Climate Leadership Coalition (CLC) welcomes the European Commission’s communication on Stepping up Europe’s 2030 climate ambition – 2030 Climate target plan. The communication gives several positive signals for low carbon investors and can be strengthened by a carbon budget.
The plan recognizes the enormous upfront energy-related investment needs and estimates that to achieve the new 55% target by 2030, the EU will need to invest annually €350 billion more during the next decade than it did during the previous decade. The cumulative additional investment need for 2021 – 2030 would thus be €3,500 billion. Most of the investments will need to come from the private sector and public funds can accelerate the pace. For example, by using 37% of the €750 billion NextGenerationEU funds as proposed by the Commission, €277 billion will be spent directly on the European Green Deal objectives contributing about 8% to the additional investment needs for the next decade.
In order to attract private investments, corporate decision-makers and company boards need to have positive answers to these questions:
- Will there be sufficient demand and markets for the new products and will the new products be acceptable?
- Will the new investment lead to profitable business?
- Is there adequate public support to develop new products or industrial processes on time?
“CLC thinks that this 2030 Target Plan addresses these issues well and proposes new methods and policies to speed up the transformation. We congratulate the EU Commission on understanding the needs of private investors. A transparent carbon budget for the total remaining quantity of greenhouse gas emissions would strengthen the policies further. We were pleased that the carbon budget was a part of the proposal by the European Parliament’s ENVI Committee and we call on the EU Commission, European Council and full EU Parliament support for this,” says Jouni Keronen, CEO of the Climate Leadership Coalition.
Read CLC’s full statement: https://clc.fi/2020/09/25/climate-leadership-coalition-welcomes-the-commissions-proposal-for-the-2030-climate-target-plan-and-the-carbon-budget-proposal-by-the-european-parliaments-envi-committee/
More about CLC’policy proposals here.
More information: Jouni Keronen, CEO, Climate Leadership Coalition email@example.com, tel. +358 50 453 4881