150 companies for ambitious EU climate target by 2040

Brussels – Around 150 European companies and investors are calling for a reduction of CO2 emissions in the EU by at least 90 percent by 2040.

“A robust climate target and the decarbonization of our economies will improve the EU’s resilience to shocks, energy security, and competitiveness,” they write in an open letter addressed to the European Commission, the members of the European Parliament, and the heads of state and government of the EU.

“Emissions reduction should be given absolute priority”

The reduction of 90 percent should be seen as a minimum and not a maximum for ambition, the signatories further demand. “Emissions reduction should be given absolute priority, with measures to enhance the decarbonization of all economic sectors, accelerate the transition to clean energy, and increase energy efficiency to be taken.” Among the signatories are German companies such as SAP, the Otto Group, and Allianz.

No binding target by 2040 yet

So far, the established targets in the EU are to reduce CO2 emissions by 55 percent by 2030 compared to 1990 and to become climate-neutral by 2050 – meaning not emitting more greenhouse gases than can be reabsorbed. There is currently no binding interim target for 2040. Last year, the EU Commission recommended setting a reduction of at least 90 percent compared to 1990. The agency’s legislative proposal is expected by the summer break, after which it will need to be negotiated by the EU countries and the European Parliament.

Some in the European Parliament and among the EU states find a reduction of 90 percent by 2040 too ambitious. EU circles say that while the Commission wants to stick to the 90 percent target, it also aims to create more flexibility to achieve it. This includes recognizing climate certificates from non-EU countries. (May 27)