Page 14 - Policy Economic Report - November 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Deepening the European Union single market will be critical to counter fragmentation along
national borders. The goal must be to make it easier for innovative firms in the field of AI to access
a broader, EU-wide customer base. This requires removing barriers to cross-border services,
opening protected sectors, and harmonizing standards – all of which can help reduce the cost of
developing and adopting AI tools.

• Funding the risky investments that underpin AI development (often based on intangible assets
like software and intellectual property) requires stronger and more integrated financial markets.
A well-functioning Capital Markets Union can increase the availability of venture capital by
channelling more savings to early-stage, risky technological ventures in AI.

• Flexible labour markets and portable social protection are vital to help workers transition toward
sectors and firms that are expanding thanks to AI. For instance, simplifying degree recognition,
enhancing housing affordability, and ensuring pension portability can facilitate movement to
where opportunities from AI arise.

• Creating a more efficient energy market is another key ingredient. Affordable and reliable
electricity will support data centres that power AI systems. Securing competitive and low-carbon
energy supplies through better market integration will support both AI infrastructure and
Europe’s broader green transition.

• Finally, regulation needs to remain flexible. While addressing important data protection, ethical,
and safety concerns related to AI, regulation will need to be dynamically calibrated to navigate
the trade-offs between addressing risks and enabling growth through AI adoption. Reaping the
full potential of AI depends on policy choices that Europe makes today. Even moderate AI
productivity gains in the coming years would be significant relative to Europe’s anemic economic
growth prospects.

4. ADB updates energy policy to strengthen focus on energy access, security

The Asian Development Bank (ADB) has approved a set of changes to its energy policy that strengthen the
bank's commitment to increasing energy access and improving energy security. These changes further
enhance ADB's ability to support countries in Asia and the Pacific as they work to meet their rapidly
growing energy needs, according to ADB President Masato Kanda.

These changes pave the way for ADB to support nuclear power, including investments for the first time.
ADB support for developing member countries that choose to pursue nuclear power will be subject to
rigorous assessments and the highest standards of safety, security, and environmental and
social safeguards, according to ADB.

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