Cross-industry CEO Alliance backs EU plan to cut carbon emissions by 55% by 2030
- 12 business leaders meet in Paris to discuss ways to further support the EU Green Deal
- The European CEO Alliance believes that fighting climate change will require a collective effort by all EU member states and collaboration between the public sector and industry
- A strong carbon pricing signal on the European level is regarded as a key to achieving carbon neutrality by 2050 and cutting greenhouse gas emissions to 55% of 1990 levels by 2030
- Several cross-sector projects and policy recommendations will serve the global climate cause and foster sustainable growth and future-proof jobs.
As the EU Commission prepares to present its Fit for 55 legislative package, the European CEO Alliance has issued policy recommendations supporting a progressive and ambitious push to achieve climate neutrality. Tackling climate change requires strong collaboration between the public sector and industry, the Alliance announced after its meeting in Paris. The Alliance would welcome a review of the EU’s major regulatory instruments, in particular subsidies for technologies with high CO2 emissions. The CEOs’ proposals include sending a strong carbon pricing signal, accelerating measures to decarbonize mobility and transport, buildings and energy systems, speeding up the renewal of key industry sectors in the EU.
"I am very pleased to have been able to exchange views today with the companies that provide solutions for the implementation of the Green Deal, the decarbonization of the economy, green transition and energy efficiency. As the European Commission prepares to present its “Fit for 55” energy and climate package with measures to reduce greenhouse gas emissions by 55% in 2030 and achieve carbon neutrality in 2050, the mobilization of industrial and economic players will be essential to achieving our climate objectives together. " said Clément Beaune, Secretary of State for European Affairs in the French government.
Volkswagen Group CEO Dr. Herbert Diess: “Climate change will remain our greatest challenge over the next years and decades. The CEO Alliance fully supports the EU Commission’s climate goals, to which there is no alternative. Now it’s time to shift the political discussions towards getting it done. In an unprecedented move, the CEO Alliance with its industry-leading companies from across Europe calls for a carbon pricing signal covering all emissions across industries and countries.”
Schneider Electric CEO and Chairman Jean-Pascal Tricoire: “The upcoming EU policy package to cut carbon emissions by 55% in the next decade is needed. The key is to move from ambition to action. Corporations have a vital role to foster the energy transition and a responsibility to lead by example. Only collective efforts and collaboration between the public sector and industry will deliver sustainable growth and future-proof jobs. Together, we stand behind Europe in its journey for a swift and fair transition towards a carbon-neutral economy, and we are very happy to welcome the meeting of the CEO Alliance at the Schneider Electric’s office in Paris. Thank you to Herbert Diess for initiating and chairing this initiative.”
As one central instrument, Alliance members proposed a strong carbon price signal to achieve the EU’s climate targets. Carbon should have a price across the whole economy. The Alliance also called for continued enhancement of the EU’s Emissions Trading System (for power and heavy industry) and for the implementation of sector-specific cap-and-trade systems that would apply to mobility, transport and the buildings sector. Sector-specific systems could then converge beginning in 2030. Another proposal concerns a European carbon pricing system that would include measures to simultaneously achieve a social balance and emissions reduction.
Decarbonizing mobility, transport and buildings will be the major challenges. For the transport and mobility sector, electric mobility for passenger cars, light vehicles and heavy duty vehicles has proven to be the most efficient technology in terms of energy consumption and emission reduction. To foster the entire ecosystem around electric mobility, members of the CEO Alliance have initiated cross-sectoral projects to ramp up battery production and create a charging infrastructure across Europe.
Turning its attention to the EU Commission’s Buildings Renovation Wave, the Alliance supports ambitious renovation targets (of at least 3% p.a.) to accelerate the transformation of the building stock. Buildings should meet higher standards regarding energy efficiency, renewables and sustainable materials. The Alliance also calls for fossil-fuel heating systems to be rapidly replaced by rolling out electric heat pumps, district heating and digital solutions. The CEOs are committed to applying this recommendation to their companies’ own buildings.
The European climate targets require a rapid build-up of renewable power generation and the direct electrification of mobility, transport and heating/air conditioning for buildings. The CEO Alliance is working on a project to integrate power systems, in particular grids, in order to create a system based mainly on renewables and flexible solutions.
The CEO Alliance for Europe's Recovery, Reform and Resilience was formed in 2020 against the backdrop of the Covid-19 pandemic and the historic European Green Deal. The Alliance’s shared goal is to make the EU the world's leading region for climate protection while unlocking investments, fueling innovations in new technologies and creating future-proof jobs.
The members view themselves as an “action tank,” working together on cross-sector pan-European projects at scale: cross-EU charging infrastructure for heavy duty trucks, integration of EU power systems (in particular grids), digital carbon footprint tracking, sustainable and healthy buildings for the future of work and living, e-buses for Europe, green hydrogen value chains and the rapid development of battery production. Further projects are being prepared, including one involving low carbon steel. The CEOs will deliver their first tangible results and discuss implementation with high-level EU representatives at a summit set for autumn 2021.
The Alliance brings together 12 top executives from the energy, transport and technology industries: Björn Rosengren (ABB), Thierry Vanlancker (AkzoNobel), Francesco Starace (ENEL), Leonhard Birnbaum (E.ON), Börje Ekholm (Ericsson), Henrik Henriksson (H2GreenSteel), Ignacio Galán (Iberdrola), Frans van Houten (Philips), Christian Klein (SAP), Christian Levin (Scania), Jean-Pascale Tricoire (Schneider Electric) and Herbert Diess (Volkswagen). McKinsey & Company is serving as a knowledge contributor for the CEO Alliance and is providing additional research and data.
The Volkswagen Group, with its headquarters in Wolfsburg, is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. The Group comprises twelve brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. The passenger car portfolio ranges from small cars all the way to luxury-class vehicles. Ducati offers motorcycles. In the light and heavy commercial vehicles sector, the products range from pick-ups to buses and heavy trucks. Every weekday, 671.205 employees around the globe produce on average 44,567 vehicles, are involved in vehicle-related services or work in other areas of business. The Volkswagen Group sells its vehicles in 153 countries.
In 2020, the total number of vehicles delivered to customers by the Group globally was 9.31 million (2019: 10.97 million). Group sales revenue in 2019 totaled EUR 252.6 billion (2018: EUR 236 billion). Earnings after tax in fiscal year 2019 amounted to EUR 14.0 billion (2018: EUR 12.2 billion).