Teppo Säkkinen, EESC member, Rapporteur for the EESC opinion on EU climate target for 2040, explains how the EU looks towards 2040 concerning climate policy
The European Parliament and the Council must establish a 2040 climate target for the European Union. The target is a midway point on the road to climate neutrality by 2050 that, opens up the next phase of European climate policy.
Europe needs to navigate its climate policy in a vacuum. The consideration of the 2040 target must be anchored in the global context. The breakthrough UN climate conference COP28 in Dubai called for all parties to align their policies with the 1.5-degree goal. The 2040 target will set the bar for other major economies.
Decisive climate action is vital for Europe as the World Meteorological Organization reports that Europe is warming twice as fast as the global average. Plus, some European regions are hotspots for multiple climate risks, such as wildfires, heat waves, water scarcity, flooding and erosion. Keeping climate change in check would prevent significant loss of life, health impacts and economic losses.
At the same time, the global economic and geopolitical landscape has become increasingly challenging. American subsidies and China’s dominance in clean technology supply chains impact Europe. Our industry was hit hard by the energy crisis caused by Russia’s war on Ukraine. Increased defence spending and ageing populations strain public economies.
Climate investment makes ambition a reality
Therefore, Europe must steer its course to climate neutrality in a way that safeguards its competitiveness, maintains its industrial base, and builds on a solid economic basis.
The European Economic and Social Committee was the first EU body to adopt a position on the 2040 target. The Committee supports the 90% emissions reduction target recommended by scientists while underlining that this can only be achieved through policies that ensure European competitiveness and a just transition and by utilising all zero and low carbon technologies.
European Commission President Ursula von der Leyen has already reaffirmed her support for the 90% target. In her speech to the European Parliament, she promised to focus on implementation and investment to “make it happen on the ground”. (1)
This gear change is well-founded. As the ambitious climate legislation adopted during the previous mandate kicks into force, climate policy is less about regulating and more about attracting investment. To achieve our targets, we need to ramp up unprecedented levels of investment in clean energy, decarbonising industrial processes such as steel and chemicals, and manufacturing net-zero technologies such as batteries and hydrogen electrolysers.
Energy spearheads the transition
The priority in European climate action should be phasing out fossil fuels. Industrial and land-based carbon removals have a crucial complementary role, but they should not substitute actual emissions reductions. Practices such as carbon capture and carbon farming need incentives to play their part. Faster decarbonisation in sectors where scalable and cost-efficient solutions already exist is necessary to accommodate more gradual progress in hard-to-abate sectors.
Electrification is at the heart of the transformation. An ambitious 2040 target will require the EU to electrify over half of the total energy consumption and almost double the power generation while decarbonising the power sector by 2040. This should be closely followed by heating and cooling.
The availability of abundant and affordable clean energy is the foundation for the decarbonisation of other sectors, such as industry, transport and buildings. At the same time, ditching fossil fuels for renewable and nuclear energy will boost European energy security. A 90% emissions reduction by 2040 could halve Europe’s import dependency on energy from over 55% in 2021 to a quarter by 2040.
Action at home for credibility abroad
Well-designed climate action can be Europe’s growth strategy for more prosperity and high-quality jobs. Leveraging the benefits of climate leadership will require an environment open to developing, adopting and scaling up new technologies in Europe. The EU should not only aim to improve self-sufficiency in net zero technologies and materials but also track and set targets for the export of European cleantech products and services.
Looking outwards while getting Europe’s own record straight is also vital to ensure successful global action on climate change. While Europe bears responsibility for major historical emissions, our share of current emissions continues to shrink. Limiting global warming to 1.5 degrees depends on collective action.
Engaging with other major economies and working with developing countries is, therefore, an integral part of European climate policy. Action at home gives credibility to climate diplomacy efforts on the international stage. Hence, the 2040 target serves both to provide visibility on Europe’s path to climate neutrality and to feed into global climate action.
