IIGCC report: Ambitious EU 2030 action essential for achieving net zero emissions
This report sets out policy recommendations for policymakers on the necessary increase in the EU’s 2030 climate targets. This includes clear investor support for raising the EU’s greenhouse gas emissions target to ensure “at least” a 55% reduction in emissions by 2030. The importance of concrete, near-term, sector-specific market signals from policymakers that can guide investors’ decision-making is also made clear.
The target is of critical relevance to the future competitiveness and growth of member states, including delivery of the EU’s commitment to a sustainable economic recovery to COVID-19. This is made clear in a supporting IIGCC press release, with supporting comment from leading European investors.
Overall key messages covered by the report include:
- At least a 55% reduction in emissions is required to limit global warming to 1.5 degrees.
- A high level of ambition for 2030 is needed to ensure an orderly transition to net zero emissions between now and 2050. An updated EU renewables target and EU energy efficiency target each of over 40% is supported by investors.
- A 55% reduction in emissions by 2030 would be possible by upscaling mature technologies and accelerating the market development of others; further reductions above 55% are possible with additional technology-based efforts and/or combining these with lifestyle changes.
- Clarity on the net zero transition pathway for each sector is needed from policymakers, with concrete, near-term, sector-specific market signals that can adequately guide investors’ decision-making.
- Further dialogue between investors and European Commission and member state policymakers, on further development and implementation of the EU’s Green Deal policy agenda, is strongly encouraged by investors.
The report outlines why weak climate targets would fail to provide the strength of market signal needed to mobilise investors and attract the high levels of private finance required to fully fund the European Green Deal. Therefore, a high level of ambition for 2030 is needed to support a more orderly and cost-effective transition in achieving net zero emissions, between now and 2050.