EC recommends reducing greenhouse gas emissions in the EU by 90% by 2040

EUROFER commented on the announced climate goal

The European Commission has recommended that the EU reduce net greenhouse gas emissions by 90% by 2040 (compared to 1990 levels). This is reported on the institution’s website.

The EC also outlined the measures necessary to achieve this goal. In particular, it refers to the need to fully implement the agreed EU framework for reducing emissions by at least 55% by 2030 and decarbonize industry based on existing advantages (wind power, hydropower, and electrolyzers). To boost the latter, the European Commission, among other things, has proposed new measures to regulate carbon emissions from industry in the EU, which include investments in technologies that capture and store CO₂ and reuse it.

«The 2040 climate target will also help European industry, investors, citizens and governments make decisions this decade that will help the EU reach its goal of climate neutrality in 2050,» the EC said.

The recommended climate target will be discussed with the European Parliament and Member States, and the next European Commission will put forward legislative proposals on this basis.

According to Axel Eggert, CEO of the European Steel Association (EUROFER), EU steelmakers support the bloc’s goal of climate neutrality by 2050. The industry has launched more than 60 projects that, if effectively supported, will ensure significant emissions reductions by 2030.

«The 90% target for the entire EU by 2040 means almost complete decarbonization of energy-intensive industries such as steel. In the absence of proper enabling conditions and a sharp increase in investment needed for the transition, such a target calls into question the economic and technical feasibility of the EU’s climate policy and its interaction with other policies such as energy, trade and competition. This could contribute to deindustrialization, thus undermining the EU’s resilience and strategic autonomy,» he emphasized.

The association believes that climate ambitions should be realized through innovation and investment in Europe.

EUROFER once again called on the EU to ensure access to clean electricity and hydrogen in unprecedented quantities, as well as to the necessary raw and secondary materials. In addition, the organization emphasized that a strong trade policy is needed to level the playing field with other regions that do not share the same climate ambitions, including an effective Global Agreement on Sustainable Steel and Aluminum Production.

As GMK Center reported earlier, in the second quarter of 2023, the European Union reduced greenhouse gas emissions by 5.3% compared to the same period in 2022, to 821 million tons (CO₂ equivalent). Over the same period, the EU’s GDP remained stable, registering a slight fluctuation (+0.05% y/y).