Business and Investors call on the EU to Set a Greenhouse Gas Emissions Reduction Target of at least 90% by 2040.

27 May 2025 - Over 150 businesses and investors signed a joint letter calling on the EU to set a greenhouse gas emissions reduction target of at least 90% by 2040. A robust climate target and the decarbonisation of our economies will improve the EU’s resilience to shocks, energy security and competitiveness 

Read the letter here.

In an open letter coordinated by CLG Europe, CEOs, leading businesses, investors, networks and SMEs across the EU, call on the EU to set a greenhouse gas emissions reduction target of at least 90% by 2040. This science-based target reflects the urgency and benefits of near-term action. Businesses and investors 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. 

According to the signatories, the EU should: 

• Integrate the target into a comprehensive industrial strategy, guided by a ‘competitive sustainability’ approach, allowing the EU to lead the global race of development of sustainable industrial ecosystems and industries. 
• Place the target at the centre of the EU’s overall strategy to enhance energy security by accelerating the clean energy transition and energy efficiency, and phasing out fossil fuels. 
• Build on the legacy of the Green Deal and effective implementation of the Fit for 55 Package. 
• Harness the opportunities presented by the circular economy and eco-design to tackle emissions stemming from the production of materials. 
• Create a clear signal to businesses and national governments of the importance in investing in nature-based solutions and the transition to a nature positive economy. 
• Set a robust target that will allow the EU to play a leading role to phase out fossil fuels, triple the rate of deployment of renewables and double energy efficiency rates globally. 

Businesses and investors stand ready to play a key role in translating climate targets into concrete action, working hand in hand with policymakers. 

Quotes from business and investor leaders: 

Ursula Woodburn, Director of CLG Europe:   

“As highlighted in the Draghi report, there is a clear economic case for decarbonisation which needs to be developed further through a coherent plan and political framework. Businesses and investors are already taking action to deliver projects that bring together economic benefits, energy security and climate objectives. It is time for the European Commission to support this and ensure long term clarity and consistency by proposing a robust target of at least 90% GHG reductions by 2040. This will help unlock and channel investment flows towards transforming EU industry, increasing its future competitiveness and boosting economic resilience.”  

Günther Thallinger, Member of the Board of Management, Investment Management, Sustainability, Allianz SE:

“A 2040 EU emission reduction target of at least 90% provides long-term certainty to investors. This clarity enables confident capital allocation. Aligning national policy with climate science will help avert climate impacts. It will also unlock investment in sustainable infrastructure. We encourage policymakers to deliver the clarity and ambition that investors are ready to support.”  

Rebecca Marmot, Unilever Chief Sustainability and Corporate Affairs Officer  of Unilever: 

“Unilever's ambition is to reach net zero across our value chain by 2039. A strong EU 2040 target of at least 90% greenhouse gas reduction will be instrumental in creating the regulatory certainty and investment signals we need to decarbonise our operations and supply chains at speed and scale. Prioritising deep emissions cuts is critical, not just for environmental integrity, but also for driving innovation and resilience in our business and across the European economy. This is about ensuring that climate ambition translates into real transformation, now.”  

Saverio Tridico, Group Corporate & External Affairs and ESG Director of Nexi:  

“At Nexi, we are aware that the industry can do more from an environmental standpoint, and we look forward to continuing our efforts and engaging the entire payment value chain to share our expertise and collaborate toward a sustainable future. In line with this vision, 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, because this will reaffirm the EU’s determination to tackle climate change and help to boost the competitiveness of Europe’s businesses.”  

Gwenaelle Avice Huet, EVP Europe Operations of Schneider Electric:  

“It is crucial to set an ambitious climate target, to give certainty and a clear signal for investments in emission reductions. To achieve carbon neutrality, the electrification rate will have to reach at least 60% by 2050: as electrification keeps stagnating around 23% in Europe, providing a strong direction will therefore be essential. This also applies to energy efficiency, which is our “first fuel” in the road to net zero and our strategic lever, not only for sustainability, but for our energy security and competitiveness.”  

Alice Steenland, Chief of Strategy, Sustainability and Marketing of Signify:   

“Poll after poll has confirmed that citizens and businesses from across the world and across the political spectrum are - still!-  asking governments to be more ambitious on climate action. Europe now has an opportunity to lead by setting a 90% emissions reduction target by 2040. This target is science-based and feasible - we know because Signify set the same target for our own climate transition plan. If we can do it, the European Union can do it too - we can do this together.”  

Linda Sundberg, Head of Sustainable Investing of the Svenska Kyrkan (Church of Sweden):   

“A robust EU 2040 climate target is essential to give both investors and businesses the long-term clarity needed to accelerate the transition to a net-zero economy. Ambitious climate targets reduce uncertainty, guide strategic decisions, and will unlock capital for sustainable technologies and infrastructure. At the same time, the science is clear and so is our responsibility. The choices we make today will shape the lives of future generations. A bold EU target sends a strong message that Europe is committed to a just and science-based transition that protects both people and planet.”  

Hans Stegeman, Chief Economist of Triodos Bank: 

 “A bold 2040 climate target affirms the EU’s global leadership and moral responsibility. It gives investors confidence that the green transition is here to stay—driving sustainable investment, boosting competitiveness, and strengthening energy security."  

Margarita Pirovska, Director of  Global Policy of Principle for Responsible Investment (PRI):  

“Investors rely on regulatory certainty and clear policy signals to make long-term investment decisions and align capital for the EU transition to a competitive, fair, and resilient net zero economy.A science-based climate target of at least 90% GHG emission reductions by 2040 provides long-term market certainty towards EU 2050 climate-neutrality objectives, helps scale clean innovation, and will in the long run strengthen Europe's global green technology leadership. The PRI supports a strong 2040 target, detailed European sectoral roadmaps, and clarity on investment plans and vehicles to accelerate private financial flows for the transition.”  

Gonzalo Saenz de Miera, CLG Europe Chair & Director of Climate Change and Alliances of Iberdrola:  

“A robust emission reduction target of at least 90% by 2040 will provide clear strategic direction, supporting the alignment between decarbonization efforts and industrial value creation, whilst prioritizing direct emission reductions.”   

 Liz Minne, Head of Global Sustainability Strategy of Interface:

“The planet is at an inflection point. And bold, relentless action is needed to solve the global climate crisis. That’s why we’re ‘all in’ on carbon negative by 2040. Avoid, reduce, and store carbon—that’s how we’ll achieve our goal. Interface supports the call for the European Union to set a greenhouse gas emissions reduction target of at least 90% by 2040. Together, we can make more progress toward our climate targets, and an EU-led commitment for more action could be the driver for more companies to go ‘all in’ on climate.”  

Annika Ramsköld, Vice President for Corporate Sustainability of Vattenfall

"Vattenfall strongly supports a net 90% EU emissions reduction target for 2040, an ambition aligned with the Paris Agreement’s 1.5°C goal, and essential for accelerating the transition to net-zero by 2050.  Setting a clear and ambitious climate target between 2030 and 2050 provides investors with greater certainty to invest in fossil-free solutions by defining the pace of the EU’s decarbonisation pathway, thereby avoiding a too little too late scenario. This will steer society in the same direction – helping us, our suppliers, and our customers align around the goal of achieving fossil freedom. At Vattenfall, we contribute to this goal by ensuring that every step we take is supporting a future where everyone can choose fossil-free ways to move, make and live - anchored by our SBTI-certified commitment to reach net-zero by 2040."

Quotes from first launch of the letter in 2024 

Miguel Stilwell d'Andrade, CEO of EDP: 

“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”. 

Stephanie Pfeifer, CEO of IIGCC: 

“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: 

“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: 

“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.”