Two separate reports calling for a qucker transition to a renewable economy have been published by business leaders.
In the first, launched by The Prince of Wales’s Corporate Leaders Group, companies warn that inconsistent, vague and unambitious EU policies are stifling investment and slowing the transition to a cleaner energy future. The report, 21st century energy: Business reflections on renewables in Europe, recommends the EU implements more ambitious and binding targets in the new Renewable Energy Directive, due to be agreed this year. Currently, the European Commission is proposing a non-binding, EU-level target of 27% renewable energy by 2030. The majority of companies interviewed for the report think the EU should raise the 2030 target.
Interviewees also call for better arrangements for an EU-wide energy market, and policy credibility and consistency to enable long-term decision-making. Whilst energy investments are considered over decades, only seven of the 28 EU Member States currently have targets in place beyond 2020.
Ikea Group is quoted as saying: “We need stable and ambitious policies since any uncertainty can hamper or delay corporate investments. This would enable us to realise our investments faster. The EU level can play an important part in increasing the harmonisation of the policies.”
Meanwhile, the Energy Transitions Commission called for governments, investors and businesses to accelerate clean electrification, decarbonise beyond the power sector and improve energy productivity, in order to halve global carbon emissions by 2040.
The commission includes representatives from businesses including Royal Dutch Shell, General Electric, BHP Billiton and HSBC.
Key conclusion of the commission’s report, Better Energy, Greater Prosperity, include:
- Falling costs of renewables and batteries make cost-effective, clean electricity unstoppable and essential to the transition to a low-carbon, energy-abundant world.
- There is still untapped potential to improve energy productivity – the energy intensity of GDP. Growth of 3% per annum could be achieved with the right policies effectively implemented.
- Rapid progress is now required on other technologies, including bioenergy, hydrogen and all forms of carbon capture and sequestration, to drive complete decarbonisation. But even with large scale CCS deployment, which is currently not on track, fossil fuels use must fall 30% by 2040, with rapid decline of unabated coal.
“We are ambitious but realistic. Despite the scale of the challenges facing us, we firmly believe the required transition is technically and economically achievable if immediate action is taken,” says Adair Turner, chair of the ETC.
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