EU leaders demand industry support in setting new climate target

European Union leaders plan to agree on a new climate target for 2040, but are demanding that the bloc provide greater support for industries such as steel industry and automotive manufacturing in order to achieve it.

This was reported by Reuters, citing draft conclusions from the EU summit to be held on October 23.

The document, which the agency has seen, states that the bloc’s leaders will agree that EU countries and lawmakers can continue to set climate targets for the period up to 2040. However, the European Commission will be required to develop a stronger enabling framework to support industry and citizens during the green transition.

The draft conclusions state that particular attention should be paid to traditional industries, such as the automotive industry, and energy-intensive sectors, such as metallurgy and chemicals, in order to maintain their sustainability and competitiveness in the global market.

The document does not call for specific funding or changes in EU policy in exchange for supporting the emissions reduction target. However, European diplomats have said that some countries want changes to the CBAM, while others want to ease the bloc’s phase-out of new internal combustion engine cars by 2035.

The draft states that the EU should achieve its climate goals in a “technologically neutral way” — a phrase often used by governments to counter the bloc’s policy of restricting certain technologies.

The bloc had planned to agree on new climate targets for 2040 and 2035 back in September. However, a number of countries, including Germany, France, and Poland, demanded that government leaders first discuss the 2040 target at the October summit. This reflected concerns about the cost of climate measures and pressure to increase defense spending and revive local industry.

In September, France demanded that the EU commit to strengthening trade protection for the steel industry and review its carbon tax before supporting the bloc’s proposal to accelerate emissions reductions to 90% by 2040.