Europe CEOs Join Lawmakers In Urge For Massive Clean Energy Push

A group of 40 European Union lawmakers and chief executives across the industry called on the bloc’s top officials to ensure that a planned Clean Energy overhaul speeds up the deployment of renewables and helps the region’s producers in an unprecedented shift to climate neutrality.

Europe CEOs Join Lawmakers in Urge for Massive Clean Energy Push

By Ewa Krukowska

The European Commission needs to show ambition and determination to make the EU’s energy system fit for a stricter 2030 emissions-reduction target, they said in an open letter to Commission President Ursula von der Leyen and the bloc’s climate chief, Frans Timmermans.

The EU regulatory arm is due to unveil on July 14 a set of measures to align its economy with the Green Deal, whose overarching target is to make Europe the world’s first net-zero emissions continent.

“Many companies in the European Union are ready ‘to walk the talk’, so should the European Commission,” the group, which includes CEOs of Allianz SE, Volvo AB, ThyssenKrupp AG, Royal Dutch Shell Plc, Siemens AG and 17 other companies said in the open letter seen by Bloomberg News. “We must not fall behind in our actions. Now is the time to act and be resolute.”

The EU last week gave its final approval to strengthen the 2030 emissions-cut goal to at least 55% from 1990 levels, compared with the previous objective of a 40% reduction. Under the reforms to be proposed next week, it is set to increase the goal for renewables to between 38% and 40% of energy consumption by the end of this decade, up from the current 32%.

Reducing industrial greenhouse-gas emissions is one of the biggest challenges of the European transformation. While power producers in the EU cap-and-trade emissions program cut pollution by 15% last year, manufacturers registered a drop of an average 7%, with industrial output also affected by the pandemic.

Accelerating the transition requires a massive uptake of clean energy, said the chief executives of ArcelorMittal SA, Iberdrola SA, Orsted A/S and Titan Cement International SA.

To lead in the shift to low-carbon technologies and innovations, Europe needs infrastructure, access to abundant supplies of power from renewables and fast introduction of new processes for the market at competitive energy prices, according to the letter.

Without strong policies and bigger investments, the region will risk delaying emissions cuts, hindering competitiveness and undermining credibility to deliver on climate targets.

The signatories of the letter, who also include 18 EU Parliament members across political groups, called on the Commission to ensure that the planned reforms abolish grid bottlenecks, enable free flow of energy between countries and avoid barriers for the integration of clean power.

“We are still far from the needed volumes and capacity in terms of renewable energy to unleash the industrial electrification business case,” they said. “Global competitors are moving fast. We must not fall behind in our actions.”

Originally published at Bloomberg

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