Business and investors urge the EU to set a greenhouse gas emissions reduction target of at least 90% by 2040
CEOs, business leaders and investors from over 1001 organisations, including IKEA (Ingka Group), Coca Cola, Unilever, Google, Iberdrola and the We Mean Business Coalition (WMBC) have signed a joint letter calling on the EU to set a greenhouse emissions reduction target of at least 90% by 2040. Signatories stress that a robust target will bring economic opportunities and competitiveness benefits while increasing energy security for citizens and businesses. They argue that the target, and climate more broadly, should be considered as a central element of the EU’s overall strategy to achieve these objectives.
Read the letter here.
This month, a new report by the European Environment Agency (EEA) highlighted that climate risks have reached critical levels and 2023 is now the hottest year since records began. On 25 March, Environment and Climate Ministers are set to discuss the EU’s 2040 climate target at the Council. As a result, over 90 businesses and investors from across the EU, representing more than a million employees and managing trillions of euros in assets, have joined forces to call for an ambitious target. At least 90% of greenhouse gas emissions must be cut by this date, to reflect the urgency of the climate crisis.
Signatories, also including H&M, Velux, EDP, AVEVA, and the Institutional Investors Group on Climate Change (IIGCC) emphasise that a robust target, backed by a smart coherent package of supporting policies will decarbonise our economies. It will also ensure that we drive innovation and economic opportunities. This target will enable the creation of high quality jobs and cost savings that citizens rightly expect, while improving the health and well-being of its people.
The letter1 establishes principles for the economic transformation that will be necessary to achieve the target – and for a climate neutral EU in the longer term. These principles include developing a comprehensive industrial strategy, guided by a ‘competitive sustainability’ approach, accelerating the clean energy transition and efficiency, phasing out fossil fuels, nature-positive investment and harnessing the decarbonisation potential of the circular economy.
Quotes:
Ursula Woodburn, Director of Corporate Leaders Group Europe, said:
“There is no doubt, climate change is multiplying the risks we face as ecosystems, economic and people. So today – businesses and investors are demanding bold and decisive action. A target of at least 90% emissions cuts by 2040 will prevent future shocks and finally deliver the crucial energy transition. It will bring economic transformation and increase the EU’s competitiveness”.
Stephanie Pfeifer, CEO of IIGCC, said: “Climate change poses a financial risk to businesses and investment portfolios. This risk is growing, and the rapid and orderly decarbonisation of the global economy is the key tool that we have to mitigate it. With this in mind, IIGCC supports the European Commission’s target for at least a 90% net reduction in greenhouse gas emissions compared to 1990 levels by 2040. By setting an ambitious target, and integrating it into a comprehensive industrial strategy, the EU will also provide greater policy certainty to encourage the investment necessary to achieve these emission reductions.”
Markus Rauramo, President and CEO of Fortum Corporation, said:
Enabling the decarbonisation of societies through electrification is an integral part of Fortum’s strategy. Our climate policy advocacy and emission reduction target setting (SBTi 1.5 °C) are strongly based on climate science. As the global carbon budget is limited, early action and high EU ambition of at least 90% emission reduction in 2040 are most welcomed. In our view, such ambition is pivotal for both providing investment clarity for the rollout of the most efficient emission reduction technologies, and addressing the EU’s triple challenge of decarbonisation, competitiveness and security of supply.”
Lars Petersson, CEO of VELUX, said:
To be ready for 2050, we need a 2040 EU emission reduction target of at least 90%. A significant part of this reduction needs to come from the building sector, which currently accounts for over a third of GHG emissions. At VELUX, by 2030, we aim to achieve a 100% reduction of operational emissions (scope 1 and 2) and reduce our carbon emissions from our value chain by 50% (scope 3). To get there, we collaborate closely with our whole value chain to create low carbon, energy efficient and healthy buildings.”
Miguel Stilwell d’Andrade, CEO of EDP, said:
Over 85% of the energy produced by EDP comes from renewable sources – this showcases how we integrate climate action into our business growth strategy. The European Union has been a world leader on climate action, and we believe European leaders should continue to play a key role by setting a bold target of at least a 90% emissions reduction by 2040. Combatting climate change and accelerating the energy transition remain the cornerstones of a European strategy that will ensure competitiveness, innovation, resilience, and security”.
- For more information on CLG Europe position paper : Raising European Climate Ambition for 2040 ↩︎
