Remarks by Executive Vice-President Ribera and Commissioner Hoekstra at the press conference on the proposal for an EU climate target for 2040
Executive Vice-President Ribera
Many thanks, Paula.
And many thanks to all of you.
The EU climate target for 2040 is part of the Political Guidelines presented by President von der Leyen to the European Parliament when asking for the support to this mandate and College.
We want to build the conditions to shape the future. We know that we still need to work on further developments but it is important to count on a general and reliable scope that is fit for purpose in terms of competitiveness and modernisation of our economy to become fully decarbonised.
That comes along with what science tells us to do, with our commitments both domestically and internationally, and identify a safety net of flexibilities in case they are required.
We think this is a moment where we need to build hope.
We understand that we need to bet on a competitive and modern economy in Europe, but also to provide the answers to the citizens remembering that we are committed to a high-quality of life for all Europeans.
Around 85% of Europeans say that climate change is one of our biggest threats and it is important in a system like ours to be ready, to anticipate, to build on an economy and on a society that is fully resilient and that ensures that we do not keep on endangering the climate system or weakening our economic capacities.
So we want to bet on competitiveness and responsibility. We want to respond to these concerns being expressed by the society to be ready when extreme events caused damaged, impacting on the most vulnerable and on the middle class.
We want to build resilience. We want to build adaptation. We want to ensure that we dedicate the public resources to bet on a much more broader and climate-proof economy.
We know that this will require building on skills, jobs, the creation of wealth, and long-lasting profitable businesses as we have already stated in the Competitiveness Compass, in the Clean Industrial Deal and Clean Industrial State aid Framework that we adopted last week.
Betting on innovation, using resources in a smart way, facilitating the right conditions and consistent milestones in the horizon is part of what lays behind this proposal.
We trust science. We trust multilateralism. We are committed to the Paris agreement and by our own domestic regulation.
We want to bet on people, on industry, on individuals to be sure that together we, Europeans can do it. Even if it is challenging we want to respond to the most existential challenge of our generations with full responsibility, building together.
We want to be at the centre of our responsibility is asking us, deserving our time, efforts and building the opportunities to deliver.
Commissioner Hoekstra
Ladies and gentlemen, a very good morning to all of you.
We’re finally here. On a very hot day, some would call that very timely.
Today, we’re taking the next step in the EU’s path to boost competitiveness, strengthen its independence and cut emissions.
We’re doing so by putting forward an amendment to the European Climate Law to reduce emissions by 90% by 2040.
I know many of you have been asking for this and many are thinking that it’s taken some time to get here.
So let me be straight and open about it: this is a politically sensitive discussion.
In my experience, politics is as much about process, communication, and building solid majorities as it is just about content.
That’s why we deliberately took a lot of time to think about this strategically, to engage with Member States, business, civil society and MEPs.
Let’s zoom out for a second.
The context in which Europe is operating, regardless of this specific topic, is extremely difficult.
There is a huge amount of geopolitical turmoil.
There are collective safety and security issues.
And on top of that, there are worries about sustainable economic growth in many of our Member States.
We’re therefore moving forward. And we’re doing it because it makes sense – from an economic, security and geopolitical standpoint – to stay the course on climate.
It’s about protecting our people from extreme weather events and global warming.
The Eurobarometer published on Monday shows that 85% of Europeans are worried about climate change. As I’ve said to you before, we need to manage the paradox. Many of those same citizens also worry about what climate action might mean for them so bringing them along is therefore of the utmost importance.
It’s about protecting our economies from economic losses resulting from climate change.
To give you one example, Slovenia lost 11% of GDP following its devastating floods. More examples unfortunately are available from all over the Union.
It’s about becoming more independent and resilient – the EU is still paying billions of euros every single year to import oil and gas.
It’s about regaining competitiveness.
In our view, decarbonisation is a powerful growth engine.
If we do it right – and I’m convinced that we will – it can fuel investment in innovation and clean jobs.
Solar can go from strength to strength. Batteries have huge potential across the Union. We also have wind and geothermal. So let’s make sure Europe is going to be a leader in clean tech.
Fundamentally, it’s about making a strong business case for investment in this clean transition. About leading the next S-curve in technology and innovation. About investing in clean tech.
So let’s give companies the predictability that they are rightfully are demanding from us.
They need to know they’re going to get a return on their clean investments.
Ladies and gentlemen,
Today, for all these reasons, we are presenting a reduction target of net 90% by 2040.
We are clearly ambitious. And yet, we are being pragmatic and flexible on how to achieve it.
It is a huge transition, and it’s important to be non-dogmatic about how to reach success.
A lot has been said about flexibilities. So let me dive right in.
First, we will allow for a limited amount of high-quality carbon credits outside the EU.
These carbon credits will have to be verifiable, certifiable and additional. Only then will it truly help in building the bridge with our friends all across the globe.
This will give breathing space for hard-to-abate sectors.
It will also open new markets for durable carbon dioxide removals technologies.
Second, we will integrate permanent European carbon removals into the Emission Trading System.
For example, a European factory that stores CO2 from bioenergy can generate and sell allowances, thereby making money from the ETS. That’s not possible today.
In our view, this will build a much stronger business case for companies to capture CO2 and store it.
Third, we will provide greater flexibility across pieces of legislation and sectors between 2030 and 2040.
Each Member State is different and faces different challenges in reducing emissions in different sectors.
This would allow a Member State, for example, to compensate for its struggling land use sector with overachieving on reducing emissions on waste and transport.
On top of these three flexibilities, we need to make sure we build a strong enabling environment with clear pre-requisites. This is the conversation we need to be having in the next year or so.
We have set out a framework for our post 2030 climate and energy legislation.
We will take the next year or so to build the system and get the ‘how’ right.
We will look at national specificities, cost-effectiveness, simplicity and efficiency. Frankly speaking, many of the elements that are part of the Clean Industrial Deal.
And yes, technological neutrality will also be part of the picture, as it should be.
And last but not least, we’re continuing to deliver on our Clean Industrial Deal commitments:
We have simplified CBAM, exempting 90% of companies, while keeping in place the 99% of emissions.
We are announcing today our solution for CBAM exports.
Also today, we’re coming with tax incentives to encourage investments in clean technologies and industrial decarbonisation, through measures that Member States will have to take, like accelerated depreciation and tax credits.
It’s up to them but we’re convinced it’s a very good idea going forward.
We have a Clean Industrial State Aid framework with a whole range of measures over the coming months.
The list goes on.
Ladies and Gentlemen,
We are staying the course on the EU’s quest to decarbonise.
Once agreed, today’s proposal will give us a true North.
We have listened to the science – this is the strategically smart thing to do for Europe.
We know why we’re doing it – for economic, security and geopolitical reasons.
We know what we’re doing – a 90% reduction by 2040.
And we have a pragmatic approach for how to make it work – three impactful flexibilities, a strong enabling environment and a Clean Industrial Deal.
We are ambitious. Pragmatic. Flexible.
We’re taking a different approach, but with the same objective to achieve net-zero by 2050.
For our people and businesses. For our economy. For a stronger more resilient Europe.
Thank you very much!
