that facilitate at least 50 million consumer payment transactions annually. Payment apps like Paypal or Venmo are examples.
    Many payment companies are already regulated at the federal and state level. Consumers are having positive experiences in engaging with these services. Despite minimal consumer complaints about payment services—accounting for only 1% of the CFPB’s 1.3 million complaints in 2023—the CFPB chose to layer additional oversight on an already well-regulated industry.
    This one-size-fits-all solution in search of a problem expands CFPB’s authority without properly identifying a specific market it seeks to supervise or the risks within a specific market that pose harm to consumers that existing regulation doesn’t already mitigate. It will layer overreaching, duplicative regulation that could stifle innovation and lead to fewer services and increased costs.
    Further, the cost-benefit analysis supporting the rule is insufficient, unrealistic, and notably underestimates a CFPB exam to cost just $25,001.

    MIL OSI USA News –

    February 28, 2025
  • MIL-OSI Canada: Federal government invests in shoreline adaptation and restoration for the Tsleil-Waututh Nation

    Source: Government of Canada regional news

    From Housing, Infrastructure and Communities Canada:
    English: https://www.canada.ca/en/housing-infrastructure-communities/news/2025/02/federal-government-invests-in-shoreline-adaptation-and-restoration-for-the-tsleil-waututh-nation.html  
    French: https://www.canada.ca/fr/logement-infrastructures-collectivites/nouvelles/2025/02/le-gouvernement-federal-investit-dans-ladaptation-et-la-restauration-des-berges-de-la-nation-des-tsleil-waututh.html

    Erosion and flood protection improvements will help preserve the səlilwətaɬ (Tsleil-Waututh Nation) shores after a joint investment of more than $10.1 million from the federal government and the Nation.

    This project includes beach replenishment, which will involve concept planning and engineering, site preparation, marine riparian shoreline planting, and the installation of intertidal adaptation features.

    These improvements will protect the shoreline while promoting biodiversity, restoring habitat health, strengthening structural capacity, and improving ecological systems. This project will also increase the Nation’s resilience to climate change, natural disasters, and extreme weather events for years to come.

    Quotes:

    “Thank you to the Tsleil-Waututh Nation for their dedication, innovation, and hard work in restoring and protecting the shoreline from flooding and rising sea levels. Our government is working alongside Indigenous partners to tackle extreme weather, adapt to climate change, and build stronger, more resilient communities. Traditional Indigenous knowledge and experience from those living on this land since time immemorial is critical in fighting climate change and protecting our shared future. That’s why federal programs like this empower local leaders to drive the changes that work best in their communities.”

    – The Honourable Terry Beech, Minister of Citizens’ Services and Member of Parliament for Burnaby North – Seymour

    “These improvements to the Tsleil-Waututh Nation lands will protect the shoreline and marine habitat now and for future generations. The impacts of climate change make it essential that we act now to address potential hazards to make our communities stronger, preserve our natural ecosystems and keep people safe.”

    – The Honourable Kelly Greene, B.C. Minister of Emergency Management and Climate Readiness

    “səlilwətaɬ (Tsleil-Waututh Nation) is grateful for Green Adaptation, Resilience and Disaster Mitigation funding to support our reserve shoreline adaptation and resilience project. This funding will enable us to complete Tsleil-Waututh Nation Reserve shoreline protection, beach nourishment, and restoration works to address longstanding concerns with coastal erosion and flooding, and to strengthen community resilience to climate change. This project is also expected to enhance marine ecological health and biodiversity, protect səlilwətaɬ community lands and cultural sites, and improve community access to the shoreline for stewardship practices and intergenerational knowledge sharing.”

    – Chief Jen Thomas, səlilwətaɬ (Tsleil-Waututh Nation)

    Quick Facts:

    • The federal government is investing $7,599,914 through the Green Infrastructure Stream of the Investing in Canada Infrastructure Program and the səlilwətaɬ (Tsleil-Waututh Nation) is contributing $2,533,305 with support from the Government of British Columbia.
    • This stream helps build greener communities by contributing to climate change preparedness, reducing greenhouse gas emissions, and supporting renewable technologies.
    • Including today’s announcement, over 150 infrastructure projects under the Green Infrastructure Stream have been announced in British Columbia, with a total federal contribution of more than $610 million and a total provincial contribution of more than $429 million.
    • Under the Investing in Canada Plan, the federal government is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.
    • Federal funding is conditional on fulfilling all requirements related to consultation with Indigenous groups and environmental assessment obligations.

    Associated Links:

    Investing in Canada: Canada’s Long-Term Infrastructure Plan:
    https://housing-infrastructure.canada.ca/plan/icp-publication-pic-eng.html

    Green Infrastructure Stream:
    https://housing-infrastructure.canada.ca/plan/icp-publication-pic-eng.html

    Housing and Infrastructure Project Map:
    https://housing-infrastructure.canada.ca/gmap-gcarte/index-eng.html

    Strengthened Climate Plan:
    https://www.canada.ca/en/services/environment/weather/climatechange/climate-plan/climate-plan-overview.html

    For more information (media only), please contact:

    MIL OSI Canada News –

    February 28, 2025
  • MIL-OSI United Nations: Diverse disaster risks in the Arab States have led to inspiring solutions

    Source: UNISDR Disaster Risk Reduction

    SRSG Kamal Kishore visited Kuwait in February 2025 for the Arab Regional Platform for Disaster Risk Reduction. In this article he reflects on the region’s challenges and successes.
     

    The Arab States region is known for its extremes: some of the world’s harshest conditions, but also the famous hospitality of its inhabitants. It is home to some of the wealthiest nations, but also many amongst the least-developed. It faces serious disaster risks – especially slow onset disasters like drought and desertification – but is also a source of innovative solutions.

    I spent the past week in Kuwait where disaster risk management policy makers and practitioners from 22 countries from the Arab States region came together for the 6th Arab Regional Platform for Disaster Risk Reduction. This multi-stakeholder forum was called to take stock of progress against the Sendai Framework for Disaster Risk Reduction and devise ways to accelerate implementation over the next five years. Much of the success can be attributed to the generosity and professionalism of the host country, the State of Kuwait. The excellent organization of the Platform was the result of a tight partnership between the Kuwait Fire Force, the League of Arab States, and UNDRR’s Regional Office for Arab States, lining up a programme that covered a wide array of important topics for the region.

    During the five intense days of deliberations, I learned many things. In a region that is beset by many challenges, disaster risk reduction issues do not always spring to mind as the most urgent. However the region has seen some of the worst disasters over the last few years – including floods in Libya (2023), Oman (2024) and UAE (2024); earthquakes in Syria and Morocco (2023); and a string of severe droughts across much of the region.

    To say that the Arab States region is highly diverse is to state the obvious. However, this diversity goes beyond the nature of disaster risk (varying hazards, exposure, and socio-economic vulnerability) to the diverse institutional approaches adopted by countries of the region to manage disaster risk. The United Arab Emirates, in particular, have shown great leadership in the region, as champions of urban resilience and hosts of the COP28 UN Climate Change Conference.

    During the Regional Platform I had so many enlightening conversations – formal and informal – and participated in numerous events and discussions. Considering all that I learned, I have the following reflections:

    The next leap

    Most of the countries in the region have established strong national level institutions for disaster risk management (these are variously named Disaster Management Agencies, or Emergency, Crisis and Disaster Management Authorities, and so on) and many have developed multi-year strategies for disaster risk management (for example, Morocco has a strategy for 2020 to 2030).

    The next leap would be to pursue more integrative work with all development sectors. Interesting initiatives are already emanating from the region. For example: UNDRR’s Private Sector Alliance for Disaster Resilient Societies (ARISE) has helped develop and apply a resilience tool to aid the real estate sector in Dubai; and Libya and Iraq are modernizing the management of their irrigation dams.

    Play closer attention to compounding risks

    For example, sand and dust storms are getting more complex – in a region that has rapidly urbanized, not only are the impacts of these hazards evolving (such as the impacts on power transmission networks and renewable energy production), but these hazards are also combining with other threats such as soil and air pollution to create even bigger impacts.

    ABCD (Align Biodiversity, Climate Change and Desertification) of Comprehensive Risk Management 

    This is a region where on-the-ground integration of the three Rio Conventions – Biodiversity, Climate Change, and Desertification – really comes alive. However, taking such a comprehensive approach requires that we align all of these interests across regional, national and sub-national institutions.

    Blend tradition and innovation

    The region is home to centuries of traditional wisdom to deal with extreme conditions and natural hazards – for example, this can be seen in how traditional housing and clothing have evolved to combat extreme heat. Traditional systems of finance such as Islamic Finance (and the notion of Zakat) provide a solid foundation for society’s financial resilience, particularly for the poorest. At the same time, many countries in the region are at the forefront of cutting-edge innovation – from advances in water management to the application of AI.

    We can draw on both traditional wisdom and modern innovation to achieve disaster risk reduction objectives.


    The energy and enthusiasm I witnessed during this past week gives me a sense of optimism that if we stay the course, this region can not only demonstrate on-the-ground disaster risk reduction results, but can also inspire action across the world.

    The Global Platform for Disaster Risk Reduction, in June this year, will give an opportunity for all of the regions to share the outcomes of the Regional Platforms, and I look forward to the contributions arising from the Arab States Regional Platform.

    MIL OSI United Nations News –

    February 28, 2025
  • MIL-OSI USA: Commodity Classic Hyperwall Schedule

    Source: NASA

    NASA Science at AMS Hyperwall Schedule, January 13-16, 2025
    Join NASA in the Exhibit Hall (Booth #401) for Hyperwall Storytelling by NASA experts. Full Hyperwall Agenda below.

    MONDAY, JANUARY 13

    6:10 – 6:25 PM
    The Golden Age of Ocean Science: How NASA’s Newest Missions Advance the Study of Oceans in our Earth System
    Dr. Karen St. Germain

    6:25 – 6:40 PM
    Integration of Vantage Points and Approaches for Earth System Science
    Dr. Jack Kaye

    6:45 – 7:00 PM
    Helio Big Year Wind-Down and a Look Ahead
    Dr. Joseph Westlake

    7:00 – 7:15 PM
    Chasing Snowstorms with Airplanes: An Overview of the IMPACTS Field Campaign
    John YorksLynn McMurdie

    7:15 – 7:30 PM
    NASA Earth Action Empowering Health and Air Quality Communities
    Dr. John Haynes

    TUESDAY, JANUARY 14

    10:00 – 10:15 AM
    Earthdata Applications
    Hannah Townley

    10:15 – 10:30 AM
    Climate Adaptation Science Investigators (CASI): Enhancing Climate Resilience at NASA
    Cynthia Rosenzweig

    10:30 – 10:45 AM
    From Orbit to Earth: Exploring the LEO Science Digest
    Jeremy Goldstein

    12:00 – 12:15 PM
    Visualizaiton of the May 10-11 ‘Gannon’ Geospace Storm
    Michael Wiltberger

    12:15 – 12:30 PM
    Explore Space Weather Through the Community Coordinated Modeling Center and OpenSpace
    Elana Resnick

    12:30 – 12:45 PM
    Satellite Needs Working Group (SNWG): US Government Agencies’ Source of NASA ESD-wide Earth Observations solutions
    Natasha Sadoff

    12:45 – 1:00 PM
    Connecting Satellite Data to the One Health Approach
    Helena Chapman

    1:00 – 1:15 PM
    A Bird’s-Eye View of Pollution in Asian Megacities
    Laura Judd

    1:15 – 1:30 PM
    Space Weather at Mars
    Gina DiBraccioJamie Favors

    3:00 – 3:15 PM
    Open Science: Creating a Culture of Innovation and Collaboration
    Lauren Perkins

    3:15 – 3:30 PM
    NASA’s Early Career Reseach Program Paving the Way
    Cynthia HallYaítza Luna-Cruz

    3:30 – 3:45 PM
    SciX: Accelerating Discovery of NASA’s Science through Open Science and Domain Integration
    Anna Kelbert

    6:15 – 6:30 PM
    Using NASA IMERG to Detect Extreme Rainfall Within Data Deserts
    Owen KelleyGeorge Huffman

    6:30 – 6:45 PM
    Satellite Remote Sensing of Aerosols Around the World
    Rob Levy

    6:45 – 7:00 PM
    The Sun, Space Weather, and You
    Jim SpannErin Lynch

    7:00 – 7:15 PM
    Eyes on the Stars: The Building of a 21st-century Solar Observatory
    Ame FoxDr. Elsayed Talaat

    7:15 – 7:30 PM
    NASA ESTO: Launchpad for Novel Earth Science Technologies
    Michael Seablom

    WEDNESDAY, JANUARY 15

    10:00 – 10:15 AM
    Parker Solar Probe Outreach and the Power of Indigenous Thought Leaders
    Troy Cline

    10:15 – 10:30 AM
    Forecasting Extreme Weather Events at Local Scales with NASA High-Resolution Models
    Gary Partyka

    10:30 – 10:45 AM
    North American Land Data Assimilation System: Informing Water and Agricultural Management Applications with NASA Modeling and Remote Sensing
    Sujay Kumar

    12:00 – 12:15 PM
    Life After Launch: A Snapshot of the First 9 Months of NASA’s PACE Mission
    Carina Poulin

    12:15 – 12:30 PM
    Space Weather and the May 2024 Geomagnetic Storm
    Antti Pulkkinen

    12:30 – 12:45 PM
    Geospace Dynamics Constellation: The Space Weather Rosetta Stone
    Dr. Katherine Garcia Gage

    12:45 – 1:00 PM
    Monitoring Sea Level Change using ICESat-2 and other NASA EO Missions
    Aimee Neeley

    1:00 – 1:15 PM
    Space Weather Center of Excellence CLEAR: All-CLEAR SEP Forecast
    Lulu Zhao

    1:15 – 1:30 PM
    Harnessing the Power of NASA Earth Observations for a Resilient Water Future
    Stephanie Granger

    3:00 – 3:15 PM
    From EARTHDATA to Action: Enabling Earth Science Data to Serve Society
    Jim O’SullivanYaitza Luna-Cruz

    3:15 – 3:30 PM
    GMAO and GEOS Related Talk TBD
    Christine Bloecker

    3:30 – 3:45 PM
    Live Heliophysics Kahoot! Quiz Bowl
    Jimmy Acevedo

    3:45 – 4:00 PM
    Parker Solar Probe
    Nour Rawaf

    THURSDAY, JANUARY 16

    10:00 – 10:15 AM
    Sounds of Space: Sonification with CDAWeb
    Alex Young

    10:30 – 10:45 AM
    Developing the Future of Microwave Sounding Data: Benefits and Opportunities
    Ed Kim

    MIL OSI USA News –

    February 28, 2025
  • MIL-OSI Security: Defense News: Military Sealift Command Continues Support to Operation Deep Freeze 2025

    Source: United States Navy

    The Military Sealift Command chartered ship MV Ocean Gladiator is conducting a cargo offload of supplies at McMurdo Station, Antarctica in support of the annual resupply mission Operation Deep Freeze (ODF) 2025.

    The second of two MSC chartered ships supporting ODF 2025, Ocean Gladiator arrived at McMurdo Station on Feb. 20, where they were met by members of Navy Cargo Handling Battalion ONE and began conducting the offload. The ship is delivering 321 pieces of cargo, consisting of containers filled with mechanical parts, vehicles, construction materials including cement pilings for a pier project, food, electronics equipment and comfort items; supplies needed to sustain the next year of operations at McMurdo Station, Antarctica.

    Following the offload, Ocean Gladiator will be loaded with 149 containers of retrograde cargo for transportation off the continent. This includes trash and recyclable materials for disposal and equipment no longer required on the station, as well as the 65-ton floating Modular Causeway System, which has been used in lieu of the ice-pier for cargo operations. Before departing McMurdo station, Ocean Gladiator will be loaded with ice core samples that will be stored on the ship in a sub-zero freezer. The ice core samples will be delivered to the United States for scientific study.
    Logistics moves are nothing new for MSC, in fact, they are almost a daily occurrence. Moving cargo in the harshest environment on Earth is a mission unto itself, as Marie Morrow, MSC’s ship liaison to the Joint Support Forces Antarctica staff can attest. On her third ODF mission, she has become something of an expert on how to move cargo while moored next to an ice-pier or a movable causeway, in sub zero temperatures and with high winds that whip over a snow-covered mountain and across an island.

    Working in Antarctica wasn’t something Morrow had even considered when she came to work at MSC’s Pacific area command, MSCPAC. In fact, a job in San Diego seemed like the perfect place to be, for someone who doesn’t like the cold.

    “I thought, San Diego, Southern California, that is exactly what I’m looking for,” said Morrow. “Then I got assigned to go to Antarctica. It wasn’t something I was looking for, or had even thought about to be honest, but, I really enjoy this mission. It is an experience that I share with only a very few people.”

    Few world travelers ever get the coveted passport stamp for all seven continents. Access to Antarctica is strictly controlled. As Morrow explained, the journey to the southern most part of the planet isn’t an easy, or short commute. Morrow’s journey began in San Diego, with a flight to San Francisco, followed by an 14-hour flight to New Zealand, and then an 8-hour flight on a military C-130, sitting in a mesh cargo seat.

    On the ice, Morrow serves as part of a team consisting of representatives of numerous government agencies including the National Science Foundation, Coast Guard, Navy, Army, Coast Guard. All working together to ensure a successful mission.

    “Nothing can happen without all of us working together,” said Morrow. “It is super cooperative and interoperative.”

    Everyone who is part of the ODF mission live in barracks at McMurdo Station, or on the ships. Life is communal with shared rooms and a dining hall. Those supporting the mission get to know each other personally and, like a combat unit, create their own support structure for each other.

    “Being at McMurdo Station is like being at summer camp for adults,” laughed Morrow. “It’s a very tight-knit group of people, working and living in a challenging environment. We get very close.”

    Weather is a constant factor in Antarctica. The continent is known for its extreme environment, particularly subzero temperatures and high winds. February is summertime in the Southern Hemisphere. In this small window of just a few weeks, ODF takes place. And while it is summer, temperatures on the ice still hover around freezing during the day and below zero at night. Cargo operations can move forward, despite the temperatures, but high winds can put a pause on work for hours, with the ships’ cranes unable to move cargo in winds over 25 knots.

    “The weather is everything,” explained Morrow. “The Southern Ocean is the most unforgiving and treacherous water way on Earth. The weather can keep flights and ships from coming into port. The weather can put the offload on pause. This can mean that some of the cargo may not be offloaded. It is the National Science Foundation who has to make the decisions on how to stay inside the mission window.”

    With all the challenges and unpredictabilities of the ODF missions, those who support these operations come away with a feeling of being a part of something special and important, something outside the normal course of their job description.

    “I never thought I would get to go on a mission to Antarctica,” said Morrow. “But I love going to McMurdo Station, and I’m proud to be a part of it and to represent MSC.”

    Following operations in Antarctica, Ocean Gladiator will travel to Japan to deliver the floating modular causeway, before sailing for Port Hueneme, Calif., where they will offload cargo, completing their mission.

    Operation Deep Freeze is a joint service, on-going Defense Support to Civilian Authorities mission in support of the National Science Foundation (NSF). NSF is the lead agency for the United States Antarctic Program. Mission support consists of active duty, Guard and Reserve personnel from the U.S. Air Force, Navy, Army, and Coast Guard as well as Department of Defense civilians and attached non-DOD civilians. ODF operates from two primary locations situated at Christchurch, New Zealand and McMurdo Station, Antarctica. MSC-chartered ships have made the challenging voyage to Antarctica every year since the station and its resupply mission were established in 1955.

    MIL Security OSI –

    February 28, 2025
  • MIL-OSI Europe: Written question – Overhauling the multiannual financial framework for 2028-2034: can the Commission guarantee that common agricultural policy funding won’t be cut to finance other priorities? – E-000692/2025

    Source: European Parliament

    Question for written answer  E-000692/2025
    to the Commission
    Rule 144
    Mathilde Androuët (PfE)

    An overhaul of the multiannual financial framework for 2028-2034 was announced several months ago, and a copy has already been published[1]. Given the costly priorities set out in the document, which will eat up a lot of the budget, questions arise as to the introduction of new revenue and the uncertainty surrounding financing via new own resources. No clear political and legal agreement has yet been reached to make up for the fact that there has been no increase in Member States’ national contributions.

    The Commission is considering new taxes, such as the extension of the EU’s Emissions Trading System, the introduction of the Carbon Border Adjustment Mechanism and the establishment of a minimum tax on multinationals. Even if an agreement is reached, however, these would not be enough to cover the shortfall.

    With no new revenue, the EU will have no choice but to cut existing budgets, and this could undermine a key sector like agriculture. The common agricultural policy (CAP) is vital for France and its farming industry, which is already reeling, in particular owing to the proliferation of free trade agreements.

    With NextGenerationEU[2] debt – estimated at between EUR 25 billion and EUR 30 billion per year as of 2028 – likely to result in budget cuts, can the Commission guarantee that CAP funding will not be cut to finance other priorities?

    Submitted: 13.2.2025

    • [1] https://www.contexte.com/actualite/pouvoirs/budget-post-2027-la-commission-pose-les-premieres-pierres-dun-chantier-titanesque_218085.html
    • [2] https://commission.europa.eu/strategy-and-policy/recovery-plan-europe_en
    Last updated: 27 February 2025

    MIL OSI Europe News –

    February 28, 2025
  • MIL-OSI Europe: REPORT on the European Semester for economic policy coordination: employment and social priorities for 2025 – A10-0023/2025

    Source: European Parliament

    MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    on the European Semester for economic policy coordination: employment and social priorities for 2025

    (2024/2084(INI))

    The European Parliament,

    – having regard to Article 3 of the Treaty on European Union (TEU),

     – having regard to Articles 9, 121, 148 and 149 of the Treaty on the Functioning of the European Union (TFEU),

    – having regard to the European Pillar of Social Rights (EPSR) proclaimed and signed by the Council, Parliament and the Commission on 17 November 2017,

    – having regard to the Commission communication of 4 March 2021 entitled ‘The European Pillar of Social Rights Action Plan’ (COM(2021)0102) and its proposed 2030 headline targets on employment, skills and poverty reduction,

    – having regard to the Commission communication of 17 December 2024 entitled ‘2025 European Semester – Autumn package’ (COM(2024)0700),

    – having regard to the Commission communication of 26 November 2024 entitled ‘2025 European Semester: bringing the new economic governance framework to life’ (COM(2024)0705),

     – having regard to the Commission proposal of 17 December 2024 for a joint employment report from the Commission and the Council (COM(2024)0701),

    – having regard to the Commission recommendation of 17 December 2024 for a Council recommendation on the economic policy of the euro area (COM(2024)0704),

     – having regard to the Commission report of 17 December 2024 entitled ‘Alert Mechanism Report 2025’ (COM(2024)0702),

     – having regard to the Commission staff working document of 26 November 2024 entitled ‘Fiscal statistical tables providing relevant background data for the assessment of the 2025 draft budgetary plans’ (SWD(2024)0950),

    – having regard to the Commission staff working document of 17 December 2024 on the changes in the scoreboard the Macroeconomic Imbalance Procedure Scoreboard in the context of the regular review process (SWD(2024)0702),

    – having regard to its resolution of 22 October 2024 on the Council position on Draft amending budget No 4/2024 of the European Union for the financial year 2024 – update of revenue (own resources) and adjustments to some decentralised agencies[1],

    – having regard to Mario Draghi’s report of 9 September 2024 entitled ‘The future of European competitiveness’,

    – having regard to Enrico Letta’s report of April 2024 on the future of the single market[2],

    – having regard to the La Hulpe Declaration on the Future of the European Pillar of Social Rights signed by Parliament, the Commission, the European Economic and Social Committee and the Council on 16 April 2024,

    – having regard to the Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing a Social Climate Fund and amending Regulation (EU) 2021/1060[3],

    – having regard to the Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97[4], and in particular to Articles 3, 4, 13 and 27 thereof,

    – having regard to the Commission communication of 17 January 2023 entitled ‘Harnessing talent in Europe’s regions’ (COM(2023)0032),

    – having regard to the Commission communication of 20 March 2023 entitled ‘Labour and skills shortages in the EU: an action plan’ (COM(2024)0131),

    – having regard to the 2020 European Skills Agenda,

    – having regard to the Commission communication of 7 September 2022 on the European care strategy (COM(2022)0440),

    – having regard to the Council Recommendation on access to affordable, high-quality long-term care[5],

    – having regard to the EU Social Scoreboard and its headline and secondary indicators,

    – having regard to the Commission communication of 3 March 2021 entitled ‘Union of Equality: Strategy for the Rights of Persons with Disabilities 2021-2030’ (COM(2021)0101),

    – having regard to the Commission report of 19 September 2024 entitled ‘Employment and Social Developments in Europe (ESDE): upward social convergence in the EU and the role of social investment’,

    – having regard to the Council Decision on Employment Guidelines, adopted by the Employment, Social Policy, Health and Consumer Affairs Council on 2 December 2024, which establishes employment and social priorities aligned with the principles of the EPSR,

    – having regard to the Tripartite Declaration for a thriving European Social Dialogue and to the forthcoming pact on social dialogue,

    – having regard to Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union[6] (Minimum Wage Directive),

    – having regard to the European Social Charter, referred to in the preamble of the EPSR,

    – having regard to the EU Roma strategic framework for equality, inclusion and participation for 2020-2030,

    – having regard to the United Nations Sustainable Development Goals (SDGs),

    – having regard to the Gender Equality Strategy 2020-2025,

    – having regard to the EU Anti-Racism Action Plan 2020-2025,

    – having regard to the LGBTIQ Equality Strategy 2020-2025,

    – having regard to Rule 55 of its Rules of Procedure,

    – having regard to the report of the Committee on Employment and Social Affairs (A10-0023/2025),

    A. whereas progress has been made towards achieving the EU’s employment targets, namely that at least 78 % of people aged 20 to 64 should be in employment by 2030, despite the uncertainty created by Russia’s war of aggression against Ukraine and the impact of high inflation; whereas, according to the Commission’s 2025 autumn economic forecast, EU employment has reached a rate of 75.3 %; whereas growth in employment in the EU remained robust in 2023; whereas in two thirds of the Member States, employment growth in 2023 was on track to reach the national 2030 target; whereas significant challenges nevertheless persist, such as high unemployment rates in some Member States, particularly among young people and persons with disabilities, as do significant inequalities between sectors and regions, which can negatively affect social cohesion and the well-being of European citizens in the long term;

    B. whereas the European Semester combines various different instruments in an integrated framework for multilateral coordination and surveillance of economic, employment and social policies within the EU and it must become a key tool for fostering upward social convergence; whereas the Social Convergence Framework is a key tool for assessing social challenges and upward convergence within the European Semester and for monitoring social disparities across Member States, while addressing the challenges identified in the Joint Employment Report (JER);

    C. whereas the Union has adopted the 2030 target of reducing the number of people at risk of poverty and social exclusion by at least 15 million compared to 2019, including at least 5 million children; whereas in nearly half of the Member States the trend is heading in the opposite direction; whereas one child in four in the European Union is still at risk of poverty and social exclusion; and whereas the current trend will not make it possible to meet the 2030 target; whereas public spending on children and youth should not be seen only as social expenditure but as an investment in the future; whereas the promotion of strong, sustainable and inclusive economic growth can succeed only if the next generation can develop their full educational potential in order to be prepared for the changing labour market, whereas to meet the 2030 Barcelona targets for early childhood education and care, the EU should invest an additional EUR 11 billion per year[7];

    D. whereas despite a minimal reduction in the number of people at risk of poverty or social exclusion in the EU in 2023, approximately one in five still faces this challenge, with notable disparities for children, young and older people, persons with disabilities, LGTBI, non-EU born individuals, and Roma communities;

    E. whereas significant disparities are observed among children from ethnic or migrant backgrounds and children with disabilities; whereas 83 % of Roma children live in households at risk of poverty; whereas the EU and national resources currently deployed are in no way sufficient for addressing the challenge of child poverty in the EU and, therefore, a dedicated funding instrument for the European Child Guarantee as well as synergies with other European and national funds are of the utmost importance in both the current multiannual financial framework (MFF) and the next one;

    F. whereas the EPSR must be the compass guiding EU social and economic policies, whereas the Commission should monitor progress on the implementation of the EPSR using the Social Scoreboard and the Social Convergence Framework;

    G. whereas poor quality jobs among the self-employed are disproportionately widespread while the rate of self-employment is declining, including among young people;

    H. whereas there are still 1.4 million people residing in institutions in the EU; whereas residents of institutions are isolated from the broader community and do not have sufficient control over their lives and the decisions that affect them; whereas despite the fact that the European Union has long been committed to the process of deinstitutionalisation, efforts are still needed at both European and national level to enable vulnerable groups to live independently in a community environment;

    I. whereas demographic challenges, including an ageing population, low birth rates and rural depopulation, with young people in particular moving to urban areas, profoundly affect the economic vitality and attractiveness of EU regions, the labour markets, and consequently, the sustainability of welfare systems, and further aggravate the regional disparities in the EU, and hence represent a structural challenge for the EU economy; and whereas, as underlined in the Draghi report, sustainable growth and competitiveness in Europe depend to a large extent on adapting education and training systems to evolving skills needs, prioritising adult learning and vocational education and training, and the inclusion of the active population in the labour market and on a robust welfare system;

    J. whereas, as highlighted in the Draghi report, migrant workers have been an important factor in reducing labour shortages and are more likely to work in occupations with persistent shortages than workers born in the EU;

    K. whereas 70 % of workers in Europe are in good-quality jobs, 30 % are in high-strain jobs where demands are more numerous than resources available to balance them leading to overall poor job quality; whereas in many occupations suffering from persistent labour shortages the share of low-quality jobs is higher than 30 %;

    L. whereas the Letta report states that there is a decline in the birth rate, noting the importance of creating a framework to support all families as part of a strategy of inclusive growth in line with the EPSR; whereas the report notes that the free movement of people remains the least developed of the four freedoms and argues for reducing barriers to intra-EU occupational mobility while addressing the social, economic and political challenges facing the sending Member States and their most disadvantaged regions, as well as safeguarding the right to stay; whereas there is a need to promote family-friendly and work-life balance policies, ensuring accessible and professional care systems as well as public quality education, family-related leave and flexible working arrangements in line with the European Care Strategy;

    M. whereas inflation has increased the economic burden on households, having a particularly negative impact on groups in vulnerable situations, such as single parents, large families, older people or persons with disabilities, whereas housing costs and energy poverty remain major problems; whereas housing is becoming unaffordable for those who live in households where housing costs account for 40 % of total disposable income; whereas investment in social services, housing supply – including social housing – and policies that facilitate the accessibility and affordability of housing play a key role in reducing poverty among vulnerable households;

    N. whereas the EU’s micro, small and medium-sized enterprises face particular challenges such as staying competitive against third-country players, maintaining production levels despite rising energy costs and finding the necessary skills for the green and digital transitions; whereas they need financial and technical support to comply with regulatory requirements and take advantage of the opportunities offered by the twin transitions;

    O. whereas labour and skills shortages remain a problem at all levels, and are reported by companies of all sizes and sectors; whereas these shortages are exacerbated by a lack of candidates to fill critical positions in key sectors such as education, healthcare, transport, science, technology, engineering and construction, especially in areas affected by depopulation; whereas these shortages can result from a number of factors, such as difficult working conditions, unattractive salaries, demand for new skill sets and a shortage of relevant training, the lack of public services, barriers of access to medium and higher education and lack of recognition of skills and education;

    P. whereas the Union has adopted the target that at least 60 % of adults should participate in training every year by 2030; whereas the Member States have committed themselves to national targets in order to achieve this headline goal and whereas the majority of Member States lost ground in the pursuit of these national targets; whereas further efforts are needed to ensure the provision of, and access to, quality training policies that promote lifelong learning; whereas upskilling, reskilling and training programmes must be available for all workers, including those with disabilities, and should also be adapted to workers’ needs and capabilities;

    Q. whereas in 2022, the average Programme for International Student Assessment (PISA) score across the OECD on the measures of basic skills (reading, mathematics and science) of 15-year-olds dropped by 10 points compared to the last wave in 2018; whereas underachievement is prevalent among disadvantaged learners, demonstrating a widening of educational inequalities; whereas this worrying deterioration calls for reforms and investments in education and training;

    R. whereas the EU’s capacity to deal with future shocks, crises and ‘polycrises’ while navigating the demographic, digital and green transitions, will depend greatly on the conditions under which critical workers will be able to perform their work; whereas addressing the shortages and retaining all types of talent requires decent working conditions, access to social protection systems, and opportunities for skills development tailored to the needs; and whereas addressing skills shortages is crucial to achieving the digital and green transitions, ensuring inclusive and sustainable growth and boosting the EU’s competitiveness;

    S. whereas it is essential to promote mobility within the EU and consider attracting skilled workers from third countries, while ensuring respect for and enforcement of labour and social rights and channelling third-country nationals entering the EU through legal migration pathways towards occupations experiencing shortages, supported by an effective integration policy, in full complementarity with harnessing talents from within the Union;

    T. whereas gender pay gaps remain considerable in most EU Member States and whereas care responsibilities are an important factor that continue to constrain women into part-time employment or lead to their exclusion from the labour market, resulting in a wider gender employment gap;

    U. whereas the JER highlights the right to disconnect, in particular in the context of telework, acknowledging the critical role of this right in ensuring a work-life balance in a context of increasing digitalisation and remote working;

    V. whereas challenges to several sectors, such as automotive manufacturing and energy intensive industries, became evident in 2024 and a number of companies announced large-scale restructuring;

    W. whereas there are disparities in the coverage of social services, including long-term care, child protection, domestic violence support, and homelessness aid, that need to be addressed through the European Semester;

    X. whereas there is currently no regular EU-wide collection of data on social services investment and coverage; whereas collecting such data is key for an evidence-based analysis of national social policies in the European Semester analysis; whereas this should be addressed through jointly agreed criteria and data collection standards for social services investment and coverage in the Member States; whereas the European Social Network’s Social Services Index is an example of how such data collection can contribute to the European Semester analysis;

    Y. whereas the crisis in generational renewal, demographic changes, and lack of sufficient investment in public services have led to an increased risk of poverty and social exclusion, particularly affecting children and older people, single-parent households and large families, the working poor, persons with disabilities, and people from marginalised backgrounds; whereas an ambitious EU anti-poverty strategy will be essential to reverse this trend and provide responses to the multidimensional phenomenon of poverty;

    Z. whereas Eurofound research shows that suicide rates have been creeping up since 2021, after decreasing for decades; whereas more needs to be done to address causes of mental health problems in working and living conditions (importantly social inclusion), and access to support for people with poor mental health remains a problem;

    AA. whereas there were still over 3 300 fatal accidents and almost 3 million nonfatal accidents in the EU-27 in 2021; whereas over 200 000 workers die each year from work-related illnesses; whereas these data do not include all accidents caused by undeclared work, making it plausible to assume that the true numbers greatly exceed the official statistics; whereas in 2017, according to Eurofound, 20 % of jobs in Europe were of ‘poor quality’ and put workers at increased risk regarding their physical or mental health; whereas 14 % of workers have been exposed to a high level of psychosocial risks; whereas 23 % of European workers believe that their safety or their health is at risk because of their work;

    AB. whereas the results of the April 2024 Eurobarometer survey on social Europe highlight that 88 % of European citizens consider social Europe to be important to them personally; whereas this was confirmed by the EU Post-Electoral Survey 2024, where European citizens cited rising prices and the cost of living (42 %) and the economic situation (41 %) as the main topics that motivated them to vote in the 2024 European elections;

    AC. whereas according to Article 3 TEU, social progress in the EU is one of the aims of a highly competitive social market economy, together with full employment, a high level of protection and improvement of the quality of the environment; whereas Article 3 TEU also states that the EU ‘shall combat social exclusion and discrimination, and shall promote social justice and protection, equality between women and men, solidarity between generations and protection of the rights of the child’;

    AD. whereas the new EU economic governance framework entered into force in April 2024 and aims to promote sustainable and inclusive growth and to give more space for social investment and achievement of the objectives of the EPSR; whereas, for the first time, the revision includes a social convergence framework as an integrated part of the European Semester;

    AE. whereas under the new EU economic governance framework, all Member States have to include reforms and investments in their medium-term plans addressing common EU priorities and challenges identified in country-specific recommendations in the context of the European Semester; whereas the common EU priorities include social and economic resilience, including the EPSR;

    AF. whereas European social partners, during Macroeconomic Dialogue, have denounced the lack of involvement of social partners in the drafting of the medium-term fiscal structural plans and ETUC, SMEUnited and SGIEurope have signed a joint statement for a material and factual involvement of social partners in the economic governance and the European Semester;

    AG. whereas public investment is expected to increase in 2025 in almost all Member States, with a significant contribution from NextGenerationEU’s Recovery and Resilience Facility (RRF) and EU funds and will contribute to social spending, amounting to around 25 % of the total estimated expenditure under the RRF, securing growth and economic resilience[8]; whereas social investments and reforms in key areas can boost employment, social inclusion, competitiveness and economic growth[9]; whereas social partners are essential for designing and implementing policies that promote sustainable and inclusive growth, decent and quality work, and fair transitions and must be involved at all levels of governance in accordance with the TFEU;

    AH. whereas the Member States should implement the Minimum Wage Directive without delay and prepare action plans that increase collective bargaining coverage in line with the directive, where applicable;

    AI. whereas according to the Organization for Economic Co-operation and Development (OECD), on average across OECD countries, occupations at highest risk of automation account for about 28 % of employment[10]; whereas social dialogue and collective bargaining are crucial in this context to ensure a participatory approach to managing change driven by technological developments, addressing potential concerns, while fostering workers’ adaptation (including via skills provision); whereas digitalisation, robotisation, automation and artificial intelligence (AI) must benefit workers and society by improving working conditions and quality of life, ensuring a good work-life balance, creating better employment opportunities, and contributing to socio-economic convergence; whereas workers and their trade unions will play a critical role in anticipating and tackling risks emerging from those challenges;

     

    AJ. whereas social dialogue and collective bargaining are essential for the EU’s competitiveness, labour productivity and social cohesion;

    1. Considers that the Commission and the Council should strengthen their efforts to implement the EPSR, in line with the action plan of March 2021 and the La Hulpe Declaration, to achieve the 2030 headline targets; calls on the Commission to ensure that the JER 2026 analyses the implementation of all the principles of the EPSR in line with Regulation (EU) 2024/1263 and includes an analysis of the social dimension of the national medium-term fiscal structural plans related to social resilience, including the EPSR; welcomes, in this regard, the announcement of a new Action Plan on the implementation of the EPSR[11] for 2025 to give a new impetus to social progress; welcomes the fact that almost all Member States are expected to increase public investment in 2025, which is necessary to ensure access to quality public services and achieve the aims of the EPSR; recalls that the Member States can mobilise the RRF within the scope defined by the Regulation (EU) 2021/241[12] until 31 December 2026 on policies for sustainable and inclusive growth and the young;

    2. Stresses the importance of using the Social Scoreboard and the Social Convergence Framework to identify risks to, and to track progress in, reducing inequalities, strengthening social protection systems and promoting decent working conditions and supportive measures for workers to manage the transitions; stresses that in this regard, it is necessary to ensure a sustainable, fair and inclusive Europe where social rights are fully protected and safeguarded at the same level as economic freedoms; recalls that EU citizens identify social Europe as one of their priorities;

    3. Regrets the lack of data on and analysis of wealth inequality and wealth concentration in the EU as this is one of the main determinants of poverty; points out that according to Distributional Wealth Accounts, a dataset developed by the European System of Central Banks, the share of wealth held by the top 10 % stood at 56 % in the fourth quarter of 2023, while the bottom half held just 5 %;

    4. Welcomes the inclusion of analysis on the positive contribution of the SDGs and the European equality strategies in the JER 2025 and calls on the Commission to ensure that the JER 2026 includes both a section analysing the progress towards the SDGs related to employment and social policy, and another on progress towards eliminating social and labour discrimination in line with the Gender Equality Strategy 2020-2025, the EU Anti-Racism Action Plan 2020-2025, the EU Roma strategic framework for equality, inclusion and participation 2020-2030, the LGBTIQ Equality Strategy 2020-2025, and the Strategy for the rights of persons with disabilities 2021-2030;

    5. Calls on the Member States to implement the updated employment guidelines, with an emphasis on education and training for all, new technologies such as AI, and recent policy initiatives on platform work, affordable and decent housing and tackling labour and skills shortages, with a view to strengthening democratic decision-making;

    6. Reiterates the importance of investing in workforce skills development and occupational training and of ensuring quality employment, with an emphasis on the individual right to training and lifelong learning; urges the Member States to develop upskilling and reskilling measures in collaboration with local stakeholders, including educational and training bodies and the social partners, in order to reinforce the link between the education and training systems and the labour market and to anticipate labour market needs; welcomes the fact that employment outcomes for recent graduates from vocational education and training (VET) continue to improve across the EU; is concerned about young people’s declining educational performance, particularly in basic skills; welcomes, in this regard, the announcement of an Action Plan on Basic Skills and a STEM Education Strategic Plan; calls on the Member States to invest in programmes to equip learners with the basic, digital and transversal skills needed for the world of work and its digitisation as well as to help them to contribute meaningfully to society; recalls the important role that the European Globalisation Adjustment Fund for displaced workers can play in supporting and reskilling workers who were made redundant as a result of major restructuring events;

    7. Welcomes the announcement of a quality jobs roadmap to ensure a just transition for all; calls on the Commission to include in this roadmap considerations for measures linked to the use of AI and algorithmic management in the world of work so that new technologies are harnessed to improve working conditions and productivity while respecting workers’ rights and work-life balance as recognised in the JER[13]; calls on the Commission to propose a directive on the use of AI in the workplace that ensures that workers’ rights are protected and respected;

    8. Stresses that the response to labour shortages in the European Union also involves improving and facilitating labour mobility within the Union; calls on the Member States to strengthen and facilitate the recognition of skills and qualifications in the Union, including those of third-country nationals; calls on the Commission to analyse the effectiveness of the European Employment Services (EURES) platform with a view to a potential revision of its operation;

    9. Notes that the number of early leavers from education and training, people with lower levels of education, young people not in education, employment or training (NEETs) and among them vulnerable groups, including Roma, women, older people, low- and medium-qualified people, persons with disabilities and people with a migrant or minority background, depending on the country-specific context, remains high in several Member States, despite a downward trend in the European Union; calls on the Member States to reinforce the Youth Guarantee as stated in Principle 4 of the EPSR; in order to support young people in need throughout their personal and professional development; reiterates the pivotal role that VET plays in providing the knowledge, skills and competencies necessary for young people entering the labour market; emphasises the need to invest in the quality and attractiveness of VET through the European Social Fund Plus (ESF+); recalls, therefore, the need to address this situation and develop solutions to keep young people in education, training or employment and the importance of ensuring their access to traineeships and apprenticeships, enabling them to gain their first work experience and facilitating their transition from education to employment as well as to create working conditions that enable an ageing workforce to remain in the labour market;

    10. Considers that, although there has been an improvement, persons with disabilities, especially women with disabilities, still face significant obstacles in the labour market, and that there is therefore a need for vocational and digital training, while promoting the inclusion of persons with disabilities, targeting the inactive labour force and groups with low participation in the labour market, including women, young people, older workers and persons with chronic diseases; calls on the Commission to update the EU Disability Strategy with new flagship initiatives and actions from 2025 onwards, such as a European Disability Employment and Skills Guarantee and the sharing of best practices such as the disability card, in particular to address social inclusion and independent living for people with disabilities, also ensuring their access to quality education, training and employment through guidance on retaining disability allowances;

    11. Expresses concern that Roma continue to face significant barriers to employment, with persistent biases limiting their prospects; notes that the EU Roma strategic framework for equality, inclusion, and participation highlights a lack of progress in employment access and a growing share of Roma youth not in employment, education, or training; emphasises the framework’s goal of halving the employment gap between Roma and the general population and ensuring that at least 60 % of Roma are in paid work by 2030; urges the Member States to adopt an integrated, equality-focused approach and to ensure that public policies and services effectively reach all Roma, including those in remote rural areas;

    12. Stresses the need to pay attention to the social and environmental aspects of competitiveness, emphasising the need for investments in education and training for all to ensure universal access to high-quality public education and professional training programmes, as well as sustainable practices to foster inclusive growth; underlines that social partners should play a key role in identifying and addressing skills needs across the EU;

    13. Calls on the Commission and the Member States to include specific recommendations on housing affordability in the European Semester and to promote housing investment; urges the Member States to ensure that housing investments support long-term quality housing solutions that are actually affordable for low-income and middle-income households, highlighting that investments in social and affordable housing are crucial in order to ensure and improve the quality of life for all; stresses the need for a better use of EU funding, such as through European Investment Bank financial instruments, in particular to support investments to increase the energy efficiency of buildings; calls on the Commission and the Member States to take decisive action to provide an EU regulatory framework for the housing sector, together with an assessment of Union policies, funds and bottlenecks that should facilitate the construction, conversion and renovation of accessible, affordable and energy-efficient housing, including social housing, that meets the needs of young people, people with reduced mobility, low- and middle-income groups, families at risk and people in more vulnerable situations, while protecting homeowners and those seeking access to home ownership from a further reduction in supply;

    14. Welcomes the announced European Affordable Housing Plan to support Member States in addressing the housing crisis and soaring rents; calls on the Commission to assess and publish which potential barriers on State aid rules affect housing accessibility; recalls that the Social Climate Fund aims to provide financial aid to Member States from 2026 to support vulnerable households, in particular with measures and investments intended to increase the energy efficiency of buildings, decarbonisation of heating and cooling of buildings and the integration in buildings of renewable energy generation and storage;

    15. Considers that homelessness is a dramatic social problem in the EU; calls for a single definition of homelessness in the EU, which would enable the systematic comparison and assessment of the extent of homelessness across different EU Member States; calls on the Commission to develop a strategy and work towards ending homelessness in the EU by 2030 by promoting access to affordable and decent housing as well as access to quality social services; urges the Member States to better use the available EU instruments, including the ESF+, in this matter[14];

    16. Calls on the Member States to design national homelessness strategies centred around housing-based solutions; welcomes the intention to deliver a Council recommendation on homelessness[15]; urges the Commission to further increase the ambition of the European Platform on Combating Homelessness, in particular by providing it with a dedicated budget;

    17. Considers that EU action is urgently needed to address the persistently high levels of poverty and social exclusion in the EU, particularly among children, young and older people, persons with disabilities, non-EU born individuals, LGTBI and Roma communities; highlights that access to quality social services should be prioritised, with binding targets to reduce homelessness and ensure energy security for vulnerable households; calls on the Commission to adopt the first-ever EU Anti-Poverty Strategy;

    18. Recalls the Union objective of transitioning from institutional to community or family-based care; calls on the Commission to put forward an action plan on deinstitutionalisation; stresses that this action plan should cover all groups still living in institutions, including children, persons with disabilities, people with mental health issues, people affected by homelessness and older people; calls on the Member States to make full use of the ESF+ funds as well as other relevant European and national funds in order to finalise the deinstitutionalisation process so as to ensure that every EU citizen can live in a family or community environment;

    19. Calls on the Commission to deliver a European action plan for mental health, in line with its recent recommendations[16], and to complement it with a directive on psychosocial risks in the workplace; calls on the Member States to strengthen access to mental health services and emotional support programmes for all, particularly children, young people and older people; requests a better use of the Social Scoreboard indicators to address the impact of precarious living conditions and uncertainty on mental health;

    20. Calls on the Commission to address loneliness by promoting a holistic EU strategy on loneliness and access to professional care; calls also for this EU strategy to address the socio-economic impact of loneliness on productivity and well-being by tackling issues such as rural isolation; urges the Member States to continue implementing the Council recommendation on access to affordable, quality long-term care with a view to ensuring access to quality care while ensuring decent working conditions for workers in the care sector, as well as for informal carers;

    21. Recognises that 44 million Europeans are frequent informal long-term caregivers, the majority of whom are women[17];

    22. Recognises the unique role of carers in society, and while the definition of care workers is not harmonised across the EU, the long-term care sector employs 6.4 million people across the EU;

    23. Is concerned that, in 2023, 94.6 million people in the EU were still at risk of poverty or social exclusion; stresses that without a paradigm shift in the approach to combating poverty, the European Union and its Member States will not achieve their poverty reduction objectives; believes that the announcement of the first-ever EU Anti-Poverty Strategy is a step in the right direction towards reversing the trend, but must provide a comprehensive approach to tackling the multidimensional aspects of poverty and social exclusion with concrete actions, strong implementation and monitoring; calls for this Strategy to encompass everybody experiencing poverty and social exclusion, first and foremost the most disadvantaged, but also specific measures for different groups such as persons experiencing in-work poverty, homeless people, people with disabilities, single-parent families and, above all, children in order to sustainably break the cycle of poverty; stresses that the transposition of the Minimum Wage Directive will be key to preventing and fighting poverty risks among workers, while reinforcing incentives to work, and welcomes the fact that several Member States have amended or plan to amend their minimum wage frameworks; is concerned about the rise of non-standard forms of employment where workers are more likely to face in-work poverty and find themselves without adequate legal protections; stresses that an EU framework directive on adequate minimum income and active inclusion, in compliance with the subsidiarity principle, would contribute to the goals of reducing poverty and fostering the integration of people absent from the labour market;

    24. Reiterates its call on the Commission to carefully monitor implementation of the Child Guarantee in all Member States as part of the European Semester and country-specific recommendations; reiterates its call for an increase in the funding of the European Child Guarantee with a dedicated budget of at least EUR 20 billion and for all Member States to allocate at least 5 % of their allocated ESF+ funds to fighting child poverty and promoting children’s well-being; considers that the country-specific recommendations should reflect Member States’ budgetary compliance with the minimum required allocation for tackling child poverty set out in the ESF+ Regulation[18]; calls on the Commission to provide an ambitious budget for the Child Guarantee in the next MFF in order to respond to the growing challenge of child poverty and social exclusion;

    25. Is concerned about national policies that create gaps in health coverage, increasing inequalities both within and between Member States, such as privatisation of public healthcare systems, co-payments and lack of coverage; highlights that these deepen poverty, erode health and well-being, and increase social inequalities within and across EU countries; warns that this also undermines the implementation of principle 16 of the EPSR and of SDG 3.8 on universal health coverage, as well as the EPSR’s overall objective of promoting upward social convergence in the EU, leaving no one behind; believes that the indicators used in the Social Scoreboard do not provide a comprehensive understanding of healthcare affordability;

    26. Underlines that employers need to foster intergenerational links within companies and intergenerational learning between younger and older workers, and vice versa; underlines that an ageing workforce can help a business develop new products and services to adapt to the needs of an ageing society in a more creative and productive way; calls, furthermore, for the creation of incentives to encourage volunteering and mentoring to induce the transfer of knowledge between generations;

    27. Warns that, according to European Central Bank reports, real wages are still below their pre-pandemic level, while productivity was roughly the same; agrees that this creates some room for a non-inflationary recovery in real wages and warns that if real wages do not recover, this would increase the risk of protracted economic weakness, which could cause scarring effects and would further dent productivity in the euro area relative to other parts of the world; believes that better enforcement of minimum wages and strengthening collective bargaining coverage can have a beneficial effect on levels of wage inequality, especially by helping more vulnerable workers at the bottom of the wage distribution who are increasingly left out;

    28. Calls for the Member States to ensure decent working conditions, comprising among other things decent wages, access to social protection, lifelong learning opportunities, occupational health and safety, a good work-life balance and the right to disconnect, reasonable working time, workers’ representation, democracy at work and collective agreements; urges the Member States to foster democracy at work, social dialogue and collective bargaining and to protect workers’ rights, particularly in the context of the green and digital transitions, and to ensure equal pay for equal work by men and women, enhance pay transparency and address gender-based inequality to close the gender pay gap in the EU;

    29. Recalls the importance of improving access to social protection for the self-employed and calls on the Commission to monitor the Member States’ national plans for the implementation of the Council Recommendation of 8 November 2019 on access to social protection for workers and the self-employed[19] as part of the country-specific recommendations; recalls, in this regard, as the rate of self-employed professionals in the cultural and creative sectors is more than double that in the general population, the 13 initiatives laid down in the Commission’s 21 February 2024 response to the European Parliament resolution of 21 November 2023 on an EU framework for the social and professional situation of artists and workers in the cultural and creative sectors[20] and calls on the Commission to start implementing them in cooperation with the Member States;

    30. Stresses that the role of social dialogue and social partners should be systematically integrated into the design and implementation of employment and social policies, ensuring the involvement of social partners at all levels;

    31. Calls for the implementation of policies that promote work-life balance and the right to disconnect, with the aim of improving the quality of life for all families and workers, for ensuring the implementation of the Work-Life Balance Directive[21] and of the European Care Strategy; calls on the Commission to put forward a legislative proposal to address teleworking and the right to disconnect; as well as a proposal for the creation of a European card for all types of large families and a European action plan for single parents, offering educational and social advantages; calls, ultimately, for initiatives to combat workforce exclusion as a consequence of longer periods of sick leave, to adapt the workplace and to promote flexible working conditions and to develop strategies to support workers’ return after longer periods of absence;

    32. Calls for demographic challenges to be prioritised in the EU’s cohesion policy and for concrete action at EU and national levels; calls on the Commission to prioritise the development of the Commission communication on harnessing talent in Europe’s regions and the ‘Talent Booster Mechanism’ in order to promote social cohesion and to step up funding for rural and outermost areas and regions with a high rate of depopulation, supporting quality job creation, public services, local development projects and basic infrastructure that favour the population’s ‘right to stay’, especially in the case of young people; highlights the importance of introducing specific measures to address regional inequalities in education and training, ensuring equal access to high-quality and affordable education for all;

    33. Is concerned that, despite improvements, several population groups are still significantly under-represented in the EU labour market, including women, older people, low- and medium-qualified people, persons with disabilities and people with a migrant or minority background; warns that  educational inequalities have deepened, further exacerbating the vulnerabilities of students from disadvantaged and migrant backgrounds; points out that, according to the JER, people with migrant or minority backgrounds can significantly benefit from targeted measures in order to address skills mismatches, improve language proficiency, combat discrimination and receive tailored and integrated support services; stresses the importance of strengthening efforts in the implementation of the 2021-27 Action Plan on Integration and Inclusion, which provides a common policy framework to support the Member States in developing national migrant integration policies;

    34. Calls on the Commission and the Council to prioritise reducing administrative burdens with the aim of simplification while respecting labour and social standards; believes that better support for SMEs and actual and potential entrepreneurs will improve the EU’s competitiveness and long-term sustainability, boost innovation and create quality jobs; notes that SMEs and self-employed professionals in all sectors are essential for the EU’s economic growth and thus the financing of social policies; urges the implementation of specific recommendations to improve the single market; takes note of the Commission’s publication of the ‘Competitiveness Compass’ on 29 January 2025[22];

    35. Calls on the Commission to conduct competitiveness checks on every new legislative proposal, taking into account the overall impact of EU legislation on companies, as well as on other EU policies and programmes;

    36. Considers that the social economy is an essential component of the EU’s social market economy and a driver for the implementation of the EPSR and its targets, often providing employment to vulnerable and excluded groups; calls on the Commission and the Member States to strengthen their support for all social economy enterprises but especially non-profit ones, as highlighted in the Social Economy Action Plan 2021 and the Liège Roadmap for the Social Economy, in order to promote quality, decent, inclusive work and the circular economy, to encourage the Member States to facilitate access to funding and to enhance the visibility of social economy actors; calls for the Commission to explore innovative funding mechanisms to support the development of the social economy in Europe[23] and to foster a dynamic and inclusive business environment;

    37. Believes that, in this year of transition, with the implementation of the revised economic governance rules, the Member States should align fiscal responsibility with sustainable and inclusive growth and employment, notes that the involvement of social partners, including in the development of medium-term fiscal structural plans, should be enhanced to contribute to the goals of the new economic governance framework;

    38. Welcomes the fact that the national medium-term fiscal structural plans, under the new economic governance framework, have to include the reforms and investments responding to the main challenges identified in the context of the European Semester and also to ensure debt sustainability while investing strategically in the principles of the EPSR with the aim of fostering upward social convergence;

    39. Is concerned that compliance with the country-specific recommendations (CSRs) remains low; reiterates its call, therefore, for an effective implementation of CSRs by the Member States so as to promote healthcare and sustainable pension systems, in line with principles 15 and 16 of the EPSR, and long-term prosperity for all citizens, taking into account the vulnerability of those workers whose careers are segmented, intermittent and subject to labour transitions; insists that the Commission should reinforce its dialogues with the Member States on the implementation of existing recommendations and of the Employment Guidelines as well as on current or future policy action to address identified challenges;

    40. Welcomes the establishment of a framework to identify risks to social convergence within the European Semester, for which Parliament called strongly; recalls that under this framework, the Commission assesses risks to upward social convergence in Member States and monitors progress on the implementation of the EPSR on the basis of the Social Scoreboard and of the principles of the Social Convergence Framework; welcomes the fact that the 2025 JER delivers country-specific analysis based on the principles of the Social Convergence Framework; calls on the Commission to further develop innovative quantitative and qualitative analysis tools under this new Framework in order to make optimal use of it in the future cycles of the European Semester;

    41. Welcomes the fact that the first analysis based on the principles of the Social Convergence Framework points to upward convergence in the labour market in 2023[24]; notes with concern that employment outcomes of under-represented groups still need to improve and that risks to upward convergence persist at European level in relation to skills development, ranging from early education to lifelong learning, and the social outcomes of at-risk-of-poverty and social exclusion rates; calls on the Commission to further analyse these risks to upward social convergence in the second stage of the analysis and to discuss with the Member States concerned the measures undertaken or envisaged to address these risks;

    42. Recognises the cost of living crisis, which has increased the burden on households, and the rising cost of housing, which, in conjunction with high energy costs, is contributing to high levels of energy poverty across the EU; calls, therefore, on the Commission and Member States to comprehensively address the root causes of this crisis by prioritising policies that promote economic resilience, social cohesion, and sustainable development;

    43. Warns of the social risks stemming from the crisis in the automotive sector, which is facing unprecedented pressure from both external and internal factors; calls on the Commission to pay attention to this sector and enhance social dialogue and the participation of workers in transition processes; stresses the urgent need for a coordinated EU response via an emergency task force of trade unions and employers to respond to the current crisis;

    44. Calls on the Commission to monitor data on restructuring and its impact on employment, such as by using the European Restructuring Monitor, to facilitate measures in support of restructuring and labour market transitions, and to consider highlighting national measures supporting a socially responsible way of restructuring in the European Semester;

    45. Calls on the Commission to monitor the development of minimum wages in the Member States following the transposition of the Minimum Wage Directive to determine whether the goal of ‘adequacy’ of minimum wages is being achieved;

    46. Is concerned about the Commission’s revision of the Macroeconomic Imbalance Procedure (MIP) Scoreboard, particularly the reduction in employment and social indicators, which are crucial for assessing the social and labour market situation in the Member States; regrets the fact that youth unemployment is no longer considered as a headline indicator, despite its relevance in identifying and addressing specific labour market challenges and in adopting adequate public policies; stresses that social standards indicators should be given greater consideration in the decision-making process; regrets the fact that the Commission did not duly consult Parliament and reminds the Commission of its obligation to closely cooperate with Parliament, the Council and social partners before drawing up the MIP scoreboard and the set of macroeconomic and macro-financial indicators for Member States; stresses that the implementation of the principles of the EPSR must be part of the MIP scoreboard;

    47. Considers that territorial and social cohesion are essential components of the competitiveness agenda, and legislation such as the European Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency (SURE) remain a positive example to inspire future EU initiatives;

    48. Considers that the Commission and the Member States should ensure that fiscal policies under the European Semester support investments aligned with the EPSR, particularly in areas such as decent and affordable housing, quality healthcare, education, and social protection systems, as these are critical for social cohesion and long-term economic sustainability and to address the challenges identified through social indicators;

    49. Stresses the need to address key challenges identified in the Social Scoreboard as ‘critical’ and ‘to watch’, including children at risk of poverty or social exclusion, the gender employment gap, housing cost overburden, childcare, and long-term care the disability employment gap, the impact of social transfers on reducing poverty, and basic digital skills[25];

    50. Stresses the negative impacts that the cost of living crisis has had on persons with disabilities;

    51. Urges the Member States to consider robust policies that ensure fair wages and improve working conditions, particularly for low-income and precarious workers;

    52. Calls on the Member States to strengthen social safety nets to provide adequate support to those whose income from employment is insufficient to meet basic living costs;

    53. Stresses the need for timely and harmonised data on social policies to improve evidence-based policymaking and targeted social investments; calls for improvements to be made to the Social Scoreboard in order to cover the 20 EPSR principles with the introduction of relevant indicators reflecting trends and causes of inequality, such as quality employment, wealth distribution, access to public services, adequate pensions, the homelessness rate, mental health and unemployment; recalls that the at-risk-of-poverty-or-social-exclusion (AROPE) indicator fails to reveal the causes of complex inequality; calls on the Commission and the Member States to develop a European data collection framework on social services to monitor the investment in and coverage of social services;

    54. Instructs its President to forward this resolution to the Council and the Commission.

    MIL OSI Europe News –

    February 28, 2025
  • MIL-OSI Europe: Portugal: EIB finances Galp’s Renewable Hydrogen and Biofuels projects in Sines with €430 million

    Source: European Investment Bank

    EIB

    • The two projects, already in construction at the Sines Refinery, represent a total investment of €650 million.
    • The Biofuels unit, financed with €250 million, will produce low-carbon fuels essential for the decarbonization of transport.
    • The Green Hydrogen production unit, financed with €180 million, will be one of the largest in Europe.

    The European Investment Bank (EIB) has granted a €430 million loan for the construction of two key projects aimed at transforming Galp’s Sines Refinery, making a crucial contribution for the decarbonization of heavy-duty road transport and aviation.

    Galp is developing the Biofuels unit, already at a construction stage, in partnership with Japan’s Mitsui, as part of a total €400 million investment, of which €250 million is provided by the EIB. This unit will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel of biological origin (HVO) with identical characteristics to the fossil-based fuels used in regular combustion engines.

    This unit, set to begin production in 2026, will have the capacity to produce up to 270,000 tons of renewable fuels, enough for Portugal to comply with the European Union mandate for this type of fuels in aviation. SAF is essential for air transportation – responsible for about 3% of global greenhouse gas emissions – to begin its decarbonization journey.

    In parallel, Galp is building in the same site a 100MW electrolyser, a €250 million investment of which the EIB will finance €180 million. It is set to produce up to 15,000 tons of green hydrogen per year when it goes online next year, becoming one of the first operational units of its size in Europe.

    “These pioneering projects are a clear example of how we can combine financing, innovation, and our environmental commitment to promote a fair and sustainable energy transition,” said Jean-Christophe Laloux, Director General, Head of EU Lending and Advisory at the EIB. “By supporting the production of advanced biofuels and green hydrogen, we are contributing to a more energy-independent Europe that aligns with global climate goals.”

    “We have mobilized partners, private investment, and European financing to drive a transformative project that brings European and national energy and industrial policies to life,” said Ronald Doesburg, Galp’s Executive Board Member responsible for the Industrial area. “More is needed from energy companies, public funding and government support if we want to maintain Portugal’s relevance in an increasingly unstable world,” he concluded.

    The two projects support the goal of climate neutrality by 2050, in line with the European Green Deal, and strengthen the EU’s energy independence as outlined in the REPowerEU plan. The projects benefit from €22,5 in Recovery and Resilience Plan incentives.

    Background information   

    About the EIB  

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. 

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.   

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. 

    High-quality, up-to-date photos of our headquarters for media use are available here.

    About Galp

    Galp is an energy company committed to developing efficient and sustainable solutions in its operations and the integrated offerings it provides to its customers. We create simple, flexible, and competitive solutions for energy or mobility needs, catering to large industries, small and medium-sized enterprises, as well as individual consumers.

    Our portfolio includes various forms of energy – from electricity generated from renewable sources to natural gas and liquid fuels, including low-carbon options. As a producer, we engage in the extraction of oil and natural gas from reservoirs located kilometers below the ocean surface, and we are also one of the leading solar-based electricity producers in the Iberian region.

    We contribute to the economic development of the 10 countries where we operate and to the social progress of the communities that welcome us. Galp employs more than 7,000 people from 52 nationalities.

    Sines Advances Biofuels; Sines Green Hydrogen Production
    EIB finances Galp’s Renewable Hydrogen and Biofuels projects in Sines with €430 million
    ©EIB
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    Sines Advances Biofuels; Sines Green Hydrogen Production
    EIB finances Galp’s Renewable Hydrogen and Biofuels projects in Sines with €430 million
    ©Sines
    Download original

    MIL OSI Europe News –

    February 28, 2025
  • MIL-OSI Europe: Cyprus gets €72 million EIB loan for new national archaeological museum as EU bank publishes 2024 financing results in country

    Source: European Investment Bank

    • EIB provides €72 million loan to Cypriot government to build state-of-the-art archaeological museum in capital Nicosia
    • Credit for landmark Cypriot cultural project follows 2024 EIB Group financing in Cyprus totalling €225 million mainly for university-campus and road-network upgrades.
    • Latest annual results bring EIB Group support in Cyprus to €1.3 billion over past five years.

    The European Investment Bank (EIB) is providing the Cypriot government with a €72 million loan for a new national archaeological museum in the capital Nicosia. The EIB credit will be used to build the planned state-of-the-art Cyprus Archaeological Museum, which will serve as a cultural landmark while contributing to urban regeneration.

    The EIB Group, which also includes the European Investment Fund (EIF), today also announced that new financing in Cyprus in 2024 totalled €225 million. Top projects last year included EIB loans of €125 million for the Cyprus University of Technology (CUT) to build affordable student housing and upgrade campus facilities in Paphos and Limassol and €100 million for the Cypriot government to improve and expand road networks.

    “Our work in Cyprus is a testament to the transformative power of the EIB’s strategic financing,” said EIB Vice-President Kyriakos Kakouris. “In 2024, we reaffirmed our commitment to the country by supporting major projects in sustainable and affordable student housing as well as critical transport- infrastructure improvements, reinforcing social cohesion in the process.”

    Cultural landmark

    The planned Cyprus Archaeological Museum, whose construction is due to be completed in 2029 .will be located in the centre of Nicosia  and transform the area into a vibrant cultural hub. The museum will feature spacious exhibition halls equipped with cutting-edge technologies to enhance the presentation of Cyprus’s rich archaeological heritage, which dates to the Neolithic  period  and  extends to the Christian era.

    “The new museum will offer dedicated spaces for research, education and engagement with the scientific and cultural community, further strengthening Cyprus’s role in the global archaeological and cultural dialogue,” said EIB Vice-President Kyriacos Kakouris.

    It will house an extensive collection from Department of Antiquities of the Cypriot Culture Ministry’s

    “The Cyprus Archaeological Museum will stand as the country’s most significant cultural initiative,” said Cypriot Minister of Finance Makis Keravnos. “This is a crucial project for the Cypriot government and the people as it will revitalise and showcase – in the most fitting way – our country’s rich and diverse history. It will also create a dynamic cultural, recreational, and social hub in the heart of the city.”

    The new project includes a state-of-the-art 30,000 sqm museum and a 20,000 sqm landscaped public square, transforming the Nicosia area into a vibrant cultural hub.

    “For many years, it has been the state’s vision to establish a museum capable of housing, with the dignity they deserve, the memories of our archaeological past,” said Cypriot Minister of Transport, Communications and Works Alexis Vafeades. “This museum will become a place of attraction for people of all ages and nationalities, fostering inclusivity and sharing Cyprus’s rich archaeological history with the world.”

    2024 results

    The latest annual results from the EIB Group bring its total financing in Cyprus over the past five years to €1.3 billion. The annual average in the country since 2000 is €256 million.

    The EIB’s support for CUT last year included two financing agreements with the university totalling €108 million and one accord with the Municipality of Paphos amounting to €17 million. The project features the construction and renovation of academic and administrative spaces, along with the addition of 703 student accommodation units.

    In Limassol, the planned upgrades include the creation of a solar energy park to power the campus, making it energy self-sufficient.

    Part of the financing is supported by the InvestEU programme, marking its first initiative in Cyprus.

    The EIB’s support for Cypriot road development in 2024 was part of a €200 million package for such infrastructure in the country, with a second €100 million tranche expected to be signed in 2025. The projects, which involve road upgrades in various Cypriot regions, are expected to be completed by 2029.

    Background information  

    EIB 

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

    High-quality, up-to-date photos of our headquarters for media use are available here.

    MIL OSI Europe News –

    February 28, 2025
  • MIL-OSI Europe: Meeting of 29-30 January 2025

    Source: European Central Bank

    Account of the monetary policy meeting of the Governing Council of the European Central Bank held in Frankfurt am Main on Wednesday and Thursday, 29-30 January 2025

    27 February 2025

    1. Review of financial, economic and monetary developments and policy options

    Financial market developments

    Ms Schnabel noted that the financial market developments observed in the euro area after October 2024 had reversed since the Governing Council’s previous monetary policy meeting on 11-12 December 2024. The US presidential election in November had initially led to lower euro area bond yields and equity prices. Since the December monetary policy meeting, however, both risk-free yields and risk asset prices had moved substantially higher and had more than made up their previous declines. A less gloomy domestic macroeconomic outlook and an increase in the market’s outlook for inflation in the euro area on the back of higher energy prices had led investors to expect the ECB to proceed with a more gradual rate easing path.

    A bounce-back of euro area risk appetite had supported equity and corporate bond prices and had contained sovereign bond spreads. While the euro had also rebounded recently against the US dollar, it remained significantly weaker than before the US election.

    In euro money markets the year-end had been smooth. Money market conditions at the turn of the year had turned out to be more benign than anticipated, with a decline in repo rates and counterparties taking only limited recourse to the ECB’s standard refinancing operations.

    In the run-up to the US election and in its immediate aftermath, ten-year overnight index swap (OIS) rates in the euro area and the United States had decoupled, reflecting expectations of increasing macroeconomic divergence. However, since the Governing Council’s December monetary policy meeting, long-term interest rates had increased markedly in both the euro area and the United States. An assessment of the drivers of euro area long-term rates showed that both domestic and US factors had pushed yields up. But domestic factors – expected tighter ECB policy and a less gloomy euro area macroeconomic outlook – had mattered even more than US spillovers. These factors included a reduction in perceived downside risks to economic growth from tariffs and a stronger than anticipated January flash euro area Purchasing Managers’ Index (PMI).

    Taking a longer-term perspective on ten-year rates, since October 2022, when inflation had peaked at 10.6% and policy rates had just returned to positive territory, nominal OIS rates and their real counterparts had been broadly trending sideways. From that perspective, the recent uptick was modest and could be seen as a mean reversion to the new normal.

    A decomposition of the change in ten-year OIS rates since the start of 2022 showed that the dominant driver of persistently higher long-term yields compared with the “low-for-long” interest rate and inflation period had been the sharp rise in real rate expectations. A second major driver had been an increase in real term premia in the context of quantitative tightening. This increase had occurred mainly in 2022. Since 2023, real term premia had broadly trended sideways albeit with some volatility. Hence, the actual reduction of the ECB’s balance sheet had elicited only mild upward pressure on term premia. From a historical perspective, despite their recent increase, term premia in the euro area remained compressed compared with the pre-quantitative easing period.

    Since the December meeting, investors had revised up their expectations for HICP inflation (excluding tobacco) for 2025. Current inflation fixings (swap contracts linked to specific monthly releases in year-on-year euro area HICP inflation excluding tobacco) for this year stood above the 2% target. Higher energy prices had been a key driver of the reassessment of near-term inflation expectations. Evidence from option prices, calculated under the assumption of risk neutrality, suggested that the risk to inflation in financial markets had become broadly balanced, with the indicators across maturities having shifted discernibly upwards. Recent survey evidence suggested that risks of inflation overshooting the ECB’s target of 2% had resurfaced. Respondents generally saw a bigger risk of an inflation overshoot than of an inflation undershoot.

    The combination of a less gloomy macroeconomic outlook and stronger price pressures had led markets to reassess the ECB’s expected monetary policy path. Market pricing suggested expectations of a more gradual easing cycle with a higher terminal rate, pricing out the probability of a cut larger than 25 basis points at any of the next meetings. Overall, the size of expected cuts to the deposit facility rate in 2025 had dropped by around 40 basis points, with the end-year rate currently seen at 2.08%. Market expectations for 2025 stood above median expectations in the Survey of Monetary Analysts. Survey participants continued to expect a faster easing cycle, with cuts of 25 basis points at each of the Governing Council’s next four monetary policy meetings.

    The Federal Funds futures curve had continued to shift upwards, with markets currently expecting between one and two 25 basis point cuts by the end of 2025. The repricing of front-end yields since the Governing Council’s December meeting had been stronger in the euro area than in the United States. This would typically also be reflected in foreign exchange markets. However, the EUR/USD exchange rate had recently decoupled from interest rates, as the euro had initially continued to depreciate despite a narrowing interest rate differential, before recovering more recently. US dollar currency pairs had been affected by the US Administration’s comments, which had put upward pressure on the US dollar relative to trading partners’ currencies.

    Euro area equity markets had outperformed their US counterparts in recent weeks. A model decomposition using a standard dividend discount model for the euro area showed that rising risk-free yields had weighed significantly on euro area equity prices. However, this had been more than offset by higher dividends, and especially a compression of the risk premium, indicating improved investor risk sentiment towards the euro area, as also reflected in other risk asset prices. Corporate bond spreads had fallen across market segments, including high-yield bonds. Sovereign spreads relative to the ten-year German Bund had remained broadly stable or had even declined slightly. Relative to OIS rates, the spreads had also remained broadly stable. The Bund-OIS spread had returned to levels observed before the Eurosystem had started large-scale asset purchases in 2015, suggesting that the scarcity premium in the German government bond market had, by and large, normalised.

    Standard financial condition indices for the euro area had remained broadly stable since the December meeting. The easing impulse from higher equity prices had counterbalanced the tightening impulse stemming from higher short and long-term rates. In spite of the bounce-back in euro area real risk-free interest rates, the yield curve remained broadly within neutral territory.

    The global environment and economic and monetary developments in the euro area

    Starting with inflation in the euro area, Mr Lane noted that headline inflation, as expected, had increased to 2.4% in December, up from 2.2% in November. The increase primarily reflected a rise in energy inflation from -2.0% in November to 0.1% in December, due mainly to upward base effects. Food inflation had edged down to 2.6%. Core inflation was unchanged at 2.7% in December, with a slight decline in goods inflation, which had eased to 0.5%, offset by services inflation rising marginally to 4.0%.

    Developments in most indicators of underlying inflation had been consistent with a sustained return of inflation to the medium-term inflation target. The Persistent and Common Component of Inflation (PCCI), which had the best predictive power of any underlying inflation indicator for future headline inflation, had continued to hover around 2% in December, indicating that headline inflation was set to stabilise around the ECB’s inflation target. Domestic inflation, which closely tracked services inflation, stood at 4.2%, staying well above all the other indicators in December. However, the PCCI for services, which should act as an attractor for services and domestic inflation, had fallen to 2.3%.

    The anticipation of a downward shift in services inflation in the coming months also related to an expected deceleration in wage growth this year. Wages had been adjusting to the past inflation surge with a substantial delay, but the ECB wage tracker and the latest surveys pointed to moderation in wage pressures. According to the latest results of the Survey on the Access to Finance of Enterprises, firms expected wages to grow by 3.3% on average over the next 12 months, down from 3.5% in the previous survey round and 4.5% in the equivalent survey this time last year. This assessment was shared broadly across the forecasting community. Consensus Economics, for example, foresaw a decline in wage growth of about 1 percentage point between 2024 and 2025.

    Most measures of longer-term inflation expectations continued to stand at around 2%, despite an uptick over shorter horizons. Although, according to the Survey on the Access to Finance of Enterprises, the inflation expectations of firms had stabilised at 3% across horizons, the expectations of larger firms that were aware of the ECB’s inflation target showed convergence towards 2%. Consumer inflation expectations had edged up recently, especially for the near term. This could be explained at least partly by their higher sensitivity to actual inflation. There had also been an uptick in the near-term inflation expectations of professionals – as captured by the latest vintages of the Survey of Professional Forecasters and the Survey of Monetary Analysts, as well as market-based measures of inflation compensation. Over longer horizons, though, the inflation expectations of professional forecasters remained stable at levels consistent with the medium-term target of 2%.

    Headline inflation should fluctuate around its current level in the near term and then settle sustainably around the target. Easing labour cost pressures and the continuing impact of past monetary policy tightening should support the convergence to the inflation target.

    Turning to the international environment, global economic activity had remained robust around the turn of the year. The global composite PMI had held steady at 53.0 in the fourth quarter of 2024, owing mainly to the continued strength in the services sector that had counterbalanced weak manufacturing activity.

    Since the Governing Council’s previous meeting, the euro had remained broadly stable in nominal effective terms (+0.5%) and against the US dollar (+0.2%). Oil prices had seen a lot of volatility, but the latest price, at USD 78 per barrel, was only around 3½% above the spot oil price at the cut-off date for the December Eurosystem staff projections and 2.6% above the spot price at the time of the last meeting. With respect to gas prices, the spot price stood at €48 per MWh, 2.7% above the level at the cut-off date for the December projections and 6.8% higher than at the time of the last meeting.

    Following a comparatively robust third quarter, euro area GDP growth had likely moderated again in the last quarter of 2024 – confirmed by Eurostat’s preliminary flash estimate released on 30 January at 11:00 CET, with a growth rate of 0% for that quarter, later revised to 0.1%. Based on currently available information, private consumption growth had probably slowed in the fourth quarter amid subdued consumer confidence and heightened uncertainty. Housing investment had not yet picked up and there were no signs of an imminent expansion in business investment. Across sectors, industrial activity had been weak in the summer and had softened further in the last few months of 2024, with average industrial production excluding construction in October and November standing 0.4% below its third quarter level. The persistent weakness in manufacturing partly reflected structural factors, such as sectoral trends, losses in competitiveness and relatively high energy prices. However, manufacturing firms were also especially exposed to heightened uncertainty about global trade policies, regulatory costs and tight financing conditions. Service production had grown in the third quarter, but the expansion had likely moderated in the fourth quarter.

    The labour market was robust, with the unemployment rate falling to a historical low of 6.3% in November – with the figure for December (6.3%) and a revised figure for November (6.2%) released later on the morning of 30 January. However, survey evidence and model estimates suggested that euro area employment growth had probably softened in the fourth quarter.

    The fiscal stance for the euro area was now expected to be balanced in 2025, as opposed to the slight tightening foreseen in the December projections. Nevertheless, the current outlook for the fiscal stance was subject to considerable uncertainty.

    The euro area economy was set to remain subdued in the near term. The flash composite output PMI for January had ticked up to 50.2 driven by an improvement in manufacturing output, as the rate of contraction had eased compared with December. The January release had been 1.7 points above the average for the fourth quarter, but it still meant that the manufacturing sector had been in contractionary territory for nearly two years. The services business activity index had decelerated slightly to 51.4 in January, staying above the average of 50.9 in the fourth quarter of 2024 but still below the figure of 52.1 for the third quarter.

    Even with a subdued near-term outlook, the conditions for a recovery remained in place. Higher incomes should allow spending to rise. More affordable credit should also boost consumption and investment over time. And if trade tensions did not escalate, exports should also support the recovery as global demand rose.

    Turning to the monetary and financial analysis, bond yields, in both the euro area and globally, had increased significantly since the last meeting. At the same time, the ECB’s past interest rate cuts were gradually making it less expensive for firms and households to borrow. Lending rates on bank loans to firms and households for new business had continued to decline in November. In the same period, the cost of borrowing for firms had decreased by 15 basis points to 4.52% and stood 76 basis points below the cyclical peak observed in October 2023. The cost of issuing market-based debt had remained at 3.6% in November 2024. Mortgage rates had fallen by 8 basis points to 3.47% since October, 56 basis points lower than their peak in November 2023. However, the interest rates on existing corporate and household loan books remained high.

    Financing conditions remained tight. Although credit was expanding, lending to firms and households was subdued relative to historical averages. Annual growth in bank lending to firms had risen to 1.5% in December, up from 1% in November, as a result of strong monthly flows. But it remained well below the 4.3% historical average since January 1999. By contrast, growth in corporate debt securities issuance had moderated to 3.2% in annual terms, from 3.6% in November. This suggested that firms had substituted market-based long-term financing for bank-based borrowing amid tightening market conditions and in advance of increasing redemptions of long-term corporate bonds. Mortgage lending had continued to rise gradually but remained muted overall, with an annual growth rate of 1.1% in December after 0.9% in November. This was markedly below the long-term average of 5.1%.

    According to the latest euro area bank lending survey, the demand for loans by firms had increased slightly in the last quarter. At the same time, credit standards for loans to firms had tightened again, having broadly stabilised over the previous four quarters. This renewed tightening of credit standards for firms had been motivated by banks seeing higher risks to the economic outlook and their lower tolerance for taking on credit risk. This finding was consistent with the results of the Survey on the Access to Finance of Enterprises, in which firms had reported a small decline in the availability of bank loans and tougher non-rate lending conditions. Turning to households, the demand for mortgages had increased strongly as interest rates became more attractive and prospects for the property market improved. Credit standards for housing loans remained unchanged overall.

    Monetary policy considerations and policy options

    In summary, the disinflation process remained well on track. Inflation had continued to develop broadly in line with the staff projections and was set to return to the 2% medium-term target in the course of 2025. Most measures of underlying inflation suggested that inflation would settle around the target on a sustained basis. Domestic inflation remained high, mostly because wages and prices in certain sectors were still adjusting to the past inflation surge with a substantial delay. However, wage growth was expected to moderate and lower profit margins were partially buffering the impact of higher wage costs on inflation. The ECB’s recent interest rate cuts were gradually making new borrowing less expensive for firms and households. At the same time, financing conditions continued to be tight, also because monetary policy remained restrictive and past interest rate hikes were still being transmitted to the stock of credit, with some maturing loans being rolled over at higher rates. The economy was still facing headwinds, but rising real incomes and the gradually fading effects of restrictive monetary policy should support a pick-up in demand over time.

    Concerning the monetary policy decision at this meeting, it was proposed to lower the three key ECB interest rates by 25 basis points. In particular, lowering the deposit facility rate – the rate through which the ECB steered the monetary policy stance – was justified by the updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission. The alternative – maintaining the deposit facility rate at the current level of 3.00% – would excessively dampen demand and therefore be inconsistent with the set of rate paths that best ensured inflation stabilised sustainably at the 2% medium-term target.

    Looking to the future, it was prudent to maintain agility, so as to be able to adjust the stance as appropriate on a meeting-by-meeting basis, and not to pre-commit to any particular rate path. In particular, monetary easing might proceed more slowly in the event of upside shocks to the inflation outlook and/or to economic momentum. Equally, in the event of downside shocks to the inflation outlook and/or to economic momentum, monetary easing might proceed more quickly.

    2. Governing Council’s discussion and monetary policy decisions

    Economic, monetary and financial analyses

    As regards the external environment, incoming data since the Governing Council’s previous monetary policy meeting had signalled robust global activity in the fourth quarter of 2024, with divergent paths across economies and an uncertain outlook for global trade. The euro had been broadly stable and energy commodity prices had increased. It was underlined that gas prices were currently over 60% higher than in 2024 because the average temperature during the previous winter had been very mild, whereas this winter was turning out to be considerably colder. This suggested that demand for gas would remain strong, as reserves needed to be replenished ahead of the next heating season, keeping gas prices high for the remainder of the year. In other commodity markets, metal prices were stable – subdued by weak activity in China and the potential negative impact of US tariffs – while food prices had increased.

    Members concurred that the outlook for the international economy remained highly uncertain. The United States was the only advanced economy that was showing sustained growth dynamics. Global trade might be hit hard if the new US Administration were to implement the measures it had announced. The challenges faced by the Chinese economy also remained visible in prices. Chinese inflation had declined further on the back of weak domestic demand. In this context, it was pointed out that, no matter how severe the new US trade measures turned out to be, the euro area would be affected either indirectly by disinflationary pressures or directly, in the event of retaliation, by higher inflation. In particular, if China were to redirect trade away from the United States and towards the euro area, this would make it easier to achieve lower inflation in the euro area but would have a negative impact on domestic activity, owing to greater international competition.

    With regard to economic activity in the euro area, it was widely recognised that incoming data since the last Governing Council meeting had been limited and, ahead of Eurostat’s indicator of GDP for the fourth quarter of 2024, had not brought any major surprises. Accordingly, it was argued that the December staff projections remained the most likely scenario, with the downside risks to growth that had been identified not yet materialising. The euro area economy had seen some encouraging signs in the January flash PMIs, although it had to be recognised that, in these uncertain times, hard data seemed more important than survey results. The outcome for the third quarter had surprised on the upside, showing tentative signs of a pick-up in consumption. Indications from the few national data already available for the fourth quarter pointed to a positive contribution from consumption. Despite all the prevailing uncertainties, it was still seen as plausible that, within a few quarters, there would be a consumption-driven recovery, with inflation back at target, policy rates broadly at neutral levels and continued full employment. Moreover, the latest information on credit flows and lending rates suggested that the gradual removal of monetary restrictiveness was already being transmitted to the economy, although the past tightening measures were still exerting lagged effects.

    The view was also expressed that the economic outlook in the December staff projections had likely been too optimistic and that there were signs of downside risks materialising. The ECB’s mechanical estimates pointed to very weak growth around the turn of the year and, compared with other institutions, the Eurosystem’s December staff projections had been among the most optimistic. Attention was drawn to the dichotomy between the performance of the two largest euro area economies and that of the rest of the euro area, which was largely due to country-specific factors.

    Recent forecasts from the Survey of Professional Forecasters, the Survey of Monetary Analysts and the International Monetary Fund once again suggested a downward revision of euro area economic growth for 2025 and 2026. Given this trend of downward revisions, doubts were expressed about the narrative of a consumption-driven economic recovery in 2025. Moreover, the December staff projections had not directly included the economic impact of possible US tariffs in the baseline, so it was hard to be optimistic about the economic outlook. The outlook for domestic demand had deteriorated, as consumer confidence remained weak and investment was not showing any convincing signs of a pick-up. The contribution from foreign demand, which had been the main driver of growth over the past two years, had also been declining since last spring. Moreover, uncertainty about potential tariffs to be imposed by the new US Administration was weighing further on the outlook. In the meantime, labour demand was losing momentum. The slowdown in economic activity had started to affect temporary employment: these jobs were always the first to disappear as the labour market weakened. At the same time, while the labour market had softened over recent months, it continued to be robust, with the unemployment rate staying low, at 6.3% in December. A solid job market and higher incomes should strengthen consumer confidence and allow spending to rise.

    There continued to be a strong dichotomy between a more dynamic services sector and a weak manufacturing sector. The services sector had remained robust thus far, with the PMI in expansionary territory and firms reporting solid demand. The extent to which the weakness in manufacturing was structural or cyclical was still open to debate, but there was a growing consensus that there was a large structural element, as high energy costs and strict regulation weighed on firms’ competitiveness. This was also reflected in weak export demand, despite the robust growth in global trade. All these factors also had an adverse impact on business investment in the industrial sector. This was seen as important to monitor, as a sustainable economic recovery also depended on a recovery in investment, especially in light of the vast longer-term investment needs of the euro area. Labour markets showed a dichotomy similar to the one observed in the economy more generally. While companies in the manufacturing sector were starting to lay off workers, employment in the services sector was growing. At the same time, concerns were expressed about the number of new vacancies, which had continued to fall. This two-speed economy, with manufacturing struggling and services resilient, was seen as indicating only weak growth ahead, especially in conjunction with the impending geopolitical tensions.

    Against this background, geopolitical and trade policy uncertainty was likely to continue to weigh on the euro area economy and was not expected to recede anytime soon. The point was made that if uncertainty were to remain high for a prolonged period, this would be very different from a shorter spell of uncertainty – and even more detrimental to investment. Therefore the economic recovery was unlikely to receive much support from investment for some time. Indeed, excluding Ireland, euro area business investment had been contracting recently and there were no signs of a turnaround. This would limit investment in physical and human capital further, dragging down potential output in the medium term. However, reference was also made to evidence from psychological studies, which suggested that the impact of higher uncertainty might diminish over time as agents’ perceptions and behaviour adapted.

    In this context, a remark was made on the importance of monetary and fiscal policies for enabling the economy to return to its previous growth path. Economic policies were meant to stabilise the economy and this stabilisation sometimes required a long time. After the pandemic, many economic indicators had returned to their pre-crisis levels, but this had not yet implied a return to pre-crisis growth paths, even though the output gap had closed in the meantime. A question was raised on bankruptcies, which were increasing in the euro area. To the extent that production capacity was being destroyed, the output gap might be closing because potential output growth was declining, and not because actual growth was increasing. However, it was also noted that bankruptcies were rising from an exceptionally low level and developments remained in line with historical regularities.

    Members reiterated that fiscal and structural policies should make the economy more productive, competitive and resilient. They welcomed the European Commission’s Competitiveness Compass, which provided a concrete roadmap for action. It was seen as crucial to follow up, with further concrete and ambitious structural policies, on Mario Draghi’s proposals for enhancing European competitiveness and on Enrico Letta’s proposals for empowering the Single Market. Governments should implement their commitments under the EU’s economic governance framework fully and without delay. This would help bring down budget deficits and debt ratios on a sustained basis, while prioritising growth-enhancing reforms and investment.

    Against this background, members assessed that the risks to economic growth remained tilted to the downside. Greater friction in global trade could weigh on euro area growth by dampening exports and weakening the global economy. Lower confidence could prevent consumption and investment from recovering as fast as expected. This could be amplified by geopolitical risks, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, which could disrupt energy supplies and further weigh on global trade. Growth could also be lower if the lagged effects of monetary policy tightening lasted longer than expected. It could be higher if easier financing conditions and falling inflation allowed domestic consumption and investment to rebound faster.

    On price developments, members concurred with Mr Lane’s assessment that the incoming data confirmed disinflation was on track and that a return to the target in the course of 2025 was within reach. On the nominal side, there had been no major data surprises since the December Governing Council meeting and inflation expectations remained well anchored. Recent inflation data had been slightly below the December staff projections, but energy prices were on the rise. These two elements by and large offset one another. The inflation baseline from the December staff projections was therefore still a realistic scenario, indicating that inflation was on track to converge towards target in the course of 2025. Nevertheless, it was recalled that, for 2027, the contribution from the new Emissions Trading System (ETS2) assumptions was mechanically pushing the Eurosystem staff inflation projections above 2%. Furthermore, the market fixings for longer horizons suggested that there was a risk of undershooting the inflation target in 2026 and 2027. It was remarked that further downside revisions to the economic outlook would tend to imply a negative impact on the inflation outlook and an undershooting of inflation could not be ruled out.

    At the same time, the view was expressed that the risks to the December inflation projections were now tilted to the upside, so that the return to the 2% inflation target might take longer than previously expected. Although it was acknowledged that the momentum in services inflation had eased in recent months, the outlook for inflation remained heavily dependent on the evolution of services inflation, which accounted for around 75% of headline inflation. Services inflation was therefore widely seen as the key inflation component to monitor during the coming months. Services inflation had been stuck at roughly 4% for more than a year, while core inflation had also proven sluggish after an initial decline, remaining at around 2.7% for nearly a year. This raised the question as to where core inflation would eventually settle: in the past, services inflation and core inflation had typically been closely connected. It was also highlighted that, somewhat worryingly, the inflation rate for “early movers” in services had been trending up since its trough in April 2024 and was now standing well above the “followers” and the “late movers” at around 4.6%. This partly called into question the narrative behind the expected deceleration in services inflation. Moreover, the January flash PMI suggested that non-labour input costs, including energy and shipping costs, had increased significantly. The increase in the services sector had been particularly sharp, which was reflected in rising PMI selling prices for services – probably also fuelled by the tight labour market. As labour hoarding was a more widespread phenomenon in manufacturing, this implied that a potential pick-up in demand and the associated cyclical recovery in labour productivity would not necessarily dampen unit labour costs in the services sector to the same extent as in manufacturing.

    One main driver of the stickiness in services inflation was wage growth. Although wage growth was expected to decelerate in 2025, it would still stand at 4.5% in the second quarter of 2025 according to the ECB wage tracker. The pass-through of wages tended to be particularly strong in the services sector and occurred over an extended period of time, suggesting that the deceleration in wages might take some time to be reflected in lower services inflation. The forward-looking wage tracker was seen as fairly reliable, as it was based on existing contracts, whereas focusing too much on lagging wage data posed the risk of monetary policy falling behind the curve. This was particularly likely if negative growth risks eventually affected the labour market. Furthermore, a question was raised as to the potential implications for wage pressures of more restrictive labour migration policies.

    Overall, looking ahead there seemed reasons to believe that both services inflation and wage growth would slow down in line with the baseline scenario in the December staff projections. From the current quarter onwards, services inflation was expected to decline. However, in the early months of the year a number of services were set to be repriced, for instance in the insurance and tourism sectors, and there were many uncertainties surrounding this repricing. It was therefore seen as important to wait until March, when two more inflation releases and the new projections would be available, to reassess the inflation baseline as contained in the December staff projections.

    As regards longer-term inflation expectations, members took note of the latest developments in market-based measures of inflation compensation and survey-based indicators. The December Consumer Expectations Survey showed another increase in near-term inflation expectations, with inflation expectations 12 months ahead having already gradually picked up from 2.4% in September to 2.8% in December. Density-based expectations were even higher at 3%, with risks tilted to the upside. According to the Survey on the Access to Finance of Enterprises, firms’ median inflation expectations had also risen to 3%. However it was regarded as important to focus more on the change in inflation expectations than on the level of expectations when interpreting these surveys.

    As regards risks to the inflation outlook, with respect to the market-based measures, the view was expressed that there had been a shift in the balance of risks, pointing to upside risks to the December inflation outlook. In financial markets, inflation fixings for 2025 had shifted above the December short-term projections and inflation expectations had picked up across all tenors. In market surveys, risks of overshooting had resurfaced, with a larger share of respondents in the surveys seeing risks of an overshooting in 2025. Moreover, it was argued that tariffs, their implications for the exchange rate, and energy and food prices posed upside risks to inflation.

    Against this background, members considered that inflation could turn out higher if wages or profits increased by more than expected. Upside risks to inflation also stemmed from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. Moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected. By contrast, inflation might surprise on the downside if low confidence and concerns about geopolitical events prevented consumption and investment from recovering as fast as expected, if monetary policy dampened demand by more than expected, or if the economic environment in the rest of the world worsened unexpectedly. Greater friction in global trade would make the euro area inflation outlook more uncertain.

    Turning to the monetary and financial analysis, members broadly agreed with the assessment presented by Ms Schnabel and Mr Lane. It was noted that market interest rates in the euro area had risen since the Governing Council’s December monetary policy meeting, partly mirroring higher rates in global financial markets. Overall, financial conditions had been broadly stable, with higher short and long-term interest rates being counterbalanced by strong risk asset markets and a somewhat weaker exchange rate.

    Long-term interest rates had been rising more substantially than short-term ones, resulting in a steepening of the yield curve globally since last autumn. At the same time, it was underlined that the recent rise in long-term bond yields did not appear to be particularly striking when looking at developments over a longer time period. Over the past two years long-term rates had remained remarkably stable, especially when taking into account the pronounced variation in policy rates.

    The dynamics of market rates since the December Governing Council meeting had been similar on both sides of the Atlantic. This reflected higher term premia as well as a repricing of rate expectations. However, the relative contributions of the underlying drivers differed. In the United States, one factor driving up market interest rates had been an increase in inflation expectations, combined with the persistent strength of the US economy as well as concerns over prospects of higher budget deficits. This had led markets to price out some of the rate cuts that had been factored into the rate expectations prevailing before the Federal Open Market Committee meeting in December 2024. Uncertainty regarding the policies implemented by the new US Administration had also contributed to the sell-off in US government bonds. In Europe, term premia accounted for a significant part of the increase in long-term rates, which could be explained by a combination of factors. These included spillovers from the United States, concerns over the outlook for fiscal policy, and domestic and global policy uncertainty more broadly. Attention was also drawn to the potential impact of tighter monetary policy in Japan, the world’s largest creditor nation, with Japanese investors likely to start shifting their funds away from overseas investments towards domestic bond markets in response to rising yields.

    The passive reduction in the Eurosystem’s balance sheet, as maturing bonds were no longer reinvested, was also seen as exerting gradual upward pressure on term premia over longer horizons, although this had not been playing a significant role – especially not in developments since the last meeting. The reduction had been indicated well in advance and had already been priced in, to a significant extent, at the time the phasing out of reinvestment had been announced. The residual Eurosystem portfolios were still seen to be exerting substantial downside pressure on longer-term sovereign yields as compared with a situation in which asset holdings were absent. It was underlined that, while declining central bank holdings did affect financial conditions, quantitative tightening was operating gradually and smoothly in the background.

    In the context of the discussion on long-term yields, attention was drawn to the possibility that rising yields might also lead to financial stability risks, especially in view of the high level of valuations and leverage in the world economy. A further financial stability risk related to the prospect of a more deregulated financial system in the United States, including in the realm of crypto-assets. This could allow risks to build up in the years to come and sow the seeds of a future financial crisis.

    Turning to financing conditions, past interest rate cuts were gradually making it less expensive for firms and households to borrow. For new business, rates on bank loans to firms and households had continued to decline in November. However, the interest rates on existing loans remained high, and financing conditions remained tight.

    Although credit was expanding, lending to firms and households was subdued relative to historical averages. Growth in bank lending to firms had risen to 1.5% in December in annual terms, up from 1.0% in November. Mortgage lending had continued to rise gradually but remained muted overall, with an annual growth rate of 1.1% in December following 0.9% in November. Nevertheless, the increasing pace of loan growth was encouraging and suggested monetary easing was starting to be transmitted through the bank lending channel. Some comfort could also be taken from the lack of evidence of any negative impact on bank lending conditions from the decline in excess liquidity in the banking system.

    The bank lending survey was providing mixed signals, however. Credit standards for mortgages had been broadly unchanged in the fourth quarter, after easing for a while, and banks expected to tighten them in the next quarter. Banks had reported the third strongest increase in demand for mortgages since the start of the survey in 2003, driven primarily by more attractive interest rates. This indicated a turnaround in the housing market as property prices picked up. At the same time, credit standards for consumer credit had tightened in the fourth quarter, with standards for firms also tightening unexpectedly. The tightening had largely been driven by heightened perceptions of economic risk and reduced risk tolerance among banks.

    Caution was advised on overinterpreting the tightening in credit standards for firms reported in the latest bank lending survey. The vast majority of banks had reported unchanged credit standards, with only a small share tightening standards somewhat and an even smaller share easing them slightly. However, it was recalled that the survey methodology for calculating net percentages, which typically involved subtracting a small percentage of easing banks from a small percentage of tightening banks, was an established feature of the survey. Also, that methodology had not detracted from the good predictive power of the net percentage statistic for future lending developments. Moreover, the information from the bank lending survey had also been corroborated by the Survey on the Access to Finance of Enterprises, which had pointed to a slight decrease in the availability of funds to firms. The latter survey was now carried out at a quarterly frequency and provided an important cross-check, based on the perspective of firms, of the information received from banks.

    Turning to the demand for loans by firms, although the bank lending survey had shown a slight increase in the fourth quarter it had remained weak overall, in line with subdued investment. It was remarked that the limited increase in firms’ demand for loans might mean they were expecting rates to be cut further and were waiting to borrow at lower rates. This suggested that the transmission of policy rate cuts was likely to be stronger as the end of the rate-cutting cycle approached. At the same time, it was argued that demand for loans to euro area firms was mainly being held back by economic and geopolitical uncertainty rather than the level of interest rates.

    Monetary policy stance and policy considerations

    Turning to the monetary policy stance, members assessed the data that had become available since the last monetary policy meeting in accordance with the three main elements the Governing Council had communicated in 2023 as shaping its reaction function. These comprised (i) the implications of the incoming economic and financial data for the inflation outlook, (ii) the dynamics of underlying inflation, and (iii) the strength of monetary policy transmission.

    Starting with the inflation outlook, members widely agreed that the incoming data were broadly in line with the medium-term inflation trajectory embedded in the December staff projections. Inflation had been slightly lower than expected in both November and December. The outlook remained heavily dependent on the evolution of services inflation, which had remained close to 4% for more than a year. However, the momentum of services inflation had eased in recent months and a further decrease in wage pressures was anticipated, especially in the second half of 2025. Oil and gas prices had been higher than embodied in the December projections and needed to be closely monitored, but up to now they did not suggest a major change to the baseline in the staff projections.

    Risks to the inflation outlook were seen as two-sided: upside risks were posed by the outlook for energy and food prices, a stronger US dollar and the still sticky services inflation, while a downside risk related to the possibility of growth being lower than expected. There was considerable uncertainty about the effect of possible US tariffs, but the estimated impact on euro area inflation was small and its sign was ambiguous, whereas the implications for economic growth were clearly negative. Further uncertainty stemmed from the possible downside pressures emanating from falling Chinese export prices.

    There was some evidence suggesting a shift in the balance of risks to the upside since December, as reflected, for example, in market surveys showing that the risk of inflation overshooting the target outweighed the risk of an undershooting. Although some of the survey-based inflation expectations as well as market-derived inflation compensation had been revised up slightly, members took comfort from the fact that longer-term measures of inflation expectations remained well anchored at 2%.

    Turning to underlying inflation, members concurred that developments in most measures of underlying inflation suggested that inflation would settle at around the target on a sustained basis. Core inflation had been sticky at around 2.7% for nearly a year but had also turned out lower than projected. A number of measures continued to show a certain degree of persistence, with domestic inflation remaining high and exclusion-based measures proving sticky at levels above 2%. In addition, the translation of wage moderation into a slower rise in domestic prices and unit labour costs was subject to lags and predicated on profit margins continuing their buffering role as well as a cyclical rebound in labour productivity. However, a main cause of stickiness in domestic inflation was services inflation, which was strongly influenced by wage growth, and this was expected to decelerate in the course of 2025.

    As regards the transmission of monetary policy, recent credit dynamics showed that monetary policy transmission was working. Both the past tightening and the subsequent gradual removal of restriction were feeding through to financing conditions, including lending rates and credit flows. It was highlighted that not all demand components had been equally responsive, with, in particular, business investment held back by high uncertainty and structural weaknesses. Companies widely cited having their own funds as a reason for not making loan applications, and the reason for not investing these funds was likely linked to the high levels of uncertainty, rather than to the level of interest rates. Hence low investment was not necessarily a sign of a restrictive monetary policy. At the same time, it was unclear how much of the past tightening was still in the pipeline. Similarly, it would take time for the full effect of recent monetary policy easing to reach the economy, with even variable rate loans typically adjusting with a lag, and the same being true for deposits.

    Monetary policy decisions and communication

    Against this background, all members agreed with the proposal by Mr Lane to lower the three key ECB interest rates by 25 basis points. Lowering the deposit facility rate – the rate through which the monetary policy stance was steered – was justified by the updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission.

    There was a clear case for a further 25 basis point rate cut at the current meeting, and such a step was supported by the incoming data. Members concurred that the disinflationary process was well on track, while the growth outlook continued to be weak. Although the goal had not yet been achieved and inflation was still expected to remain above target in the near term, confidence in a timely and sustained convergence had increased, as both headline and core inflation had recently come in below the ECB projections. In particular, a return of inflation to the 2% target in the course of 2025 was in line with the December staff baseline projections, which were constructed on the basis of an interest rate path that stood significantly below the present level of the forward curve.

    At the same time, it was underlined that high levels of uncertainty, lingering upside risks to energy and food prices, a strong labour market and high negotiated wage increases, as well as sticky services inflation, called for caution. Upside risks could delay a sustainable return to target, while inflation expectations might be more fragile after a long period of high inflation. Firms had also learned to raise their prices more quickly in response to new inflationary shocks. Moreover, the financial market reactions to heightened geopolitical uncertainty or risk aversion often led to an appreciation of the US dollar and might involve spikes in energy prices, which could be detrimental to the inflation outlook.

    Risks to the growth outlook remained tilted to the downside, which typically also implied downside risks to inflation over longer horizons. The outlook for economic activity was clouded by elevated uncertainty stemming from geopolitical tensions, fiscal policy concerns in the euro area and recent global trade frictions associated with potential future actions by the US Administration that might lead to a global economic slowdown. As long as the disinflation process remained on track, policy rates could be brought further towards a neutral level to avoid unnecessarily holding back the economy. Nevertheless, growth risks had not shifted to a degree that would call for an acceleration in the move towards a neutral stance. Moreover, it was argued that greater caution was needed on the size and pace of further rate cuts when policy rates were approaching neutral territory, in view of prevailing uncertainties.

    Lowering the deposit facility rate to 2.75% at the current meeting was also seen as appropriate from a risk-management perspective. On the one hand, it left sufficient optionality to react to the possible emergence of new price pressures. On the other hand, it addressed the risk of falling behind the curve in dialling back restriction and guarded against inflation falling below target.

    Looking ahead, it was regarded as premature for the Governing Council to discuss a possible landing zone for the key ECB interest rates as inflation converged sustainably to target. It was widely felt that even with the current deposit facility rate, it was relatively safe to make the assessment that monetary policy was still restrictive. This was also consistent with the fact that the economy was relatively weak. At the same time, the view was expressed that the natural or neutral rate was likely to be higher than before the pandemic, as the balance between the global demand for and supply of savings had changed over recent years. The main reasons for this were the high and rising global need for investment to deal with the green and digital transitions, the surge in public debt and increasing geopolitical fragmentation, which was reversing the global savings glut and reducing the supply of savings. A higher neutral rate implied that, with a further reduction in policy rates at the present meeting, rates would plausibly be getting close to neutral rate territory. This meant that the point was approaching where monetary policy might no longer be characterised as restrictive.

    In this context, the remark was made that the public debate about the natural or neutral rate among market analysts and observers was becoming more intense, with markets trying to gauge the Governing Council’s assessment of it as a proxy for the terminal rate in the current rate cycle. This debate was seen as misleading, however. The considerable uncertainty as to the level of the natural or neutral interest rate was recalled. While the natural rate could in theory be a longer-term reference point for assessing the monetary policy stance, it was an unobservable variable. Its practical usefulness in steering policy on a meeting-by-meeting basis was questionable, as estimates were subject to significant model and parameter uncertainty, so confidence bands were too large to give any clear guidance. Moreover, the natural rate was a steady state concept, which was hardly applicable in a rapidly changing environment – as at present – with continuous new shocks.

    Moreover, it was mentioned that a box describing the latest Eurosystem staff estimates of the natural rate would be published in the Economic Bulletin and pre-released on 7 February 2025. The box would emphasise the wide range of point estimates, the properties of the underlying models and the considerable statistical uncertainty surrounding each single point estimate. The view was expressed that there was no alternative to the Governing Council identifying, meeting by meeting, an appropriate policy rate path which was consistent with reaching the target over the medium term. Such an appropriate path could only be identified in real time, taking into account a sufficiently broad set of information.

    Turning to communication aspects, it was widely stressed that maintaining a data-dependent approach with full optionality at every meeting was prudent and continued to be warranted. The present environment of elevated uncertainty further strengthened the case for taking decisions meeting by meeting, with no room for forward guidance. The meeting-by-meeting approach, guided by the three-criteria framework, was serving the Governing Council well and members were comfortable with the way markets were interpreting the ECB’s reaction function. It was also remarked that data-dependence did not imply being backward-looking in calibrating policy. Monetary policy was, by definition, forward-looking, as it affected inflation in the future and the primary objective was defined over the medium term. Data took many forms, and all relevant information had to be considered in a timely manner.

    Taking into account the foregoing discussion among the members, upon a proposal by the President, the Governing Council took the monetary policy decisions as set out in the monetary policy press release. The members of the Governing Council subsequently finalised the monetary policy statement, which the President and the Vice-President would, as usual, deliver at the press conference following the Governing Council meeting.

    Monetary policy statement

    Monetary policy statement for the press conference of 30 January 2025

    Press release

    Monetary policy decisions

    Meeting of the ECB’s Governing Council, 29-30 January 2025

    Members

    • Ms Lagarde, President
    • Mr de Guindos, Vice-President
    • Mr Centeno
    • Mr Cipollone
    • Mr Demarco, temporarily replacing Mr Scicluna
    • Mr Dolenc, Deputy Governor of Banka Slovenije
    • Mr Elderson
    • Mr Escrivá*
    • Mr Holzmann
    • Mr Kālis, Acting Governor of Latvijas Banka
    • Mr Kažimír
    • Mr Knot
    • Mr Lane
    • Mr Makhlouf*
    • Mr Müller
    • Mr Nagel
    • Mr Panetta
    • Mr Patsalides*
    • Mr Rehn
    • Mr Reinesch
    • Ms Schnabel
    • Mr Šimkus
    • Mr Stournaras*
    • Mr Villeroy de Galhau
    • Mr Vujčić*
    • Mr Wunsch

    * Members not holding a voting right in January 2025 under Article 10.2 of the ESCB Statute.

    Other attendees

    • Mr Dombrovskis, Commissioner**
    • Ms Senkovic, Secretary, Director General Secretariat
    • Mr Rostagno, Secretary for monetary policy, Director General Monetary Policy
    • Mr Winkler, Deputy Secretary for monetary policy, Senior Adviser, DG Monetary Policy

    ** In accordance with Article 284 of the Treaty on the Functioning of the European Union.

    Accompanying persons

    • Mr Arpa
    • Ms Bénassy-Quéré
    • Mr Debrun
    • Mr Gavilán
    • Mr Gilbert
    • Mr Kaasik
    • Mr Koukoularides
    • Mr Lünnemann
    • Mr Madouros
    • Mr Martin
    • Mr Nicoletti Altimari
    • Mr Novo
    • Mr Rutkaste
    • Ms Schembri
    • Mr Šiaudinis
    • Mr Šošić
    • Mr Tavlas
    • Mr Ulbrich
    • Mr Välimäki
    • Ms Žumer Šujica

    Other ECB staff

    • Mr Proissl, Director General Communications
    • Mr Straub, Counsellor to the President
    • Ms Rahmouni-Rousseau, Director General Market Operations
    • Mr Arce, Director General Economics
    • Mr Sousa, Deputy Director General Economics

    Release of the next monetary policy account foreseen on 3 April 2025.

    MIL OSI Europe News –

    February 28, 2025
  • MIL-OSI Asia-Pac: A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations

    Source: Government of India

    A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations

    The meeting between Ekaterina, who is the European Union Commissioner for Startups, Research and Innovation and the Indian Minister marks a significant milestone in India-EU cooperation in the field of science and technology

    Recalls the long-standing and growing cooperation between India and the European Union (EU) in the field of science and technology

    “Prime Minister Narendra Modi Instrumental in Making India a hub of hub of cutting-edge research, fostering innovation, and driving transformative initiatives across various scientific domains” says Dr. Singh

    Highlights AI, Quantum Mission, healthcare, Ocean Polar along with other areas with potential of India -EU collaboration

    Posted On: 27 FEB 2025 8:27PM by PIB Delhi

    A high-level European Union delegation, led by Ms Ekaterina Zaharieva, currently on India visit, today called on Union Minister of State (Independent Charge) for Science and Technology, Dr. Jitendra Singh and discussed primarily the StartUp and innovation collaborations.

    The meeting between Ekaterina, who is the European Union Commissioner for Startups, Research and Innovation and the Indian Minister marks a significant milestone in India-EU cooperation in the field of science and technology.

    The Science and Technology Minister emphasized the longstanding partnership between India and the European Union, which dates back to the signing of the India-EU Science and Technology Agreement in 2001, renewed in 2015 and 2020, and set to be renewed once again for the period 2025-2030.

    Dr. Jitendra Singh credited Prime Minister Narendra Modi for his visionary leadership and unwavering support, which has played a pivotal role in India’s remarkable leap in science and technology. He noted that PM Modi has been instrumental in steering the country towards becoming a hub of cutting-edge research, fostering innovation, and driving transformative initiatives across various scientific domains.

    During the discussions, Dr. Jitendra Singh highlighted several key areas where India and the EU can collaborate further to drive innovation and sustainable development.

    These areas include:

    Water Resource Management

    Clean Energy & Smart Grids

    Artificial Intelligence (AI), Data & Robotics

    Healthcare (including Vaccine Development and Pandemic Preparedness)

    Climate Change & Polar Research

    The Minister stressed that collaboration in these areas would harness the strengths of both India and Europe, with an emphasis on increasing synergy and sharing knowledge and resources.

    Dr. Singh underscored India’s commitment to advancing joint research initiatives with the EU, particularly during the period from 2020 to 2024. He referred to ongoing projects such as:

    Department of Science and Technology (DST): Projects on Water, Energy, AI, Data, and Robotics

    Department of Biotechnology (DBT): Collaborative work on Water Resources and Vaccine Development

    Ministry of Earth Sciences (MoES): Joint research on Climate Change and Polar Research

    The Minister emphasized India’s substantial contribution to these projects, amounting to €20.92 million. He also named several noteworthy achievements and projects, including:

    Geospatial Mapping of Point/Non-Point Pollution Sources (SPRING)

    PAVITRA GANGA: Demonstration of novel wastewater treatment technologies at Kanpur and Barapullah, New Delhi

    ENDFLU: Development of an improved influenza vaccine (Myn002) for better protection against drifted influenza strains

    BRIC-THSTI: Development of domestic influenza vaccine testing capacity through the ENDFLU and INCENTIVE projects

    PRESCRIP-TEC: HPV awareness and screening initiatives

    RUTI®: Phase 1 trials of Anti-TB vaccine

    The Minister of Earth Sciences, Dr. Singh, further emphasized the importance of international collaboration in addressing oceanic and climatic challenges. Key areas of research include:Ocean warming, deoxygenation, and acidification;Polar climate studies;Ocean forecasting.

    Dr. Jitendra Singh stressed the need for global cooperation to address these threats and ensure the health of the planet’s ecosystems.

    Looking ahead, Dr. Singh outlined several promising areas for future India-EU collaboration:

    Quantum Research: India’s emerging Quantum R&D capabilities combined with the EU’s advanced quantum hardware can lead to breakthroughs in secure communication and computing.

    Bioeconomy: India’s first-of-its-kind Bioeconomy (BioE3) policy, along with the EU’s expertise, can foster growth in the sector.

    Green Hydrogen: India’s scaling renewable hydrogen projects, paired with the EU’s leadership in electrolysis technology, can drive transformational change in energy.

    Battery Technology & Blue Economy: Exploring innovations in energy storage and sustainable use of ocean resources.

    High-Performance Computing: Enhancing computational capabilities for scientific and industrial applications.

    Dr. Singh also highlighted India’s commitment to tackling climate change through clean energy collaboration, particularly in offshore wind and solar projects. This, he said, would help meet the ambitious climate targets set by both India and the EU.

    The S&T Minister pointed out that India’s National AI Mission, backed by substantial funding, will be a key area for collaboration between India and the EU. He emphasized the potential for both regions to lead in AI safety and security, ensuring the development of AI in a sustainable, equitable, and inclusive manner.

    In the health sector, Dr. Singh identified several key areas where India and the EU can collaborate:Infectious and Non-Infectious Diseases; Novel Therapeutics, Biologicals, and Early Diagnostics; Drug Repurposing; AI in Healthcare Antimicrobial Resistance (AMR); One Health Approach.

    He stressed that the partnership between India and Europe could extend to these critical health challenges, which have global implications.

    From the Directorate-General for Research and Innovation, Mr. Marc Lemaître, Director-General; Ms. Nienke Buisman, Head of Unit, Innovation, Prosperity, and International Cooperation; and from the Cabinet of the Commissioner, Ms. Sophie Alexandrova, Deputy Head of Cabinet, along with Mr. Ivan Dimov, Member of Cabinet; Mr. Pierrick Fillon-Ashida, First Counsellor & Head of the Research & Innovation Section; Dr. Vivek Dham, Policy Officer, Research & Innovation Section, EU Delegation to India, were part of the delegation.

    Dr. Jitendra Singh concluded the discussions by reiterating India’s deep commitment to strengthening its partnership with the European Union in science and technology. He expressed confidence that the shared vision for collaboration in key sectors will create a pathway to solving global challenges and advancing mutual interests.

    ********

    NKR/PSM

    (Release ID: 2106749) Visitor Counter : 41

    MIL OSI Asia Pacific News –

    February 28, 2025
  • MIL-OSI United Nations: Human Rights Council: Türk calls out ‘dehumanizing’ narratives on Gaza

    Source: United Nations 2

    Mr. Türk – making his closing remarks during the session reporting on the Occupied Palestinian Territory at the Human Rights Council – said he was deeply troubled by the “dangerous manipulation of language” and disinformation that surrounds discussions over the Palestine-Israel conflict.

    “We need to make sure that we resist all efforts to spread fear or incite hatred, including abhorrent, dehumanizing narratives, whether they’re insidious or explicit,” he said.

    “My Office will continue to work for justice for every victim and survivor by establishing and documenting the facts and standing firmly for accountability and the rule of law without exception.”

    Eritrean troops continue grave violations in Ethiopia

    The rights body then turned its focus to Eritrea on Thursday, where despite some long-awaited progress in improving the lives of ordinary Eritreans, the country’s authorities remain responsible for widespread alleged serious crimes including inside neighbouring Ethiopia, the forum heard.

    Ilze Brands Kehris, UN Assistant Secretary-General for Human Rights, said that the Eritrean Defence Forces have continued to carry out grave crimes in Ethiopia’s Tigray region and elsewhere with total impunity.

    “Our Office (OHCHR) has credible information that Eritrean Defence Forces remain in Tigray and are committing violations, including abductions, rape, property looting, and arbitrary arrests,” she told the Council, before calling for the immediate withdrawal of Eritrean soldiers.

    After a rapprochement between former enemies Eritrea and Ethiopia in 2018, Asmara sent troops to fight alongside Ethiopian federal troops against separatist rebels during the two-year conflict in Tigray, Amhara, Afar and Oromia.

    No justice in sight

    “In the current context, there is no likely prospect that the domestic judicial system will hold perpetrators accountable for the violations committed in the context of the Tigray conflict and in other cases,” the UN official told the Council, the world’s foremost human rights body.

    In a debate seeking to address the Council’s longstanding concerns about Eritrea’s human rights record, Ms. Brands Kehris acknowledged the efforts being made by the authorities in boosting essential health services to more than one million newborns, children and women last year with the help of the UN – and in ratifying the Convention on the Rights of Persons with Disabilities in December.

    Conscription abuses continue

    However, “serious concerns remain” about Eritrea’s system of indefinite forced military conscription, the UN official continued.

    The practice has long been linked to abusive labour, torture and sexual violence which continues to compel young people to escape from the country, Ms. Brands-Kehris insisted.

    Furthermore, “the punishment of families of draft deserters remains very common – an inhumane practice, against which no steps have been taken”, she said.

    Echoing previous disturbing reports requested by the Human Rights on Eritrea’s rights record, the UN official said that detention without trial “remains the norm” – with many politicians, journalists, religious believers and draft deserters held incommunicado.

    There is no evidence that impunity will be tackled for well-documented past human rights violations, the senior UN official said.

    In response for Eritrea, Habtom Zerai Ghirmai, Chargé d’affaires a.i. to the UN in Geneva, denied the accusations, calling them exaggerated and misleading.

    Sudan: We are looking into the abyss, Türk warns

    Next in the spotlight was the plight of Sudan’s war-ravaged people who have been subjected to appalling crimes by all parties to the conflict – some possibly constituting war crimes and other atrocity crimes.

    Today, more than 600,000 Sudanese “are on the brink of starvation”, said rights chief Volker Türk. “Famine is reported to have taken hold in five areas, including Zamzam displacement camp in North Darfur, where the World Food Programme has just been forced to suspend its lifesaving operations due to intense fighting.”

    Another five areas could face famine in the next three months and 17 more are at risk, he said, calling on all Member States to push urgently for a ceasefire and to ease the suffering of the Sudanese people.

    Presenting his Office’s annual report on the situation in Sudan, Mr. Türk noted that the armed conflict between rival militaries that erupted in April 2023 following the breakdown in a transfer to civilian rule had generated “the world’s largest humanitarian catastrophe”.

    The High Commissioner’s report details myriad violations and abuses committed in Sudan and underscores the need for accountability.

    ‘Utter impunity’

    “We are looking into the abyss. Humanitarian agencies warn that without action to end the war, deliver emergency aid, and get agriculture back on its feet, hundreds of thousands of people could die,” Mr. Türk insisted.

    He added that the spiralling situation in Sudan was “the result of grave and flagrant violations of international humanitarian and human rights law, and a culture of utter impunity”.

    “As the fighting has spread across the country, appalling levels of sexual violence have followed. More than half of reported rape incidents took the form of gang rape – an indication that sexual violence is being used as a weapon of war,” Mr. Türk explained.

    “Sudan is a powder keg, on the verge of a further explosion into chaos,” said the UN’s top human rights official.

    Responding on behalf of Sudan, Minister of Justice Moawia Osman Mohamed Khair Mohamed Ahmed, rejected allegations that the Sudanese Armed Forces (SAF) were responsible for any of the rights violations detailed in the High Commissioner’s report.

    Indifferent to suffering

    Sudanese civil society representative Hanaa Eltigani described multiple mass killings of civilians attributed to the Rapid Support Forces paramilitaries including in Geneina, their shelling of Zamzan displacement camp in North Darfur and other extreme rights abuses including gang rape and the forced recruitment of children, including South Sudanese refugees.

    In addition, the SAF “launched airstrikes and ground assaults, attacking Meneigo and Al-Igibesh villages in West Kordofan, bombing civilian areas in Nyala, South Darfur,” continued Ms Eltigani, Assistant Secretary-General of Youth Citizens Observers Network (YCON), insisting that while the suffering of her country’s people was “met with indifference, the flow of weapons [from abroad] continues unchecked”.

    The SAF also carried out executions in Al-Jazira, Ms. Eltigani maintained, “where victims were slaughtered or thrown alive into the Nile”.

    Taliban oppression deepens in Afghanistan

    Turning to Afghanistan, the Council then heard that the de facto authorities’ oppression and persecution of women, girls and minorities has worsened, with no signs of improvement. 

    “Some 23 million people, almost half the population, are in need of humanitarian assistance, a situation drastically worsened by the pauses and cuts to international aid,” said Special Rapporteur on Afghanistan Richard Bennett.

    The independent rights expert, who is not a UN staff member, warned that left unchecked, the Taliban was likely to “intensify, expand and further entrench its rights-violating measures on the people of Afghanistan, in particular women and girls and likely religious and ethnic minorities”.

    “The lack of a strong, unified response from the international community has already emboldened the Taliban. We owe it to the people of Afghanistan to not embolden them still further through continued inaction.”

    The Taliban seized power in 2021 and since then have passed a raft of laws that have severely stifled the freedoms of women and girls.

    These include banning women and girls from most classrooms, singing or speaking outside their homes, as well as from travelling without a male guardian.

    Institutionalised oppression

    Women were also barred from studying medicine in December. Windows in residential buildings have also been banned on the grounds that women could be seen through them.

    “Afghanistan is now the epicentre of an institutionalised system of gender-based discrimination, oppression, and domination which amounts to crimes against humanity, including the crime of gender persecution,” Mr. Bennett said, presenting his report. 

    Mr. Bennett urged States to ensure that any normalization of diplomatic ties with the Taliban should be dependent on demonstrated improvements in human rights.  

    “We must not allow history to repeat itself,” Mr. Bennett said. “Doing so will have catastrophic consequences in and beyond Afghanistan.”

    Independent rights experts are not UN staff, receive no salary for their work and are independent of any organisation or government.

    MIL OSI United Nations News –

    February 28, 2025
  • MIL-OSI Africa: European Investment Bank (EIB) backs Africa Finance Corporation $750 Million Climate Resilient Infrastructure Fund

    Source: Africa Press Organisation – English (2) – Report:

    CAPE TOWN, South Africa, February 27, 2025/APO Group/ —

    The European Investment Bank (EIB) has committed to join Africa Finance Corporation (AFC) (www.AfricaFC.org) in financing a $750 million Infrastructure Climate Resilient Fund (ICRF). This landmark initiative will accelerate climate adaptation and sustainable infrastructure across Africa.

    As part of this commitment, the EIB today confirmed it will invest $52.48 million in the Fund, which is managed by AFC Capital Partners (ACP), the asset management arm of AFC. ACP has already secured a $253 million commitment from the Green Climate Fund (GCF), marking GCF’s largest-ever equity investment in Africa. In addition, the Nigeria Sovereign Investment Authority (NSIA) and two private African pension funds have also committed to the Fund, demonstrating robust institutional backing on the continent and internationally.

    The Infrastructure Climate Resilient Fund aims to accelerate climate adaptation in Africa by embedding resilience measures at every stage of infrastructure development—from design and construction to operation. Using blended finance to de-risk private investment, the Fund also integrates innovative tools such as climate risk parametric insurance to enhance protection against climate-related risks and losses. In addition, the Fund will provide technical assistance to enhance the capacity of countries seeking climate risk assessment and adaptation, aligning with the European Union’s Global Gateway initiative and the UN Sustainable Development Goals.

    The EIB formally signed the agreement at the Finance in Common Summit (FICS) in Cape Town today, demonstrating the close collaboration between the EIB, AFC, and other strategic partners.

    “The EIB is committed to supporting private sector investment in climate-resilient infrastructure, especially in regions most vulnerable to climate change,” EIB Vice-President Ambroise Fayolle stated at the ceremony today. “This partnership with the Africa Finance Corporation and the launch of ACP’s Infrastructure Climate Resilient Fund are a significant step towards accelerating Africa’s green and digital transition and ensuring a sustainable future for all. The EIB’s investment is not just about the initial capital injection; it is also intended to have a multiplier effect by attracting more investors, reducing risk, showcasing successful projects, and promoting best practices in climate finance.”

    ACP’s fund aims to demonstrate that Africa can pursue a climate-resilient and sustainable development path by addressing market failures, mitigating environmental risks, strengthening logistics, trade, and industrialization, and accelerating the continent’s digital and energy transition.

    “This Fund is crucial for bridging the funding gap for climate adaptation in Africa,” Samaila Zubairu, AFC’s President & CEO, said at the launch event today. “By focusing on climate-resilient infrastructure, we are not only securing our economic future but also creating opportunities for sustainable growth, and supporting job creation across the continent. We are glad to partner with the EIB and other investors who are committed to increasing the impact of climate finance.”

    Developing Climate-Resilient Infrastructure

    The ICRF focuses on Africa, the world’s most climate-vulnerable continent, by investing in infrastructure that can withstand the impacts of climate change while reducing carbon emissions. The Fund prioritizes resilient, low-carbon solutions across transport and logistics, clean energy, digital infrastructure, and industrial development, ensuring sustainable growth.

    ACP’s investment strategy evaluates climate risk across both physical and transition dimensions, including emissions and climate governance. The Fund is committed to ensuring that infrastructure assets are designed, built, and operated to withstand and adapt to evolving climate conditions. To achieve this, ACP will conduct rigorous climate risk screenings and assessments for every investment, establishing a new benchmark for selecting and implementing the most effective adaptation solutions.

    The Fund leverages a powerful partnership between three major institutions—EIB, AFC, and GCF—uniting their expertise, capital, and commitment to climate resilience. Aligned with the EIB’s Climate Bank Roadmap, ACP will draw on the proven track records and deep technical expertise of both EIB and AFC in infrastructure investment, creating a compelling platform to attract additional investors. Through this strategic collaboration, the $750 million fund is poised to unlock up to $3.7 billion in financing, accelerating the deployment of climate-resilient infrastructure across Africa.

    The GCF will play a critical role by providing technical assistance for due diligence and climate resilience monitoring while also covering the first-loss tranches on new investments, effectively de-risking projects and attracting private capital.

    Once operational, the Fund aims to invest in a diversified portfolio of 10 to 12 projects across Africa. It will also assist countries and entities in capacity building and deployment of climate risk assessment and adaptation solutions.

    Further Information

    Leveraging Partnerships

    The Fund is built on a powerful partnership between three major institutions: the European Investment Bank (EIB), Africa Finance Corporation (AFC), and the Green Climate Fund (GCF). Through its asset management arm, AFC Capital Partners (ACP), AFC is collaborating with the EIB to deploy the Fund, leveraging both institutions’ proven track records and technical expertise in infrastructure investment to attract additional investors. The partnership is further strengthened by the GCF’s critical role in providing first-loss protection and technical assistance, ensuring a robust framework for scaling climate-resilient infrastructure across Africa.

    Mobilizing Climate Finance

    The EIB’s $52.48 million commitment is a strategic step toward the Fund’s $750 million target, aimed at catalysing additional investments from both private and public sector partners into climate-resilient infrastructure. This commitment is expected to help mobilize approximately $3.7 billion in total financing, driving tangible, on-the-ground impact across Africa.

    Focusing on EIB’s core priorities agreed by ECOFIN

    The EIB investment will support the climate bank ambition to accelerate international action on adaptation and resilience. With an expected climate action and environmental sustainability contribution of about 80%, the operation will contribute to EIB’s objectives to dedicate (i) 50% of its financing toward climate action and environmental sustainability and (ii) 15% of its financing toward to climate adaptation by 2025. The Fund supports three of the five EU Global Gateway thematic priorities: i) climate and energy, ii) transport and iii) digital.

    Addressing Market Failures

    The EIB investment in ACP’s Infrastructure Climate Resilient Fund is intended to address the scarcity of equity capital for greenfield infrastructure projects, and to help overcome other market failures such as the lack of incentives for green energy solutions or market failures related to transport accessibility and digital connectivity. The Fund also aims to improve the efficiency of logistics and trade corridors and contribute to the digital and energy transition.

    Supporting the Green and Digital Transition

    By investing in clean energy and digital infrastructure, the Fund aims to support the broader green and digital transition in Africa and contribute to diversification and security of energy supply, as well as improved access to digital connectivity.

    Enhancing Capacity for Climate Risk Management

    ACP’s Infrastructure Climate Resilient Fund will provide technical assistance to build capacity for climate risk assessment and adaptation, with a focus on integrating climate risk considerations into project design and construction.

    Creating Jobs and Economic Opportunities

    Projects backed by ACP’s Infrastructure Climate Resilient Fund will contribute to job creation, economic growth, and improved quality of life in the target regions. These projects are expected to generate significant temporary employment during construction as well as permanent jobs during operation.

    Key projects in the ICRF pipeline, such as the Lobito Corridor, underscore AFC’s pivotal role in driving transformational and climate-resilient infrastructure investments across Africa. As the lead developer of the project, AFC is spearheading efforts to enhance regional connectivity and economic integration through the corridor, which is set to become a critical trade and logistics route linking Angola, the Democratic Republic of Congo (DRC), and Zambia.

    The Lobito Corridor is expected to unlock vast economic opportunities by facilitating efficient transportation of critical minerals, agricultural goods, and other commodities, reducing dependency on other congested export routes and fostering industrial development along the wider corridor. Alongside partners including the European Union, the United States Government, the African Development Bank and the governments of Angola, the Democratic Republic of Congo and Zambia, AFC is working to ensure the corridor is developed with climate resilience in mind, integrating sustainable infrastructure solutions that can withstand environmental challenges while promoting long-term economic growth.

    Beyond Lobito, the ICRF pipeline includes other strategic projects across transport, clean energy, and digital infrastructure, all designed to attract institutional investment and address Africa’s pressing infrastructure gap. Through these initiatives, ACP continues to highlight its commitment to mobilizing capital for projects that deliver both financial returns and lasting developmental impact.

    The investments backed by the Fund will actively promote the adoption of Environmental, Social, and Governance (ESG) best practices, including gender equality, protection, and anti-discrimination policies.

    De-risking Investments

    The Fund’s structure, with support from the EIB and other institutions like the Green Climate Fund (GCF), aims to de-risk climate investments.

    The GCF is providing grant funding to help with due diligence and monitoring of climate resilience, which can make the investments more attractive to other investors. Additionally, the Fund will integrate innovative climate risk insurance to complement traditional indemnity programs.

    Aligning with Global and Regional Objectives

    The EIB investment aligns with EU strategies, the African Union’s Agenda 2063, and the UN Sustainable Development Goals, and aims to support the implementation of Nationally Determined Contributions.

    MIL OSI Africa –

    February 28, 2025
  • MIL-OSI USA: Atmospheric Rivers Disrupt Traditional Rainfall Predictions in the Southwest

    Source: US Geological Survey

    Breadcrumb

    1. News

    Atmospheric Rivers Disrupt Traditional Rainfall Predictions in the Southwest

    In 2023, La Niña was supposed to bring dry conditions to the Southwestern U.S. Instead, California experienced one of its rainiest seasons on record. A new study supported by the Southwest CASC reveals how atmospheric rivers can disrupt traditional El Niño/La Niña weather predictions.

    New research from UC San Diego’s Scripps Institution of Oceanography, supported by the Southwest CASC, challenges traditional reliance on seasonal El Niño-Southern Oscillation (ENSO) patterns for predicting precipitation in the Southwestern United States. ENSO typically brings wet (El Niño) or dry (La Niña) conditions to the region, but 2023 – a La Niña year – was California’s 10th wettest year on record. 

    The new study points to atmospheric rivers – powerful air currents carrying large amounts of water vapor – as the driving force behind these precipitation anomalies. Analyzing over 70 years of weather data, researchers found that atmospheric rivers explained 70% of anomalous years (when precipitation did not match ENSO expectations) and, in some years, accounted for up to 65% of annual precipitation in Northern California and 40% in Southern California. In 2023, nine atmospheric rivers brought significant rainfall to the region, altering the usual dry influence of La Niña. 

    While ENSO patterns are predictable months in advance, atmospheric rivers can currently only be forecast about 3 weeks ahead of time, making it more difficult to anticipate how they may affect precipitation patterns each year. Climate change may increase the role of atmospheric rivers in determining annual precipitation in the Southwestern United States, potentially reducing the reliability of El Niño and La Niña predictions. Researchers highlight the need to improve atmospheric river forecasting, and to integrate those forecasts with seasonal ENSO predictions to help water managers, farmers, and policymakers make informed decisions on reservoir planning, water allocation, and agricultural planning. 

    MIL OSI USA News –

    February 28, 2025
  • MIL-OSI Canada: Investing in the Inuit economy and protecting Canada’s Northern ecosystems

    Source: Government of Canada – Prime Minister

    There is no relationship more important to Canada than the one it has with Indigenous Peoples, the original inhabitants and stewards of lands and waters in Canada since time immemorial. We remain committed to working with Indigenous partners to advance reconciliation, recognizing the role of Indigenous leadership in environmental stewardship, and helping ensure the world we leave to future generations is safe and healthy.

    Today, the Prime Minister, Justin Trudeau, was joined by the President of the Qikiqtani Inuit Association (QIA), Olayuk Akesuk, to announce the signing of the SINAA Project Finance for Permanence Agreement between the Government of Canada, the QIA, The Pew Charitable Trusts, and the Aajuraq Conservation Fund Society.

    Contributions to the SINAA Agreement include a planned $200 million from the Government of Canada, along with $70 million pledged from philanthropic donors in Canada and around the world. Over the next 15 years, these investments are projected to attract $318 million to the Qikiqtani region, with more jobs, opportunities, and Inuit-led stewardship of lands and waters. The agreement will also make meaningful progress in advancing the goal to conserve 30 per cent of oceans in Canada by 2030, adding an additional 3.68 per cent contribution to Canada’s water-based ecosystems.

    This milestone agreement in advancing Inuit-led conservation and reconciliation includes a new conservation plan to establish a robust and lasting network of proposed Inuit-led and protected water and land conservation areas in Canada’s Arctic. Protecting these areas will ensure the long-term health and sustainability of ecosystems, while safeguarding the well-being and ways of life of Inuit communities in the region. In Inuktitut, SINAA means “the floe edge”, where the open sea meets the frozen sea, becoming a vibrant ecosystem of marine life. With the SINAA Agreement, we will strengthen existing protected and conserved ecosystems through enhanced partnership with Inuit governance.

    To further support economic opportunities for the Qikiqtani Inuit, Fisheries and Oceans Canada and the QIA have signed the Qikiqtani Fisheries Agreement. The agreement provides funding over the next 10 years to support both acquiring access to offshore commercial fisheries, vessels and gear, and training to participate in offshore commercial fishing in adjacent waters.

    With these investments, we are building an economy based on conservation, investing in community infrastructure like the Arctic Bay Small Craft Harbour, and creating jobs where Inuit knowledge will be leveraged and valorized to protect Northern ecosystems.

    As one of the most biodiverse areas of the Arctic, the Qikiqtani region is home to some of the world’s most iconic species, including narwhals, whales, and polar bears. With today’s landmark agreement, we reaffirm our commitment to working alongside Inuit and Northern partners to protect these precious ecosystems that are so deeply intertwined with Inuit culture, economy, and well-being. Together, we are ensuring biodiversity and livelihoods are sustained for generations to come.

    Quotes

    “The Canadian Arctic has been home to vibrant ecosystems and Indigenous communities for generations. With today’s announcement, we are strengthening our commitment to protecting lands, waters, and wildlife, honouring Inuit-led conservation efforts, and walking forward on the shared path of reconciliation. Working together with provinces, territories, Inuit communities, and other partners, we can build a future where traditions, stories, and ways of life are preserved and celebrated.”

    “Today, we are reaching a historic milestone in Canadian history. The agreement signed today sets the foundations for Inuit-led and governed conservation efforts to protect our culture, lands, waters, and wildlife. Today is a proud day, and I thank the Government of Canada, donors, and the philanthropic community for seeing our vision and working with us to make it a reality.”

    “Canada is proud to be part of the SINAA Agreement advancing Inuit-led conservation in the Arctic. This agreement marks an important milestone in partnership and honours the vital role of Inuit stewardship in safeguarding the environment. Through this important partnership, we are supporting the well-being of Inuit in the Qikiqtani region today, while conserving ecosystems for our children and grandchildren.”

    “Nature and oceans are defining elements of Canada’s identity. Protecting them is crucial not only in the fight against biodiversity loss and climate change, but also in preserving our deep connection to nature and building a sustainable future – one where Indigenous traditions and knowledge are at the heart of our conservation efforts. We are proud to work with Inuit partners and territorial governments through the SINAA Agreement to advance new and enhanced Inuit-led marine conservation areas in the Arctic, ensuring that the region’s diverse and unique marine ecosystems can thrive.”

    Quick Facts

    • The Project Finance for Permanence (PFP) model provides for multi-partner investments and sustainable financing for large-scale conservation and sustainable development projects. These initiatives bring together Indigenous organizations, governments, and the philanthropic community to identify shared goals for protecting nature and ultimately halting biodiversity loss while advancing community well-being and reconciliation with Indigenous Peoples.
    • In recent years, the Government of Canada has made historic investments in Indigenous-led conservation projects, including through initiatives like the Indigenous Guardians program.
    • In December 2022, during the 15th Conference of the Parties (COP15) to the Convention on Biological Diversity in Montréal, Quebec, the federal government pledged to deliver up to $800 million in support of up to four Indigenous-led PFP initiatives. Today’s SINAA announcement is the third of these initiatives, following the launch of the Great Bear Sea PFP and the NWT Our Land for the Future PFP initiatives last year.
    • The SINAA Agreement (formerly the Qikiqtani PFP) is led by the Qikiqtani Inuit Association (QIA) and aims to conserve up to 3.68 per cent of the marine environment in Canada in addition to strengthening long-term existing protected areas that already contribute 8.60 per cent toward marine conservation targets.
    • Fisheries and Oceans Canada has collaborated with Parks Canada and Environment and Climate Change Canada to advance this innovative funding model where a minimum of one dollar will be contributed by philanthropic organizations for every four dollars contributed by the federal government. This includes a planned $200 million of federal funds plus $70 million pledged from philanthropic organizations to support Inuit-led conservation in Nunavut.
      • Together, these contributions will be managed and invested by the Aajuraq Conservation Fund Society, a Canadian-led society governed by members appointed by QIA and The Pew Charitable Trusts to generate durable, long-term financing for ongoing conservation and stewardship activities led by QIA.
    • The SINAA Agreement represents an important step in Inuit-led conservation in the Qikiqtani region. Key components of the SINAA Agreement include: 
      • A conservation plan that proposes several new protected and conserved areas and enhanced protections for existing areas.
      • Support for the Inuit stewardship (Nauttiqsuqtiit) program enabling Inuit partners to have eyes and ears on the water, land, and ice.
      • Support for Nauttiqsuqtiit Conservation Centres so that Inuit stewards have the proper equipment and work spaces to be stewards of the water, land, and ice.
      • Support for Inuit-led regional governance so that Inuit partners can implement an integrated and regional vision for conservation that takes into consideration local and regional perspectives along with Inuit knowledge.
    • The Government of Canada, QIA, and The Pew Charitable Trusts have engaged with the Government of Nunavut throughout the planning of the initiative and will continue to engage through the implementation, specifically through advancing the conservation plan.
    • Grounded in science, Indigenous knowledge, and local perspectives, Canada is committed to working with partners across the country to conserve 30 per cent of lands and waters by 2030.

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    MIL OSI Canada News –

    February 28, 2025
  • MIL-OSI Economics: IPAA Applauds Senate Passage of Congressional Review Act Resolution to Nullify Biden Methane Tax Regulations

    Source: Independent Petroleum Association of America

    Headline: IPAA Applauds Senate Passage of Congressional Review Act Resolution to Nullify Biden Methane Tax Regulations

    Feb 27, 2025 IPAA Applauds Senate Passage of Congressional Review Act Resolution to Nullify Biden Methane Tax Regulations

    WASHINGTON – The Independent Petroleum Association of America (IPAA) issued the following statement following the Senate passage of H.J.Res.35 which through the Congressional Review Act process disapproves of the Biden Environmental Protection Agency’s (EPA) methane emissions fee on oil and natural gas facilities which will lead to higher prices for consumers, reduced domestic energy production, and increased American reliance on foreign energy sources.

    IPAA President & CEO Jeff Eshelman: “The Independent Petroleum Association of America (IPAA) applauds Sen. John Hoeven for his leadership in overturning the EPA’s Waste Emissions Charge (Methane Tax) regulations. This Congressional Review Act (CRA) resolution approved by the Senate today allows Congress to nullify the regulations the Biden Administration established to implement the misguided methane tax. The Biden Administration and Democrats in Congress passed the methane tax to single out and punish the oil and natural gas industry despite its already burdensome EPA regulatory framework. The tax was passed without appropriate understanding of its impact or industry safeguards. IPAA has always opposed the methane tax and believe it is simply a tax designed to hamper American oil and gas production.  With the passage of H.J.Res.35 in both the House and Senate, IPAA urges quick action by President Trump to sign this resolution and will work with his Administration to eliminate this unnecessary tax on American oil and natural gas producers as soon as possible.”

    IPAA also supports legislation led by Senator Ted Cruz (R-TX) and Congressman August Pfluger (R-TX-11) to repeal the Methane Tax.

    MIL OSI Economics –

    February 28, 2025
  • MIL-OSI Global: Why Freetown’s celebrated tree planting scheme won’t work for other African cities, or the planet

    Source: The Conversation – UK – By Milo Gough, Lecturer in African Studies, University of Oxford

    More than a million trees have been planted in the city of Freetown in Sierra Leone since 2020. This reforestation scheme, known as “FreetownTheTreeTown”, has been celebrated for its innovative approach to climate action, with ambitious plans to plant another 5 million trees by 2030 and 20 million more by 2050.

    A global network of mayors known as the C40 Cities and other urban development experts have called this a “highly replicable” solution for environmental crises across urban Africa.

    Reforestation helps Freetown cope with excess heat, annual seasonal floods, landslides and other environmental problems. Because of its geography, squeezed between wooded mountains and coastline, and widespread poverty, the city is one of the most vulnerable in the world to the effects of the climate change.

    Deforestation of Freetown’s mountains for wood, charcoal and housing space led to a landslide in 2017 that killed 1,100 people and left at least another 3,000 people homeless. FreetownTheTreetown is a response to this disaster.




    Read more:
    Sierra Leone mudslide was a man-made tragedy that could have been prevented


    There are also important historical contexts. I’ve conducted research into the colonial history of Freetown and the changing historical meaning of its trees. From the spiritual meaning of trees in Indigenous west African cultures, through to their use in colonial planning schemes, trees in Freetown have been central to political struggles over the urban landscape.

    Tree planting should not be viewed simply as a generic social good. Trees are embedded in wider structures of power. From colonial-era tree planting, which aimed to reorganise Freetown into a European style city, to the 21st century’s green capitalism – in which tree “tokens” have become commodities for their marketable “carbon offset” – trees are far from apolitical.

    Tree planting projects alone cannot solve environmental problems in African cities. As the world heats up, reliance on fossil fuels must be reduced. Green capitalism’s tree planting schemes won’t cut greenhouse gas emissions at source.

    Climate solutions

    FreetownTheTreeTown is organised through an app, TreeTracker, used by community growers who plant and care for saplings that have been grown in a nursery. They use the app to tag the geographical location of each new tree and track tree growth with photographs.

    The community growers, largely women and young people, receive payments from the city administration once every quarter in the form of tokens that can be exchanged for cash. Thanks to this community, the project has achieved a high tree survival rate of over 80%.

    Inside Freetown’s tree planting scheme.

    Since 2020, this project has received almost US$3 million (£2.4 million), largely from the World Bank and the Global Environmental Facility.

    But the project is supposed to start covering its own costs through selling carbon offset tokens to foreign nations and companies. Buyers will buy these to “cancel out” their own carbon emissions. A polluting airline in the US, for example, could claim it has reduced its greenhouse gas emissions if it buys carbon offset tokens from FreetownTheTreeTown.




    Read more:
    There aren’t enough trees in the world to offset society’s carbon emissions – and there never will be


    Carbon offset schemes have been criticised by academics and journalists for overstating the rate and speed at which they can reduce overall greenhouse gas emissions. They’ve been accused of distracting attention from the necessary and difficult work of transitioning away from polluting energy sources.

    Charcoal is the most important product of the deforestation of Freetown’s mountainous peninsula because the city’s residents use it as cooking fuel. It is, however, highly polluting. People living in informal communities are encouraged to move to cleaner cooking fuels. Some briquettes are even made from human waste. Freetown is genuinely trying to reduce its extremely low carbon emissions.

    Tensions in tree town

    Tension between the conservation and exploitation of Freetown’s mountain forest has existed for centuries. Freetown was established by British colonists in 1792 as a site for the resettlement of formerly enslaved people from across west Africa. Mountain forests were cut down and turned into timber for the board houses of Freetown.

    My research into the late 19th century history of Freetown has revealed that an enormous iroko tree with a trunk circumference of over 15 metres was a place of great spiritual and ritual significance in the area of Brookfields.




    Read more:
    Bringing forests to the city: 10 ways planting trees improves health in urban centres


    Many formerly enslaved people from Yorubaland, in what is today south-western Nigeria, believed iroko trees were inhabited by powerful spirits. Witches were thought to hold meetings around them.

    The Brookfields iroko tree was feared. But it was also respected. Processions of the Bondo, an all-female secret society, visited the tree with offerings, such as corn and pieces of cloth.

    The colonial government planted new trees to demarcate the gridded streetscape of Freetown. But Freetonians did not like the new trees. They suspected them of harbouring mosquitoes and snakes. Twenty years after the first planting, most had been cut down by the city’s residents. The colonial government attempted to overwrite west African understandings of trees by imposing a new order.

    Tree planting schemes must pay close attention to histories of government-led dispossession if they are to successfully transform cities. FreetownTheTreeTown has begun to tackle this history head on by co-creating this reforested city with its communities. This is important work. But, there must be caution about simply transplanting the technical solutions from Freetown to other cities across Africa.


    Don’t have time to read about climate change as much as you’d like?

    Get a weekly roundup in your inbox instead. Every Wednesday, The Conversation’s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. Join the 40,000+ readers who’ve subscribed so far.


    Milo Gough has received funding from the Arts and Humanities Research Council through CHASE DTP.

    – ref. Why Freetown’s celebrated tree planting scheme won’t work for other African cities, or the planet – https://theconversation.com/why-freetowns-celebrated-tree-planting-scheme-wont-work-for-other-african-cities-or-the-planet-247254

    MIL OSI – Global Reports –

    February 28, 2025
  • MIL-OSI: A dual challenge for the battery industry: ramping up production while innovating game-changing chemistries for the future

    Source: GlobeNewswire (MIL-OSI)

    Press contact: 
    Florence Lièvre  
    Tel.: +33 1 47 54 50 71  
    Email: florence.lievre@capgemini.com

    A dual challenge for the battery industry: ramping up production while innovating game-changing chemistries for the future

    • Battery innovation is fueling industry transformation, but overcoming current production ramp-up challenges will be crucial for European and US manufacturers
    • Lithium-ion batteries currently dominate due to their proven performance, scalability, and well-established supply chain, while next-generation batteries are gaining traction
    • 76% of manufacturers will need to upgrade or build new production lines to support the future generation of battery cells

    Paris, February 27, 2025 – The Capgemini Research Institute’s report ‘The battery revolution: Shaping tomorrow’s mobility and energy’, published today, shows that batteries are transforming existing industries and enabling the emergence of new business models. However, despite the surging demand for Electric Vehicles (EVs) and energy-storage solutions, the future of batteries depends on overcoming a series of complex challenges across the entire value chain, from securing sustainable raw materials and optimizing manufacturing processes to advancing recycling capabilities.

    According to the new report, the battery industry is reaching an inflection point, driven on the one hand by the need for higher energy density, faster charging times, improved safety, greater sustainability, and, on the other, the need for manufacturers to reduce costs.

    While batteries are playing a critical role in decarbonizing carbon-intensive mobility and driving the renewable energy transition1, the industry is facing series of challenges that have wide ranging implications for scaling production, gigafactory industrialization and ramp-up, economic viability, and supply chain constraints.

    Battery technology is constantly evolving to improve performance and reduce costs
    While almost all (98%) battery manufacturers surveyed produce lithium-ion batteries (using liquid electrolyte), the industry is actively exploring alternative chemistries to support electric mobility and accelerate energy storage. Amongst them, solid-state batteries (using solid electrolyte), represent a major shift in battery technology, primarily for EVs. They answer the need for improved performance owing to their potentially higher energy densities, faster charging times, and improved safety compared with traditional lithium-ion batteries.

    “Innovation is driving a sustainable and competitive battery industry, with advancements in technologies and alternative chemistries improving performance and longevity. At this transformative time, while European and North American manufacturers are navigating production ramp-ups and exploring next generation of batteries, a solid and scalable digital foundation will be crucial for the industry’s future,” said Pierre Bagnon, Global Head of Intelligent Industry Accelerator at Capgemini. “Data and digital technologies can enhance the entire battery value chain, optimizing lifecycle management from quality control to waste management and recycling. Equally, collaboration within an innovation ecosystem that brings together all players and regulators is vital to continue the industry’s journey towards a battery-driven sustainable future.”

    Advances will enable new business models but not without challenges
    According to the survey, batteries are enabling new business models in the mobility industry to make EVs accessible to a broader range of consumers: a majority (around 64%) of mobility players are exploring battery swapping; nearly two-thirds of automotive organizations are considering battery-leasing and over half Battery-as-a-Service (BaaS) model that allows EV owners to lease or rent their batteries, rather than buy them. However, the success of these business models depends heavily on the implementation of standards, battery performance notably regarding longevity, adequate infrastructure, and economies of scale.

    In the energy and utilities sector, two in five organizations say they are integrating batteries with renewable energy systems to optimize energy storage and usage, with most of them (69%) currently offering or planning to offer BaaS solutions. However, key challenges remain; while a battery is considered an expensive asset, the electricity it stores is relatively cheap. Furthermore, most organizations emphasize the lack of robust grid infrastructure and advanced control systems (65%); the need for multiple battery types to facilitate both short-term and long-term storage solutions (61%) and for open performance standards to ensure reliability and transparency (59%).

    Beyond the automotive and energy sectors, multiple industries are rapidly integrating batteries into their operations: three in five of the organizations surveyed stated that battery innovation will impact fleet operators and heavy transportation in the next 5-10 years. Disruptions are also expected in aviation and shipping. Innovations in these industries include battery-powered eVTOLs (Electric Vertical Take-off and Landing), heavy-duty vehicles, and electric ships on short sea routes.

    Overcoming production ramp-up challenges with scalable digital foundations
    The battery industry is facing a number of complex and pressing challenges. Over half of battery manufacturers cite time required to build and ramp up gigafactories and difficulties in securing a stable supply chain for battery components and materials (respectively 59% and 53%). Uncertainty, around economic viability and profitability, appears as a key concern to scaling production.

    The scarcity of experienced talent also represents a significant challenge for the battery industry, with 60% of organizations facing skills shortages in both battery technology and manufacturing. Expertise gaps extend beyond specialized skills and encompass data scientists and manufacturing engineers who can analyze and correlate production data with battery performance, enabling process optimization and defect reduction.

    While batteries are key to decarbonizing carbon-intensive mobility and driving the renewable energy transition, only one in three battery manufacturers surveyed have taken meaningful steps toward establishing a sustainable circular economy.

    A majority (67%) of respondents acknowledge that data and digital technologies are crucial to the industry’s future. However, digitalization among battery manufacturers is currently low, at just 17% and data usage remains minimal in sustainability-related fields. In Europe, a Digital ‘battery passport’2, setting high environmental standards for battery production and recycling, will enable suppliers and OEMs to make informed decisions by considering the complete lifecycle of battery manufacturing.

    To read the full report: LINK

    Report Methodology
    The Capgemini Research Institute surveyed 750 senior executives from large battery, automotive, and energy and utilities organizations across 15 countries in North America, Europe, and APAC. The survey findings are complemented by in-depth discussions with 22 experts from battery, automotive, and energy and utilities sectors. The organizations surveyed are significant players in their respective segments, including battery manufacturers with annual revenue exceeding $50 million; energy and utilities firms with revenues over $1 billion (except those from Sweden and Norway, whose revenue exceeds $500 million); and automotive manufacturers with revenue above $1 billion (excluding two- and three- wheeler original equipment manufacturers [OEMs] with revenue over $300 million). The global survey was conducted in September-October 2024.

    About Capgemini
    Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, generative AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2024 global revenues of €22.1 billion.

    Get The Future You Want | www.capgemini.com

    About the Capgemini Research Institute
    The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom and the United States. It was ranked #1 in the world for the quality of its research by independent analysts for six consecutive times – an industry first.

    Visit us at https://www.capgemini.com/researchinstitute/


    1 According to IEA, batteries account for 90% of the Net Zero Emissions by 2050 Scenario (NZE Scenario), with 60% of CO2 emissions reductions to be made in the energy sector by 2030 associated with batteries – Source: IEA, “Batteries and secure energy transitions,” April 2024.
    2 From February 2027, EVs sold within the EU must be equipped with ‘battery passports’ that provide detailed information on battery composition, including sources of key materials, carbon footprint, and recycled content.

    Attachments

    • Infographic-Future-Of-Batteries_Report
    • 2025_02_27_ Capgemini_Press Release_Future of Batteries report

    The MIL Network –

    February 28, 2025
  • MIL-OSI United Kingdom: Beach recycling underway to strengthen Norfolk flood protection

    Source: United Kingdom – Executive Government & Departments

    Press release

    Beach recycling underway to strengthen Norfolk flood protection

    An expected 14,000 tonnes of sand and shingle will be moved to protect 800 homes and 4,000 caravans.

    Work is underway to bolster natural flood defences along the west coast of Norfolk as part of their yearly renewal.  

    Beach recycling will see an expected 14,000 tonnes of sand and shingle will be moved around the beach from where it’s been deposited by the tidal movement of the sea. 

    The aggregate is taken north to Heacham and South Hunstanton to restore the shingle ridge along a 5km stretch of coastline.

    The shingle ridge is a natural flood defence protecting more than 800 properties and 4,000 caravans. The recycling will be completed in time for ground nesting birds and tourists to arrive. 

    To move thousands of tonnes of material, the Environment Agency uses three 30-tonne dumper trucks, two bulldozers and an excavator. 

    The recycling follows a report into the shingle ridge which was published in Summer 2024. The Environment Agency is set to begin updating the 2015 Wash East Coast Management Strategy (WECMS) for Hunstanton to Wolferton Creek later this year. The updated strategy will further assess the latest monitoring data and reflect the findings of the Initial Assessment report.

    Sadia Moeed, Area Director for the Environment Agency said:

    “Beach recycling is an incredibly important part of the work we do on the Norfolk coast. It’s vital the shingle ridge is kept in good condition to help reduce the risk of flooding to the communities behind it.

    “It’s also important that property owners continue to refrain from digging into the ridge and approach the us if they wish to carry out works within 16m of it. This will also help preserve the integrity of the ridge and its ability to perform as a natural flood defence.

    “People should know their flood risk and sign up for free flood warnings by going to https://www.gov.uk/check-flood-risk or calling Floodline on 0345 988 1188. You can also follow @EnvAgencyAnglia on Twitter for the latest flood updates.”‎

    Both Natural England and the RSPB are consulted on the beach recycling to preserve the coastline’s environmental importance. The work is funded by the East Wash Coastal Management Community Interest Company which raises funds from the local community, caravan park owners and landowners. Anglian Water and the Borough Council of Kings Lynn & West Norfolk also contribute to the project.

    Cllr Sandra Squire, Cabinet Member for Environment at the Borough Council of King’s Lynn & West Norfolk, said:

    “Restoring the shingle ridges between Hunstanton and Snettisham helps to protect people and wildlife living on the coast in west Norfolk.

    “This important annual beach recycling programme, which is an effective means of undertaking important flood defence work to maintain the defences along the Snettisham to Hunstanton coastline, makes a real difference to the communities in the area.”

    Notes to editors

    • For more information about last summer’s report please visit: Report released into shingle ridge on West Norfolk coast – GOV.UK
    • Pictures credit: The Environment Agency

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    Updates to this page

    Published 27 February 2025

    MIL OSI United Kingdom –

    February 28, 2025
  • MIL-OSI USA: State Approves 25th Renewable Energy Project in Past 4 Years

    Source: US State of New York

    Governor Kathy Hochul today announced that New York State has permitted 25 large-scale renewable energy projects over the last four years, representing 3.6 gigawatts of new solar and wind power in the state’s clean energy pipeline. The New York State Office of Renewable Energy Siting and Electric Transmission (ORES) has issued a final siting permit for the White Creek Solar project to develop, construct, and operate a 135-megawatt (MW) solar array in the towns of York and Leicester in Livingston County. This marks the 20th clean energy project approved by ORES since 2021, when it was created to accelerate permitting for renewable energy generation.

    “The White Creek solar array in Western New York exemplifies New York State’s progress toward creating a clean energy economy,” Governor Hochul said. “With refined siting protocols through the establishment of ORES four years ago, New York is expediting permitting for clean energy projects to achieve a clean energy economy while creating good-paying jobs that benefit communities throughout the state.”

    The new solar facility will consist of the solar array and associated support equipment, along with an interconnection substation, fencing, access roads and an operations and maintenance building. The facility will interconnect to the New York electrical grid via a new point of Interconnection, located on a Rochester Gas & Electric transmission line.

    The host community benefits include the creation of permanent jobs during operations, local property tax spending, local and regional spending, and host community agreements with the towns of York and Leicester, all without significantly increasing costs to local authorities, school districts, or emergency services. Benefits will also include public road enhancements, increased tax revenues to fund local infrastructure and public services, schools and other community priorities.

    Office of Renewable Energy Siting and Electric Transmission Executive Director Zeryai Hagos said, “With the issuance of the siting permit for White Creek Solar, ORES continues to advance New York’s nation-leading clean energy policies while being responsive to community feedback and protecting the environment.”

    The Office’s decision for this facility follows a detailed and transparent review process with robust public participation to ensure the proposed project meets or exceeds the requirements of Article VIII of the New York State Public Service Law and its implementing regulations. The solar facility application was deemed complete on July 21, 2024, with a draft permit issued by the Office on September 13, 2024.

    White Creek Solar is the 20th siting permit issued by ORES since 2021, which cumulatively represents over 2.9-gigawatt (GW) of new clean energy. The solar power meaningfully advances New York’s clean energy goals while establishing the State as a paradigm for efficient, transparent, and thorough siting permitting process of major renewable energy facilities.

    Today’s decision may be obtained by going to the ORES website at https://ores.ny.gov/permit-applications.

    New York State’s Climate Agenda

    New York State’s climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

    MIL OSI USA News –

    February 28, 2025
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