New guidelines: The European Commission recommends reducing emissions by 90% by 2040
On February 6th, the European Commission published a communication detailing the impact assessment on possible pathways to achieve the agreed-upon goal of making the European Union climate-neutral by 2050.
Based on this assessment, it recommended reducing greenhouse gas emissions by 90% by 2040, using 1990 as the reference year. This recommendation is in line with the recommendations of the European Scientific Advisory Board on Climate Change (ESABCC) and the EU’s commitments under the Paris Agreement.
The scientific basis for these actions is unquestionable; now, appropriate political strategies are needed to enable all stakeholders to achieve the goal.
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Paris Agreement Goal
The Paris Agreement, adopted at the United Nations Conference in Paris in 2015, aims to globalize efforts to limit global warming to below 2 degrees Celsius compared to pre-industrial levels and to pursue efforts to limit this increase to 1.5 degrees. The agreement includes commitments by countries to regularly report their CO2 emissions, develop and implement national climate action plans, and provide financial support to developing countries for climate change adaptation and transitioning to low-emission economies.
The Paris Agreement sets a long-term goal of achieving climate neutrality by 2050, meaning that global greenhouse gas emissions will be balanced by removing these gases from the atmosphere through capture technology or other means, contributing to climate stability for years to come.
New Reduction Recommendations
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To meet the goals of the Agreement, actions must be accelerated, especially in decarbonizing businesses. Hence, the new guidelines from the European Commission: achieving climate neutrality by 2050 must be preceded by a necessary reduction of greenhouse gas emissions by 90% by 2024. Importantly, the reference year is now set at 1990.
On the path to achieving net-zero emissions, the focus must now be on developing a sustainable and competitive economy and creating a healthier and safer future for European citizens.
The European Union must continue to adhere to EU climate law provisions and Paris Agreement commitments while developing a climate-resilient economy free from fossil fuels and other critical dependencies. Building a competitive industry based on clean technologies and ensuring a fair transition for all stakeholders is essential.
According to the European Commission’s communication, “legislative proposals will be presented by the next Commission after the European elections and agreed upon with the European Parliament and Member States in accordance with the requirements of EU climate law.”
How to Reduce Greenhouse Gas Emissions in Line with the EC Recommendation?
So far, the European Union has set two reduction targets within the EU. The first is the 2030 target, which aims to reduce emissions by at least 55%. The second goal is to achieve climate neutrality by 2050. Therefore, the communication regarding the 2040 target represents a proposal for another intermediate stage in achieving the 2050 goal.
Current policy frameworks put Europe on the right track to achieve the first goal. Another important role of the new Commission will be to establish policy frameworks for the period after 2030 to continue this path and achieve the agreed-upon climate target by 2040. Continuing to move away from fossil fuels will also require investment in clean technologies to accelerate the adoption of renewable energy sources and the removal of CO2 from the atmosphere for storage and use in industrial processes.
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How to Achieve Climate Neutrality by 2050?
To achieve the reduction outlined in the new recommendation, the European Green Deal must evolve into an agreement on industrial decarbonization, building on existing strengths such as wind, water, and electrolyzers. It is also necessary to increase domestic production capacity in growth sectors, such as battery production, electric vehicles, or photovoltaic cells. Introducing carbon dioxide emission fees and ensuring access to financing are crucial to achieving emission reduction goals by the European industry.
The energy sector plans to achieve complete decarbonization shortly after 2040, using various low-emission energy solutions, including renewables, nuclear, energy efficiency, and carbon capture and storage technologies. The newly established Industrial Alliance for Small Modular Reactors aims to enhance industrial competitiveness, improve energy efficiency, and ensure a stable supply network in the EU, thereby reducing dependence on fossil fuels. Policy frameworks after 2030 will be an opportunity to develop these policies and complement them with social and industrial initiatives aimed at a smooth transition away from fossil fuels.
The energy sector is leading the way in Europe’s decarbonisation and emissions reduction, and we must continue on this path towards 2040. In the 2030s we should see major progress in the transition away from fossil fuels, and an increasing share of renewables in our energy mix. We are sending a clear signal to investors that Europe is staying the course and offers them long-term predictability and stability. For our citizens, we are giving a clear sign that cleaner solutions are on the way, and that we are accompanying them in the transition.
Kadri Simson, Commissioner for Energy
The transportation sector should stop emitting carbon dioxide through a combination of technologies and emission taxation. Cooperation with the agricultural sector, both in production and beyond, is crucial for the success of the transformation, ensuring sufficient food production, fair incomes, and sustainable business practices.
Benefits of Adopting Greenhouse Gas Emission Reduction Targets
Setting a climate target for 2040 will help the European Union achieve its plan to achieve climate neutrality by 2050. This is a significant signal for industry, investors, and citizens, enabling them to make informed investment decisions and minimize the risk of investments that may not align with long-term climate goals. Long-term planning will enable the development of a competitive and sustainable society based on renewable energy and provide stable jobs.
Additionally, this action will increase Europe’s resilience to future crises by reducing its dependence on fossil fuel energy imports. The costs associated with climate change are significant, and their further increase could significantly reduce the EU’s GDP in the future. Therefore, reducing greenhouse gas emissions is not only essential for environmental protection but also for economic stability and social welfare.
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How Will the European Commission's Proposal Further Impact EU Citizens and Economy?
The transformation must be fair and provide security for all EU citizens, ensuring equal access to the benefits of the transition process. Actions taken now will help avoid transferring the consequences of our actions to future generations, caring for their well-being. It’s like building a solid foundation for a future home that will last and protect residents from any unexpected events.
Providing predictability and certainty is crucial for an effective transformation. A clear path forward will allow citizens, industries, governments, and investors to make wise decisions, minimizing the risk of investment loss and ensuring stability.
Increasing the competitiveness of the European industry in the race for clean technologies requires appropriate frameworks and support in the decarbonization process. The European Union must provide adequate resources to enable industry development and competition in the global market.
Ensuring strategic autonomy and energy supply security by phasing out fossil fuels and investing in renewable energy sources are crucial for ensuring the economic and geopolitical stability of the EU.
Adhering to the Paris Agreement’s agreements and environmental protection is a key element of reducing greenhouse gas emissions. EU funds must be used in accordance with the principles of climate law, scientific opinions, and impact assessments. Reducing emissions will also contribute to the protection of biodiversity and the improvement of ecosystem conditions, benefiting nature as a whole.
Actions to mitigate climate change are necessary to avoid worsening living conditions and improve human health by minimizing the effects of air pollution and extreme weather events.
Investing in transformation must be effective because the costs of passivity towards climate change will be significantly higher than continuing actions leading to a green transformation. The EU must effectively mobilize resources from both the private and public sectors to ensure sustainable economic development. This is akin to investing in appropriate winter reserves, which protect against abrupt weather changes.
We have just lived through the hottest year on record. The case for climate action is beyond doubt and requires planning now. Going forward, we will have to stand more firmly on two legs: a safe and healthy climate for all to live in, and a strong, resilient economy, with a bright future for business and a just transition for all. This communication we are presenting today is also a message to our partners around the world that Europe continues to lead the way in global climate ambition. Tackling the climate crisis is a marathon, not a sprint. We need to make sure everyone crosses the finish line, and nobody is left behind.
Wopke Hoekstra, Commissioner for Climate Action
Decarbonization - Where to Begin?
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Starting the decarbonization journey, a key step is awareness of our own greenhouse gas emissions. Transitioning to a path of sustainable development requires a thorough understanding of the impact of our activities on the environment. Therefore, it is worthwhile to start by calculating the emissions generated by our business. Plan Be Eco, an innovative startup, offers a tool that allows precise determination of emissions in each of the three scopes, as well as data allocation and customization of the tool to the specific structure of the company and supply chain. This enables companies to obtain a comprehensive analysis of their emissions and effectively develop a reduction strategy, thereby supporting global efforts to combat climate change.
