The 2040 Climate Goal Must Be Realistic
Some time ago, the European Commission put forward a recommendation to reduce greenhouse gas emissions in the European Union by 90 percent by 2040 compared to 1990. This interim goal is meant to ensure that we achieve climate neutrality by 2050. The Chamber [of Commerce] submitted several principles to the Ministry of Climate that must be considered in setting this climate goal.
In setting the 2040 climate goal, it is not only about how much CO2 emissions need to be reduced by that time to achieve climate neutrality by 2050, but also about which measures can be used to achieve this interim goal, the impact of these measures on society, including businesses and people, and who and to what extent can bear or is capable of bearing the costs associated with achieving the goal. Therefore, the goal setting must consider factors such as technological development and the global competitive situation.
Movement Towards Climate Goals Must Not Harm Business Competitiveness
We also emphasized in our letter to the Ministry of Climate that alongside achieving the climate goal, it is crucial to ensure the competitiveness of European businesses, including industrial companies. Transitioning to a low CO2 emission economy requires substantial investments. A precondition for such investments is creating a business environment in the European Union that offers investment security to companies. Currently, the rapidly increasing amount of EU regulations reduces business investment security and international competitiveness, leading to an unjustifiably high burden and increased costs. Therefore, in moving towards the 2040 climate goal, over-regulation must be avoided.
Other Regions Must Also Move Towards Climate Neutrality
The European Union must also strive to ensure that climate goals and the necessary measures to achieve them are adopted worldwide. If the rest of the world does not move on the same course, the EU's efforts may not significantly contribute to avoiding the negative impacts associated with CO2 emissions.
If regulations are not similar worldwide, European businesses could find themselves at a competitive disadvantage. Additionally, this could lead to a higher risk of carbon leakage. As a result, CO2 emissions may decrease in Europe, but at the same time, we could be importing goods or services that still involve significant CO2 emissions.