USE OF DIGITAL MEDIA FOR THE ISSUE OF INVOICES AND OTHER DOCUMENTS IN VENEZUELA

The National Tax Administration in Venezuela recently decided to regulate the use of digital media for the issuance of invoices and other tax documents, aiming at adapting taxation to new technologies. 

The application of the technology to invoicing must be implemented by certain entities, which must file a request for authorization with the National Superintendence of Internal Taxes of the National Tax Administration; that is, said entities must be duly authorized. To that end, their request must be accompanied by the requirements established in the new tax regulation and will be approved or denied by the Superintendence in a period of 30 business days.

The entities subject to the obligation to implement the digital invoicing, according to the new tax regulation, are the following: (i) entities that perform commercial operations solely through electronic means or web portals; and (ii) entities bound to use tax machines and which simultaneously perform commercial operations through electronic means or web portals. In addition, the entities that are not subject to use tax machines may choose to use this type of invoicing.

A three-month transition period was established for implementing this type of invoicing, for purposes of adaptation to the same and in order to meet the requirement of request for authorization from the National Tax Administration.

With the implementation of this new regulation, the National Tax Administration seeks to couple tax rules on invoicing with the technological development of the last years, aiming to adapt the national taxation to the new economic and technological realities and assure a greater efficiency in tax processes.

Mexico’s Digital Transformation: Paving the Way for Investment and Growth

In the digital era, optimizing government processes through information and communication technologies enhances government-citizen interaction, reduces corruption, improves administrative procedures, and drives national and foreign investment.

In this context, Mexico's federal government, led by President Claudia Sheinbaum, announced the creation of the Digital Transformation and Telecommunications Agency (Agency) in late 2024. Its mission is to modernize and unify the government's technological infrastructure, prioritizing digital transformation and administrative simplification.

As part of this strategy, the National Law for Simplification and Digitalization was introduced in January 2025, aiming to reduce government-procedure wait times by 50% through the digitalization of 80% of citizen services. This initiative not only seeks to enhance government-citizen interactions, but also removes barriers for domestic and foreign investors, aligning with international commitments such as the UN Sustainable Development Goals and the Trade Agreement between United States, México and Canada (USMCA).

José Antonio Peña Merino, head of the Agency stated that this strategy will extend beyond the federal level. Through the National Center for Public Technology, it will be expanded to state and municipal governments, fostering coordination to unify and expand the catalog of digital services nationwide.

National Digital Investment Window: Streamlining Business Establishment in Mexico

As part of this digitalization strategy, the federal government announced the launch of four Strategic National Projects aimed at modernizing and streamlining key procedures across various sectors:

National Civil Registry Platform National Cadastral Platform National Platform of the Public Registry of Property; and; Digital Investment Window

Among these projects, the National Digital Investment Window stands out as a key initiative, aiming to integrate and centralize all necessary procedures for establishing and operating a business in Mexico. This fully digital and interconnected platform, spanning federal, state, and municipal levels, is designed to streamline business incorporation by reducing requirements, shortening processing times, and facilitating the creation of new corporations nationwide.

One of the key features of this platform will be the implementation of single digital files, enabling individuals and companies to manage multiple procedures without repeatedly uploading documents for each process. The Digital Investment Window will support strategic sectors such as tourism, automotive, aerospace, medical devices, energy, textiles and apparel, mining, chemical and petrochemical industry, information technologies and the pharmaceutical.

DataMéxico; Access to information as a key to invest in Mexico.

The digitalization of information and investor access in Mexico is not a recent development. Since mid-2020, the National Institute of Statistics and Geography (INEGI) and the Ministry of Economy have operated DataMéxico, a public platform designed to enhance digital access to key investment data by integrating a wide range of databases on trade, production, employment, education and demography, among others with high spatial resolution at the regional and municipal levels.

Beyond its role in data integration, DataMéxico incorporates a research component aimed at generating specialized analyses and public policy proposals to foster a more productive, diverse, and sophisticated economic structure. This initiative was designed to be developed in collaboration with national and international academic and research institutions, offering in-depth and transparent information to both domestic and foreign investors seeking business opportunities in Mexico.

Similar to other platforms in international markets, DataMéxico is freely accessible and has become an open source for investors assessing opportunities across various industrial sectors in the country. Its continuous updates, along with the implementation of the National Digital Investment Window, underscore the federal government’s commitment to advancing modernization and attracting foreign investment in 2025.

Finally, these initiatives not only enhance strategic decision-making for investors but also reinforce transparency and data integration, solidifying Mexico's position as a more competitive and appealing destination for global investment.

Plan México: President Sheinbaum’s Plan to Reaffirm Mexico's Economic and Industrial Prowess

In January 2025, Mexico´s newly elected President, Claudia Sheinbaum, unveiled the federal government's plan to invigorate investment within the country, as well as promote regional development from 5 key economic spheres: consumer goods, technology, tourism, automotive and energy.

This strategy, dubbed “Plan México”, was received with mixed reviews, being heralded by some as “the most daring industrial policy in the last four to five decades”, while others were less impressed at its seeming omission of labor and union sectors alike. Although even its most staunch critics could recognize its scale and ambition, as well as its significance to the country if actualized to its full potential.

The President placed great emphasis upon assuring Mexican citizens that the country, amidst widespread uncertainty, effectively has a cohesive strategy moving forward, one that aims to position Mexico at the forefront of economic and industrial development on a domestic and international scale.

The Plan itself is spearheaded by a list of 13 goals to be achieved over the course of the following years, namely:

Become the 10th largest economy in the world. Raise the ratio of investment to GDP to over 25%. Generate 1.5 million new jobs, Manufacture 50% of domestic supply and consumption In Mexico in the textile, footwear, furniture and toy sectors. Increase national content by 15%. Ensure that 50% of public procurement comes from national production. Develop vaccines made in Mexico. Reduce investment-related procedures in Mexico from 2.6 years to 1 year. Increase the number of additional professionals and technicians trained annually by 150,000. Promote corporate environmental sustainability. Provide 30% of SMEs with access to financing. Become one of the five most visited countries in the world. Reduce poverty and inequality.

So, what does this mean in terms of investment? The President seems keen on cultivating an impressive investment portfolio for the country. Plan México accounts for investments of up to $227,000,000.00 USD in order to achieve its goal of strengthening the economy and give significant boosts to the industrial sectors.

In recent years, Mexico has proved itself to be an industrial powerhouse, reaching a historic level of manufacturing exports, which during 2023 exceeded the manufacturing exports from China to the United States. “Mexico's victorious rise on the world trading stage and its impact on worldwide trade patterns looks to be a model for policy in this century” according to the Observatory of Economic Complexity (2023). Likewise, Mexico has become the most attractive market in the region in terms of advanced facilities, production, and skilled professionals. Industrial parks in Mexico grant investors in the manufacturing, automobile, logistics, and transport industries great advantages as opposed to other countries, having entered into 14 Free Trade Agreements, 30 Reciprocal Investment Promotion and Protection Agreements and 9 Trade Agreements and other international treaties that grant access to 1,350 million potential consumers.

While both the Mexican and American Presidents are currently on amicable terms, having staved off the imposition of tariffs for another month, it is yet to be seen what the next 6 years hold in store for these continental neighbors. Regardless, it seems as though Mexico is prepared to move forward and prioritize its own economic and industrial growth as The Supplier for the North American market.

USMCA’s Impact on Foreign Investment in Mexico: Key Challenges and Strategies

Since coming into effect in 2020, the United States-Mexico-Canada Agreement (USMCA) has reshaped trade and investment dynamics across North America. Replacing NAFTA, the agreement introduced stricter rules of origin and reinforced labor standards, particularly impacting the manufacturing and automotive sectors. By early 2025, these provisions have significantly influenced supply chains, production costs, and labor conditions in Mexico. Additionally, ongoing trade tensions, nearshoring trends, and the upcoming 2026 review of USMCA are shaping the strategic decisions of foreign investors. To remain competitive, businesses must adapt to these new regulatory requirements while navigating evolving market conditions.

Rules of Origin: Supply Chain Adjustments and Compliance Challenges

One of the most significant changes under USMCA is the tightening of rules of origin, particularly in the automotive sector. Vehicles must now meet a 75% regional value content (RVC) requirement, an increase from 62.5% under NAFTA, to qualify for tariff-free trade. Additionally, at least 70% of the steel and aluminum used in production must originate from North America. These rules are designed to strengthen regional manufacturing but have also raised compliance costs and forced supply chain restructuring. For foreign investors, meeting these requirements has meant shifting sourcing strategies, renegotiating supplier contracts, and absorbing higher production costs.

The automotive industry has responded by increasing North American sourcing, investing in regional suppliers, and relocating some production to Mexico, the U.S., or Canada. Meanwhile, other manufacturing sectors, including electronics, aerospace, and machinery, have also reassessed their supply chains to comply with the stricter origin criteria, ensuring uninterrupted trade access under USMCA.

USMCA also introduced groundbreaking labor provisions aimed at improving worker rights and wages, particularly in Mexico. The agreement mandates that 40-45% of a vehicle’s content must be made by workers earning at least $16 per hour, a policy designed to discourage the outsourcing of low-wage jobs. In addition, Mexico committed to labor reforms ensuring independent unions and collective bargaining rights, eliminating employer-dominated unions that had historically controlled negotiations. One of the most significant enforcement tools is the Rapid Response Mechanism (RRM), which allows the U.S. and Canada to investigate and impose trade penalties on factories that fail to comply with labor rights.

Since USMCA’s implementation, several labor disputes have triggered RRM investigations, prompting foreign companies operating in Mexico to enhance compliance measures. These new labor requirements have increased wage costs, unionization efforts, and regulatory scrutiny, making it critical for investors to integrate strong labor compliance programs into their operations.

Bottom of Form

Despite these challenges, several multinational corporations have successfully adapted to USMCA’s new requirements. General Motors and Ford have taken significant steps to restructure their supply chains, shifting battery and semiconductor sourcing to North America to meet the RVC threshold. In addition, GM increased wages at its Silao plant in Mexico to comply with labor standards, ensuring smooth operations while avoiding RRM-related disputes. Similarly, in the manufacturing sector, Siemens Mexico has expanded partnerships with North American suppliers, reducing reliance on imports from non-compliant regions. The company has also revised labor policies to align with Mexico’s labor law reforms, strengthening worker protections and reducing legal risks. These proactive measures have enabled these companies to remain compliant while maintaining cost efficiency and market access under USMCA.

Key Takeaways for Foreign Investors

To successfully navigate USMCA’s regulatory landscape, foreign investors must adopt proactive compliance strategies. Conducting thorough supply chain audits is essential to ensure that suppliers meet the updated rules of origin and labor requirements. Additionally, engaging in proactive labor relations—such as ensuring compliance with Mexico’s labor reforms and implementing fair wage policies—will help businesses avoid trade sanctions and operational disruptions.

Given the potential for further modifications to the agreement, legal advisors and trade experts can help investors anticipate regulatory changes and adjust their strategies accordingly. By focusing on regional supply chain integration, strong labor compliance, and regulatory awareness, businesses can mitigate risks and strengthen their competitive position in North America.

USMCA has brought stricter rules of origin and enhanced labor standards, significantly impacting foreign investment in Mexico. While these changes pose compliance challenges, they also present opportunities for companies to enhance regional supply chains, improve labor conditions, and secure long-term trade benefits. As the 2026 USMCA review approaches, continuous adaptation and proactive compliance efforts will be essential for foreign investors seeking sustained success in Mexico’s evolving trade landscape.

National Recovery and Resilience Plan – Fund for Supporting Industrial Transition

New applications starting from February 5, 2025

The Fund for Supporting Industrial Transition aims to facilitate the adaptation of the Italian production system to the European Union’s policies on combating climate change.

The Fund’s operation is governed by the Ministerial Decree of October 21, 2022, issued by the Minister of Economic Development, in agreement with the Minister of Economy and Finance and the Minister of Ecological Transition.

The Director’s Decree of December 23, 2024, establishes the terms and procedures for submitting applications through the opening of a dedicated application process to support investment programs for environmental protection. The Fund has an initial allocation of 400 million euros and operates through a ranking-based evaluation procedure to determine the order in which applications are admitted for assessment. Regarding the financial allocation, 40% of the resources are designated for funding projects in the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily, while 50% of the resources are reserved for energy-intensive companies.

Applications for access to the resources can be submitted from 12:00 PM on February 5, 2025, until 12:00 PM on April 8, 2025.

Applications will undergo a preliminary assessment phase in the order determined by the ranking. If the outcome is positive, they will be granted financial support within the limits of the available resources.

The incentives are provided in the form of non-repayable grants, which may range from 30% to 50%, in compliance with the maximum aid intensities established by the General Block Exemption Regulation (GBER) and Section 2.6 – Aid for Decarbonization of the "Temporary Framework" (European Commission Decision C(2024) 5008 FINAL concerning the Temporary Crisis and Transition Framework for State aid measures to support the economy following Russia’s aggression against Ukraine).

Investment programs must relate to a single production unit of the proposing company and must aim to achieve at least one of the following objectives:

Greater energy efficiency in business operations; Efficient use of resources by reducing their consumption, including through reuse, recycling, or recovery of raw materials and/or the use of recycled raw materials.

Investment programs must be exclusively aimed at improving environmental protection in business processes. Projects that result in an increase in production capacity are not eligible, except for increases due to technical requirements, provided they do not exceed 20% compared to the pre-investment situation. For aid granted under the Temporary Framework, increases must not exceed 2% compared to the previous situation.

The investment programs must be initiated after submitting the application for access to the Fund, involve eligible total expenditures between 3 million euros and 20 million euros, and be completed within 36 months from the date of grant approval (with a possible extension of no more than 12 months). Within this period, the investments covered by the supported development programs must also become operational and fully functional.

Latest news on the EU Deforestation Regulation (EUDR, reg. EU 2023/1115): a 12-month additional phasing-in period to comply with the obligations.

A 12-month additional phasing-in period was made official by the publication of the Regulation (EU) 2024/3234, which postpones the application of the new obligations set out in Regulation (EU) 2023/1115 on “Deforestation-free Products” affecting operators placing on the market relevant products that have been made using the following commodities: cattle, cocoa, coffee, oil palm, rubber, soya and wood.

As it is well-known to those who followed the debate during the past months, the starting date for the implementation of the Regulation was initially set to be on 30 December 2024, however since October 2024 the European Institutions had been conducting negotiations following pressing demands coming from many sides. From its part, the Parliament initially voted in favour of some amendments not in line with the informal agreement reached with the Counsil and the Commission. This led many people to hope that substantial changes would be introduced to the Regulation in order to lighten certain aspects of it, especially with regard to supply chains involving only EU countries or others considered to be ‘zero risk’.

However, with the approval and subsequent publication on 23 December of Regulation 2024/3234, it was definitively clarified that there are no substantial changes ahead; the new Regulation, in fact, only intervenes on the previous text with respect to the dates of initial applicability and certain transitional rules.

Considering the postponement, the new obligations apply as from 30 December 2025.

However, for operators and traders that were established as micro or small enterprises (as identified in Article 3(1) or (2) of Directive 2013/34/EU) on 31 December 2020, the new obligations apply as of 30 June 2026.

Transitional rules within the timber sector

The Timber Regulation (UE) n. 995/2010 (EUTR) will be repealed as of 30 December 2025.

However, the Regulation will continue to apply on a transitionary basis to timber and timber products, as defined in Article 2(a) of Regulation 995/2010, that were produced before 29 June 2023 and placed on the market between 30 December 2025 and 31 December 2028.

The new Regulation (EUDR) will apply to all other products.

It must be noted that the two Annexes of the two Regulations do not perfectly correspond as regards the list of timber products to which they apply; therefore, timber products to which the EUTR did not apply – but which are listed in Annex I of the EUDR Regulation – will be subject to the EUDR Regulation as of 30 December 2025, such as print products.

Implementation of the Information System and forthcoming innovations

In the meantime, on 4 December 2024, the Commission has progressed with the implementation process and with Regulation (UE) 2024/3084 laid dawn the rules for the functioning of the Information System which will receive and collect the due-diligence declarations submitted by operators, traders and their representatives.

Another important landmark is set for 30 June 2025, the deadline for the Commission to publish the first classification of the countries or parts thereof (EU and non-EU) that will be assigned a level of ‘high’ or ‘low’ risk, with important consequences on risk assessment and the application of related procedures for operators that maintain supply relationships with these countries and regions.

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A brief outline of the scope and the main novelties introduced by the Regulation is provided here below.

The so-called ‘deforestation-free’ Regulation (EU) 2023/1115: a short overview

The provisions laid down in Regulation (EU) 2023/1115, published in June 2023, apply to the placing on the market of the products (listed in Annex 1), that contain or have been made using the following commodities: cattle, cocoa, coffee, oil palm, rubber, soya and wood.

The recipients

The new binding procedures apply to:

operators:  any natural or legal person who, in the course of a commercial activity, places relevant products on the market or exports them; traders: any person in the supply chain other than the operator who, during a commercial activity, makes relevant products available on the market.

Prohibition relating to non-compliant commodities and products

It is prohibited to place or make available on the market or export the commodities and products unless all the following conditions are fulfilled:

they are “deforestation-free”; they have been produced in accordance with the relevant legislation of the country of production (e.g. land use rights, environmental protection, forestry legislation, third party rights, labour rights, human rights protected under international law, principle of free informed consent of indigenous peoples, tax, anti-corruption, trade and customs legislation); they are covered by a “due-diligence statement”.

What do the due-diligence obligations entail

Prior to placing relevant products on the market or exporting commodities and products, operators and traders shall:

collect proper information, data and documents which demonstrate that the relevant products comply with the conditions of the Regulation and store such documentation for a period of at least five years from the date of placing on the market or exporting; carry out a risk assessment to determine whether there is a risk that the products concerned do not comply (taking into account the criteria set out in Article 10 of the Regulation, including, for example, the presence of forests in the country of production or parts thereof, the presence of indigenous peoples, information on the risk of corruption, violation of human rights, etc.). The product is only defined as acceptable if this assessment concludes that no or only a negligible risk was found. Furthermore, the assessment must be reviewed annually; adopt risk mitigation measures where the risk is not null or negligible, such as requiring additional information, data or documents, carrying out independent investigations or audits, supporting smallholders to enable them to comply with the Regulation.

The Regulation lays down partially different and simplified obligations for operators and traders that fall under the definition of small or medium-sized enterprises (SMEs), according to the classification contained in Directive 2013/34/EU.

Sanctions

In the event of non-compliance, the competent Authorities shall apply corrective measures or penalties to operators or traders, and fines (the amount of which is proportionate to the business dimension and the economic benefit obtained) and may also include the confiscation of the relevant products and/or revenues, temporary exclusion from public procurements processes, public funding (tenders and concessions) and the temporary prohibition from placing on the market or exporting.

Operational advice for sound and timely adaptation to new obligations.

The “deforestation-free” Regulation shows a very significant impact on operators and traders in the sectors concerned, as it requires complex and costly (from an organisational and economic point of view) compliance procedures and, in the event of non-compliance, particularly afflictive sanctions.

Therefore, it is strongly advised that those concerned immediately undertake a thorough assessment of the impacts of the new Regulations and a company's compliance pathway, considering that some of the regulatory requirements may not require a short implementation time, in particular:

the organisation of a corporate due-diligence system the collection of information on commodities and products the risk assessment on each commodity and product and on each supplier and the possible adoption of risk mitigation measures the creation of procedures for drafting and submitting due-diligence declarations to the Information System, a service that may be delegated to an agent.

It is important to highlight the fact that the Regulation introduces, de facto, a real and proper strict liability for the operator who places the product on the market, since it is always liable to be sanctioned in the event of verified non-compliance of the product, even if it proves to have complied with all the obligations and procedures required; in particular, this may occur when the risk assessment is based on information from third parties (e.g. suppliers, certifiers, etc.) that subsequently proved to be false or inaccurate.

It is essential, therefore, that well in advance of the new obligations being applied, each operator concerned renegotiate supply contracts with its partners downstream and upstream in the supply chain, in order to adequately manage the relevant legal risk.

Amendments to the Development Contracts Regulation and "ZES Zone" Resources

The Decree of the Ministry of Enterprises and Made in Italy updates the existing regulations and optimizes the use of public resources.

With the adoption of the Decree of November 6, 2024, the Ministry of Enterprises and Made in Italy introduced amendments to the current Development Contracts framework, as established by the Ministerial Decree of December 9, 2014.

These regulatory changes aim to enhance the efficient allocation of public resources, including a more precise definition of development programs for tourism activities and a revision of the incentives available for the agri-industrial sector.

Specifically, the decree introduces several amendments concerning:(i) the regulatory framework for tourism and agri-industrial Development Contracts and(ii) the intervention mechanisms for research and development projects.

Key Amendments to the Development Contracts for Tourism

The new regulatory framework introduces a categorization of eligible development programs, which was previously absent. It also identifies priority intervention areas that influence both the quantitative and qualitative aspects of hospitality offerings.

These include interventions aimed at:

Enhancing and/or improving hospitality infrastructure, specifically: The construction of new accommodation facilities. The expansion of existing hospitality structures, provided that the investment project leads to an increase in capacity of at least 20% compared to the current situation. Improving the quality of hospitality services. Integrating additional services within existing hospitality facilities to enhance the tourism offering, including measures that support seasonal adjustment strategies. Developing and/or improving multifunctional structures and facilities that significantly increase tourism attractiveness and enhance the identity of local territories. This includes investments in ski lift systems, ski resorts, marinas, theme parks, water parks, and thermal establishments. Key Amendments to the Development Contracts for the Agri-Industrial Sector

The revised regulation expands the scope of Development Contracts in the agri-industrial sector, introducing:

The "large-scale investment project" concept, applicable to projects exceeding €50 million in expenditure. For these projects, the regulation establishes a progressive reduction in the contribution rate, according to investment brackets: 100% of the recognized intensity for investments up to €55 million. 50% for investments between €55 million and €110 million. 34%, subject to individual notification, for investments exceeding €110 million. The "investment consolidation" principle, under which investment projects initiated by the same beneficiary within the same production unit within three years of the start date of another subsidized investment are considered part of a single investment project. Amendments to Research and Development Project Interventions

The regulatory update aligns the list of eligible technologies with the objectives of the Horizon Europe program.

The new framework classifies technologies into 18 categories, outlining their general guidelines:

Manufacturing technologies Fundamental digital technologies, including quantum technologies Emerging enabling technologies Advanced materials Artificial intelligence and robotics Circular industries Clean, low-carbon industry Rare and non-communicable diseases Infectious diseases, including neglected diseases and poverty-related illnesses Digital tools, technologies, and solutions for health and care, including personalized medicine Industrial facilities in the energy transition Industrial competitiveness in the transport sector Clean, safe, and accessible mobility and transport Smart mobility Energy storage Food systems Bio-innovation systems in the EU bioeconomy Circular systems Alignment with the October 25, 2024 Directive and the ZES Single Zone

This regulatory change aligns with the October 25, 2024 directive issued by the Ministry of Enterprises, which defines thematic areas and operational guidelines for utilizing resources from the Development and Cohesion Fund (2021-2027 programming period). These resources are allocated to the Development Contracts within the ZES Single Zone, encompassing the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sicily, and Sardinia.

The directive establishes the allocation mechanism for an additional €250 million in financial resources, of which €200 million are designated for financing... (continues based on the original text).

On 11 September 2024, the European Commission published the State of the Energy Union report which describes how the EU has managed unprecedented challenges in the energy policy landscape during this Commission's mandate, equipping the EU with a regulatory framework for pursuing the clean energy transition and laying the foundations for renewed economic growth and competitiveness.

Key legislative updates in the EU energy sector

The European Union has recently taken significant steps in its energy legislation to support its climate neutrality objectives for 2050 and emission reduction targets for 2030. The following legislative measures have been introduced or entered into force:

Renewable Energy Directive (RED): Enhancements to the RED focus on increasing the share of renewable energy sources, streamlining permitting processes, and integrating renewables into the EU energy grid Energy Efficiency Directive (EED): Stricter requirements for energy consumption reduction across member states, promoting sustainable practices and efficient use of energy. Energy Performance of Buildings Directive (EPBD): Mandates to improve energy efficiency in the building sector, with targets for new constructions and renovations. Hydrogen and Decarbonised Gas Markets Package: Comprehensive regulations to facilitate the adoption of hydrogen and other low-carbon gases. Methane Emissions Regulation: A groundbreaking regulation to monitor and reduce methane emissions in the energy sector. Electricity Market Design Reform (in detail on pages 6-7): Aims to create a more resilient and consumer friendly energy market while ensuring security of supply.

Extension of the Emissions Trading System (ETS): Inclusion of new sectors and tightened caps to strengthen the EU’s carbon pricing mechanism.

Achievements in 2024:

Record Renewable Installations: In 2023, the EU installed 56 GW of new solar capacity, with renewables accounting for 50% of electricity generation in the first half of 2024. Reduced Dependency on Russian Energy: Imports of Russian gas have fallen from 45% of total EU imports in 2021 to 18% by mid-2024. Similar reductions have been achieved for coal and oil imports. Progress in Energy Security: Gas storage reached a record 90% capacity by mid-August 2024, ensuring resilience for winter energy demands.

Key Achievements Under the Fit-for-55 and REPowerEU Plans:

Energy Efficiency Gains: Primary energy consumption has declined, moving closer to the 2030 targets. Decarbonisation Milestones: The EU’s greenhouse gas emissions are 32.5% lower than 1990 levels, and the Emissions Trading System (ETS) has expanded to include maritime transport. Renewable Energy Expansion: Wind and solar energy installations have surged, with wind surpassing gas generation as the second largest electricity source after nuclear. Diversification of Energy Imports: Norway and the U.S. have become the EU’s largest suppliers of pipeline and LNG gas, respectively, replacing Russian imports. Support for Clean Energy Technologies: Initiatives like the European Solar PV Industry Alliance and the European Industrial Alliance on Small Modular Reactors (SMRs) have been launched to strengthen the clean energy sector.

Economic and Employment Benefits

Job Creation: REPowerEU targets are projected to create over 3.5 million jobs by 2030, emphasizing the economic opportunities in the energy transition. Competitiveness: The Net-Zero Industry Act and Critical Raw Materials Act aim to ensure resilient supply chains and support for European manufacturers in the global clean energy market.

Challenges and Future Steps

Addressing Ambition Gaps: More robust measures are required to meet the 2030 renewable energy and efficiency targets. Energy Poverty: Tackling high energy costs remains a priority, with targeted interventions to shield vulnerable populations. Grid Modernization: The Grids Action Plan addresses challenges in expanding and digitalizing electricity infrastructure across the EU.

EU Initiatives to Watch

European Hydrogen Bank: Supporting hydrogen investments and market development with new auctions and funding mechanisms. Aggregate EU Platform: A permanent tool for joint purchasing of natural gas and strategic commodities, enhancing energy security. European Net-Zero Academies: Providing workforce training in renewable energy, hydrogen, and other key sectors. Expansion of LNG Infrastructure: New terminals and expansion projects have increased the EU’s LNG import capacity, improving energy security. European Renewable Energy Auctions Platform: A new platform to consolidate information on planned renewable energy auctions across the EU, streamlining investments in the sector.

17 January was the deadline for EU member states to transpose the new electricity market design rules into national law. These rules have been created to tackle rising energy prices. They aim to make energy prices more stable and predictable for consumers and less dependent on the price of fossil fuels.

Member States were required to take national measures to:

Energy costs which are more reflective of (cheaper) renewable energy and also more predictable. Wider choice of consumer contracts and clearer information before signing contracts. Option to lock in secure, long-term prices.  Dynamic pricing contracts, if needed, to take advantage of price variability to use electricity when it is cheaper. Protection from being without electricity through the establishment of suppliers of last resort.  Protection from disconnection for those who are vulnerable or energy poor. More opportunities for energy sharing, for example, tenants will be able to share surplus rooftop solar power with a neighbour.

According to EUR-Lex, the vast majority of EU member states have failed to transpose the New Market Design Directive into national law.

On 23 January during the World economic forum in Davos a new Global Energy transition Forum was launched by European Commission President Ursula von der Leyen along with international partners with the objective of reaching for ambitious climate targets at world level and supporting countries for whom the clean transition is more challenging.

The forum aims to: Maintain momentum on global energy agreements and integrate these targets into new Nationally Determined Contributions (NDCs) ahead of the COP. Transform these targets into concrete projects that benefit people, such as bringing power to underserved communities and scaling up clean energy globally. Unlock more investment through smart finance, de-risking tools, blended finance, and other creative solutions to attract private capital. President von der Leyen highlighted the unprecedented levels of world spending on clean energy. “Last year alone, global spending on clean energy hit a record USD 2 trillion. For every dollar invested in fossil fuels, you had two dollars invested in renewable energy. In the power sector, clean energy investments outnumber fossil fuels ten to one. This is a shift we have been working towards for years,” she remarked. Challenges: Despite progress, regions like Africa still struggle to benefit from the clean energy transition, receiving only 2% of clean energy investment despite having 60% of the world’s best solar resources. Scaling Up Manufacturing: The forum also focuses on scaling up manufacturing to improve grids and storage capacity, requiring massive investment that no single company or country can undertake alone. The President concluded saying: “I want to be very clear with my message: Europe stays the course and we stand ready to work with all global actors to accelerate the transition to clean energy.”

The European Commission has published a new study that provides an in-depth look at the state of net-zero technology manufacturing across the EU. The study highlights advancements in key sectors such as wind, solar, batteries, carbon capture, and heat pumps. It aims to fill data gaps and offer a reliable assessment of the manufacturing capacities for these technologies in all 27 EU countries.

Key findings include:

1. Manufacturing Capacity: A detailed mapping of the current manufacturing capabilities for net-zero technologies in each EU country. 2. Policies and Incentives: Analysis of the national policies and incentives that support the growth of manufacturing capacities. This includes regulatory frameworks, investment incentives, and skills development programs. 3. Challenges and Opportunities: Identification of bottlenecks in the manufacturing process and potential opportunities to increase production capacity. The study also highlights best practices in policy frameworks and notes that nearly three-quarters of EU countries have introduced incentive programs to boost investments in net-zero technology manufacturing. At the EU level, the Net-Zero Industry Act aims to enhance manufacturing capacity by addressing barriers to scaling up production in Europe. The report and its summary can be found here: The net-zero manufacturing industry landscape across the Member States European Commission.

The European Commission recognizes the importance of involving young people in policymaking processes and ensuring they are well-informed and actively participating in the energy transition.

Youth Involvement: The European Commission aims to enhance youth participation in energy policy discussions, recognizing that 67% of young people see EU actions impacting their daily lives. Employment and Skills: The renewable energy sector is growing, with significant job opportunities expected. By 2030, 3.5 million new jobs will be needed, particularly in wind and photovoltaic sectors. Education and Awareness: The Commission is stepping up its efforts to provide information and tools for young people to get involved in the energy sector and to remove barriers such as lack of information and relevant curricula. Young Energy Ambassadors: Launched in 2023, this program selects 30 young people annually to promote engagement and awareness about EU energy policies. Educational Initiatives: The ‘Back to School’ initiative and e-learning content on the EU Academy website aim to educate students about energy, climate, and environment issues.

The Commission, the EU Agency for the Cooperation of Energy Regulators (ACER) and the Renewables Grid Initiative (RGI) have launched a survey on enhancing regulatory environments for stakeholder engagement in electricity infrastructure projects in the EU, under the EU’s Pact for Engagement.  The survey will be open for 4 weeks, i.e. until 23 February 2025.

Purpose: To understand practices, opportunities, challenges, and enabling conditions related to regulatory and legal frameworks of stakeholder engagement. Target Audience: Grid operators across Europe (TSOs and DSOs) and National Regulatory Authorities (NRAs). Outcome: Results will contribute to enhanced regulatory environments and will be presented at the 11th Energy Infrastructure Forum in June 2025 and at the Pact for Engagement Stakeholder Meetings. Survey link: EUSurvey – Survey.

European Commission Recommendation EU 2025/63 urges Member States to monitor outbound Investments in Critical Technology Sectors, essential for the EU ‘economic security.

On January 15, 2025, the European Commission adopted Recommendation (EU) 2025/63, a fundamental document aimed at strengthening the economic security of the European Union through careful monitoring and thorough evaluation of outbound investments in critical technology sectors. This initiative is part of the European strategy for economic security, which aims to protect the EU from threats arising from economic flows and activities that could compromise its security (“Recommendation (EU) 2025/63”).

The Recommendation (EU) 2025/63 arises from the growing awareness of the risks associated with the leakage of advanced technologies to third countries. Such technologies could be used for military or intelligence purposes, undermining international peace and security. The Commission established a group of experts to assess these risks and identified ten critical technology sectors, including advanced semiconductors, artificial intelligence, and quantum technologies.

Recommendation (EU) 2025/63 fits into a broader context of European Union policies aimed at protecting foreign investments. The EU has developed a comprehensive strategy to ensure that investments, both inbound and outbound, do not compromise the Union's economic and technological security. This strategy includes:

Foreign Subsidies Regulation (FSR): Entered into force on July 12, 2023, the FSR allows the Commission to address distortions caused by foreign subsidies, ensuring a level playing field for all companies operating in the single market. The FSR aims to prevent foreign subsidies from distorting market conditions, preventing subsidized companies from acquiring businesses or obtaining public contracts in the EU. Regulation (EU) 2019/452: This regulation establishes a framework for the control of foreign direct investments (FDI) in the Union, with the aim of protecting security and public order. The regulation allows Member States and the Commission to examine foreign investments that could affect the security or public order of the EU. European Strategy for Economic Security: This strategy, adopted by the Commission and the High Representative, aims to implement a comprehensive strategic approach to economic security, addressing challenges arising from geopolitical tensions and deeper global economic integration.

According to the Raccomendation (EU) 2025/63, Member States are invited to review outbound investments related to:

Semiconductors: This sector includes technologies for the design, manufacture, and assembly of integrated circuits and other semiconductors. The recommendation specifies various areas, such as the design of integrated circuits, software for electronic design automation, the initial and final manufacture of semiconductors, and the materials used in their production. Artificial Intelligence (AI): The recommendation focuses on generative AI systems, especially those trained on biological/genomic data or used in biotechnological, space, or defense contexts. These systems are designed to operate with varying levels of autonomy and can influence physical or virtual environments through predictions, content, recommendations, or decisions. Quantum Technologies: This sector includes quantum computing, quantum communications, and quantum sensing. These technologies have the potential to revolutionize various fields, from cryptography to the simulation of complex chemical processes.

Specifically, the Recommendation (EU) 2025/63 requires Member States to review outbound investments made by natural or legal persons resident or established in the Union ("EU Investors") to conduct economic activities in a third country related to one of the technology sectors defined above, such as (i) acquisition and or merger process, (ii) transfer of tangible (or intangible) assets (including specific intellectual property or know-how necessary for the start or continuation of an economic activity and constituting an identifiable part of a company's business operations, excluding the transfer of individual products or dual-use software subject to Regulation (EU) 2021/821 of the European Parliament); (iii) the establishment of a new business, subsidiary, or branch and joint venture.

The review should exclude minority investments whose objective is limited to seeking a return on invested capital. The review should also cover indirect investments by an EU investor, such as those made through a third-country entity used as an investment vehicle, through an existing subsidiary, or in the context of an existing joint venture with a third-country company or located there. This includes the gradual transfer of assets over time but occurring during the review period, and investments aimed at violating or circumventing existing security controls on trade and investments (and targeted individual measures), including Union restrictive measures under Article 215 of the Treaty on the Functioning of the European Union.

The review should cover new and ongoing operations and those concluded from January 1, 2021, but may also cover activities prior to that date where Member States identify operations of particular concern. Member States must assess whether such operations create or exacerbate risks to economic security by collecting detailed information on the participants in the operation, the type of investment, the approximate value, the products and technologies involved, and other relevant aspects.

Recommendation (EU) 2025/63 represents a significant step towards protecting the economic security of the European Union. Through careful monitoring and rigorous evaluation of outbound investments, the EU aims to prevent the leakage of critical technologies and maintain its position as a global technological leader. This integrated and collaborative approach between Member States and the European Commission, along with national tools such as the Golden Power, will help strengthen the Union's resilience in the face of future geopolitical and economic challenges.

Raccomandazione sul riesame degli investimenti in uscita in settori tecnologici critici per la sicurezza economica dell'UnioneDownload

Energy and Petroleum

The Presidency of the Republic modified the name of the Ministry of the Popular Power for Petroleum, which is now called Ministry of the Popular Power for Hydrocarbons. (Official Gazette of 12/17/2024. Decree No. 5.061. Entry into force: Upon publication in the Official Gazette).

Tax

The National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT) established the rate applicable to the calculation of late payment interest accrued during August, September, and October 2024. It was established that the weighted average interest rates for loans of the six (6) principal commercial and universal banks of the country with the highest volume of deposits, excluding portfolios with prime rates, set by the Venezuelan Central Bank (VCB) for August, September, and October 2024 are: 59.26%, 59.23% and 59.30%, respectively, which rates are to be increased 1.2 times for the calculation of late payment interest accrued during the aforesaid months. (Official Gazette of 12/06/2024 and 12/19/2024. Administrative Rulings Nos. SNAT/2024/000108, SNAT/2020/000109, and SNAT/2020/000123).

A Presidential Decree extended until 06/09/2025 the validity of Decree No. 4.525 (Decree of Optimization and Revitalization of Exportation Processes) published in Official Gazette of 06/09/2021. Therefore, the exemptions from the exportation legal regimes indicated in said Decree No. 4.525 continue to be in force. (Official Gazette of 12/16/2024. Decree No. 5.058. Entry into force: As from 12/09/2024). The SENIAT established the schedule of Special Taxpayers and Withholding Agents for the obligations to be performed in year 2025. (Official Gazette of 12/18/2024. Administrative Ruling No. SNAT/2024/000118. Entry into force: Upon publication in the Official Gazette). The SENIAT established the schedule of Taxpayers not Categorized as Special Taxpayers for activities of games of chance to be performed in year 2025. (Official Gazette of 12/18/2024. Administrative Ruling No. SNAT/2024/000119. Entry into force: As from the date of publication in the Official Gazette).

The SENIAT issued an Administrative Ruling that regulates the use of digital media for the issue of invoices and other fiscal documents. For purposes of said Ruling, other documents refer to debit notes, credit notes, delivery orders or waybills and withholding certificates. The taxpayers subject to the obligation to use digital media for the issue of invoices and other documents must perform said obligation as from the first day of the third calendar month after the entry into force of the aforesaid Administrative Ruling. The provisions of said Administrative Ruling will not be applicable to the invoicing by telephony services intermediaries as established in Administrative Ruling No. 0474, published in Official Gazette of 10/01/2004. Administrative Ruling No. SNAT/2014/0032, published in Official Gazette of 09/02/2014, which rules the use of different media for the issue of invoices and other documents by suppliers of mass services, was repealed. The authorizations granted under the validity of said Administrative Ruling No. SNAT/2014/0032 continue to be in effect. (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000102. Entry into force: Upon publication in the Official Gazette).

The SENIAT issued an Administrative Ruling that regulates the conditions and requirements to be met by the providers of information technology systems used for the issuance of invoices and other fiscal documents, in order to be homologated and authorized by the National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT). (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000121. Entry into force: Upon publication in the Official Gazette).

The SENIAT established the schedule for declaration and payment of the special contribution for protection of social security pensions in the face of the imperialist blockade to be performed in year 2025. (Official Gazette of 12/19/2024. Administrative Ruling No. SNAT/2024/000120. Entry into force: As from the date of publication in the Official Gazette).

Presidential Decree No. 5.071 established as follows: (i) an exemption of ninety percent (90%) from import duties and from value added tax is established for the final importation of new or used corporeal personal property, made by entities of the National Public Administration and by natural or legal persons with their own resources, classified in the schedules of customs duties indicated in Appendix 1 to Decree No. 5071. This benefit operates by reason of law only; (ii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made by entities of the National Public Administration and by natural or legal persons with their own resources, classified in the schedules of customs duties indicated in Appendix II to Decree No. 5.071.

This exemption is subject to the Certificate of No National Production or Insufficient National Production (Certificado de No Producción Nacional o Producción Nacional Insuficiente (CON or CPNI); (iii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Mining Ecological Development or the entities assigned to it and that made exclusively by the Corporación Venezolana de Guayana (CVG) or the companies assigned to it, classified in the schedule of customs duties indicated in Appendix III to Decree No. 5.071; (iv) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Attention to Waters or the entities assigned to it, classified in the schedule of customs duties indicated in Appendix IV to Decree No. 5.071; (v) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by the Ministry of the Popular Power for Electric Energy or the entities assigned to it, classified in the schedule of customs duties indicated in Appendix V to Decree No. 5.071; (vi) an exemption from import duties and value added tax is established for the final importation of corporeal personal property, made exclusively by Corporación Socialista del Cemento (CSC) and the companies assigned to it, classified in the schedule of customs duties indicated in the Decree; (vii) an exemption from import duties and value added tax is established for the final importation of corporeal personal property made exclusively by Corporación Venezolana de Comercio Exterior (CORPOVEX), classified in the schedule of customs duties indicated in the Decree. The exemption benefit will apply as of the date of recording of the relevant Customs Declaration for importation. The exemption benefits established in the Decree will apply from 01/01/2025 to 03/31/2025. (Official Gazette No. 6.869 Extraordinary of 12/27/2024. Decree No.5.071. Entry into force: Upon publication in the Official Gazette).

Labor

A Presidential Decree established a fire freeze in favor of the workers of the public and private sectors from 01/01/2025 up to and including 12/31/2026. As a result of the foregoing, the workers protected by the fire freeze may not be dismissed or transferred, nor may their employment conditions be worsened, without a justified cause approved by the Labor Inspector. The fire freeze will apply to the workers referred to in article 87 of the Organic Law of Labor and Workers. Workers of direction and casual or temporary workers are exempted from this Decree. (Official Gazette No. 6.868 Extraordinary of 12/27/2024. Decree No. 5.070. Entry into force: As from 01/01/2025).

TELECOMMUNICATIONS The National Telecommunications Commission determined the portions of the radio spectrum that will be submitted to the public offering procedure, in accordance with the provisions of the Organic Telecommunications Law and other applicable provisions. The National Telecommunications Commission may only assign through the public offering procedure the portions of the radio spectrum that the Administrative Ruling indicates in accordance with the attribution established in the National Chart of Frequency Band Attribution. Administrative Ruling No. 011, published in Official Gazette of 04/27/2016, was repealed. (Official Gazette of 12/03/2024. Administrative Ruling No. 113. Entry into force: Upon publication in the Official Gazette. It will have the character of annex to the National Telecommunications Plan).

Miscellaneous

The Ministry of the Popular Power for National Trade declared the following standard as Venezuelan COVENIN Standard of national character: Standard 2257-1:2024 “Installations of ionizing radiations. Part 1: Classification, delimitation, and demarcation of work environments. Requirements. (2nd. Review).” The content of said Standard will be published in the institutional site of the Deconcentrated Service of Standardization, Quality, Metrology, and Technical Regulations (Servicio Desconcentrado de Normalización, Calidad, Metrología y Reglamentos Técnicos - SENCAMER) (www.sencamer.gob.ve). (Official Gazette of 12/16/2024. Resolution No.091/2024. Entry into force: Upon publication in the Official Gazette).

Opening of the application window for the so-called Mini Development Contracts starting February 5, 2025

Support for medium-scale financial investments related to STEP critical technologies

The so-called Mini Development Contract is an incentive promoted by the Ministry of Enterprises and Made in Italy, managed by Invitalia, to support investments aimed at the development or production of critical technologies identified by the European STEP Regulation (EU Regulation 2024/795): digital and deep-tech technologies, clean and resource-efficient technologies, and biotechnologies.

Pursuant to the directorial decree issued on December 20, 2024, by the Department for Enterprise Policies (Directorate-General for Business Incentives), detailed provisions have been established to ensure the effective implementation of the measure, supporting investments ranging from €5 million to €20 million in the above-mentioned critical technology sectors.

The Mini Development Contract provides funding for projects between €5 million and €20 million, targeting enterprises of all sizes for investment initiatives to be carried out in the regions of Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily. These investments must focus on the development and/or production of critical technologies outlined in the STEP Regulation or on strengthening their value chain to enhance supply chain security, resilience, and system productivity.

A total budget of €300 million has been allocated, sourced from the 2021–2027 National Research, Innovation, and Competitiveness Program, and distributed as follows:

€100 million under Policy Objective 1 of the PN RIC 2021–2027, designated for SME investments €200 million under the STEP Policy Objective of the PN RIC 2021–2027, available for investments by SMEs and large enterprises

Eligible investments must pertain to a single production site within the following sectors:

Digital technologies and deep-tech innovation Clean and resource-efficient technologies, including net-zero emission technologies Biotechnologies, including medicines listed in the Union's critical medicines inventory

The funding is provided as non-repayable grants, subject to the maximum aid intensities specified in the Regional State Aid Guidelines. Eligible expenses will be covered at the following rates:

55% for small enterprises 45% for medium enterprises 35% for large enterprises

Applications will be ranked based on an evaluation process that considers the following criteria:

Financial independence Contribution of core business operations to revenue generation Environmental sustainability Level of innovation Employment impact

Applications may be submitted exclusively online via Invitalia’s web platform from 12:00 p.m. on February 5, 2025, until 12:00 p.m. on April 8, 2025.