A coalition of over 150 businesses, associations and investors — including Ikea, Google, Vattenfall and Allianz — is urging the EU to stick to its target of cutting emissions by 90 percent by 2040.
In a joint letter sent to EU leaders on Tuesday (27 May), they warn that “90 percent should be considered as the floor rather than the ceiling for ambition,” warning that anything less would jeopardise Europe’s industrial future and energy security.
“Integrating the target into a comprehensive industrial strategy … will allow the EU to lead the global race of development of sustainable industrial ecosystems and industries,” the letter says.
The EU Commission is drafting a law to formally adopt its earlier pledge to cut greenhouse gas emissions by 90 percent by 2040, but is under pressure from some member states to lower the target.
Most countries, including the pivotal one Germany, remain (mostly) committed to the 90 percent reduction figure. But Italy has called for an 80 percent target instead.
And Berlin will allow emission-cutting projects abroad, like forest protection, to count toward its own climate goals through carbon credits. The commission may let other countries do the same, though the practice is controversial.
Past analysis found that 90 percent of rainforest offsets were likely worthless.
On Monday the commission confirmed it would present its plans before the summer break, but declined to give a clear date.
Until then, the 150+ signatories of the letter will continue to push the commission to hold the line.
An ambitious target, they argue, will “accelerate clean tech innovation, create jobs, and boost demand for sustainable products.”
The signatories include Anna Borg, chief executive of Swedish energy firm Vattenfall, Matt Brittin, president for EMEA at Google, and Ignacio S. Galán, executive chairman of Spanish utility Iberdrola.
They also point out that the commission’s own modelling shows full decarbonisation of Europe’s power sector is possible by the late 2030s. But this is only achievable if fossil-fuel subsidies are scrapped, electrification and deployment of renewables are tripled, and much higher carbon pricing is phased in.
The firms also want the commission to include an “explicit maximum” on how much the EU expects to rely on carbon removals, adding that “mitigation should be the absolute priority.”
Failure to act decisively, they warn, will leave the EU exposed to external shocks, stranded assets, and long-term industrial decline. Conversely, having a “robust” climate target of 90 percent will improve the EU’s resilience to shocks, energy security, and competitiveness.
Businesses are ready to play a “key role” in decarbonisation, they say, but need clearer direction from Brussels.
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This article was amended to reflect the correct date the letter was sent
Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.
Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.