Businesses urge the EU to set a 90% climate target by 2040 and prioritise climate action
13 June 2024 - Paulig Group, Robeco, PKA, Revenga, Haga Intiative, EMZ, East Capital, Euroheat & Power, Revenga Smart Solutions and CCLA Investment Management joined over 100 businesses and investors calling on the EU to place climate at the centre of the strategy that aims to increase the EU’s competitiveness, resilience and energy security.
In a letter, business and investor leaders, including Ingka Group (IKEA), Unilever, Google, IIGCC, Iberdrola, AVEVA, EDP, H&M and Polestar, call for the EU to set a target of at least 90% greenhouse gas emissions reduction by 2040 and place climate at the heart of the EU’s strategic priorities. They consider that robust climate targets not only benefit the climate and environment, they also contribute to making the European economy more resilient and competitive, enable the creation of high-quality jobs and cost savings that citizens rightly expect, while improving the health and well-being of people. Targets provide businesses and investors with a clear sense of direction to step up action and investments to transition towards more sustainable business models and rapidly lower our emissions.
EU leaders are putting the finishing touches to the EU’s Strategic Agenda, setting the strategic priorities for the next five years. We urge them to stay committed to the European Green Deal and place climate at the centre of these priorities.
Ursula Woodburn, Director of CLG Europe and CISL Europe, stated:
“There is no doubt, climate change is multiplying the risks we face as ecosystems, economies, and societies. 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.”
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.
Maria Mendiluce, CEO, We Mean Business Coalition said:
“Science has recently shown us climate change is accelerating beyond our best prediction and while we work out the unknowns it is imperative we push for more and faster. Businesses and investors are demanding bold action. An EU target of at least 90% emissions cuts by 2040 will help us retain the stability needed for society and economies to function and will drive the essential shift from fossil fuels to clean energy.”
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.”
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.”