An important task of the next Commission, together with the member states and European Parliament, will be to lay down an action plan with the aim of reaching economy-wide carbon neutrality by 2050 whilst ensuring that all sectors contribute evenly. Fortum believes that negative emission technologies are a key complement to EU climate policies.
Carbon pricing combined with increased cross‑sectoral flexibility allows for the decarbonisation of the European economy in a most cost‑efficient way.¹ A decarbonised and flexible power sector with the support of a highly reinforced grid infrastructure will serve as an essential enabler to the direct and indirect electrification of key contributing sectors (industry, transport, heating and cooling). Carbon‑neutral hydrogen will play a key role in decarbonising parts of the industry and facilitate the integration of renewables in the electricity system.
EU climate policy should also focus on the demand‑side and growing climate orientation amongst EU citizens and businesses and lay the foundation of a market for low-carbon and recycled products (transparent information about carbon footprint and recyclability).
Mobilising private financing is crucial in leveraging the massive investment needs involved in the new European green deal. Likewise, maintaining a competitive business environment, where companies are able to choose between available technologies based on economics and climate‑related incentives, remains key.
- Cross-sectoral flexibility refers to the idea of integrating the energy-consuming sectors - buildings (heating and cooling), transport, and industry - with the power-producing sector.