Twelve leading European energy companies sent a joint letter to Green Deal executive vice-president Frans Timmermans in advance of the commission’s official announcement of the much-anticipated European Climate Law calling for ambitious legislation that recognizes the benefits of an energy system based on renewables.
The seven companies are EDP, Enel, Iberdrola, Orsted, SSE, Statkraft, and Verbund and in their letter they said: “Embedding climate neutrality in law together with principles for future regulation will create regulatory predictability that can steer the investments necessary to deliver the transition to an economy based on renewable energy.”
“This predictability would be enhanced by setting an intermediate target in 2040aligned with EU’s climate action framework.”
They also set out eight key principles that they say “would be the right starting point for an EU climate law forming the basis for climate neutrality by 2050”:
- The cost of energy supplied and used in the EU should reflect the true costs to the climate. Costs of green-house gas emissions should be priced and internalised to incentivise the change to climate-friendly alternatives across all sectors.
- Tax and tariff regimes at both European and national level need to reflect the climate impact of the energy delivered to consumers. This includes a fair sharing of the decarbonisation financial effort among all energy carriers (e.g. cost of renewables support schemes).
- Discontinue subsidies to infrastructure projects that will not be compatible with climate neutrality by 2050.
- A just and fair transition leaving no-one behind should be a guiding principle and include focused strategies aimed at maintaining the EU’s competitiveness and minimizing distributional impacts. This requires promoting jobs, requalification, minimizing the negative impacts of changes in local industries and addressing energy poverty.
- All Europeans should have the right to choose a green energy product, when supplying their homes with electricity and heating.
- A well-functioning integrated and digitalized internal energy markets should be promoted to allow for a cost-efficient transition to a climate-neutral society.
- To inform policymakers it is essential that cost assumptions in energy system modelling should be based on latest available market data– both at European and national level.
- Circular economy and resource efficiency should minimize deprivation of resources and enhance the development of renewable energy and renewables-based electrification.
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