Eurochambres position on the EU climate target 2040


The EU Climate target 2040 will profoundly affect European businesses in their journey towards climate neutrality by 2050. Eurochambres emphasizes the need for pioneering energy technologies to unlock new business opportunities. Key innovations, like CCS/CCU, are crucial for achieving climate goals. Streamlining permitting procedures and fostering knowledge transfer between businesses and academia are therefore essential. Concerns arise regarding the CBAM's impact on international competition and carbon leakage protection. The chamber network also warns about financial challenges faced by SMEs in securing sustainability financing due to overburdening regulations. However, despite the challenges, increased climate protection can offer business opportunities under favourable conditions.

Why chamber network considers the EU climate target 2040 relevant: the transition to climate neutrality entails profound changes in production methods that have a considerable impact on the European economic landscape. The ongoing and new legislative and non-legislative initiatives of the Green Deal have direct or indirect repercussions on businesses. These specific impacts will only fully unfold once member states introduce and implement these initiatives.

Nevertheless, the direct consequences for businesses are evident through measures such as the European Emissions Trading Scheme (EU ETS). The increase in CO2 prices caused by the EU ETS has a direct impact on the profitability of plants that are obliged to trade emissions. This in turn affects electricity prices, which simultaneously affects the economy. In sectors not covered by the EU ETS, the EU influences businesses through the Effort Sharing Regulation and sector-specific legislation. In addition, policy decisions made under the Green Deal significantly determine the business environment for companies. To achieve climate and environmental protection goals, significant private sector investment for operational restructuring is vital. Last year's energy crisis in Europe has also underlined the economic need for secure, climate-friendly, and affordable energy.

As the chamber network, Eurochambres is certain that increased environmental and climate protection can offer opportunities for European businesses under the right conditions, meanwhile being wary of possible "carbon leakage" risks resulting from unilateral action by the EU.

The PDF version of the position can be downloaded here.