Fortum’s position on the EU 2040 climate target

Fortum welcomes the proposal for a 2040 climate target and emphasises the importance of early action in achieving it. We favour a target of around 90% net emission reduction by 2040, with distinct targets for emission reduction and carbon removal.

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Fortum submitted its response to the EU Commission's consultation on the 2040 climate ambition on 22 June 2023. Our 2040 position aligns with the established goals of the Paris Agreement and supports both the EU's 2050 climate neutrality goal and the 2030 target of at least a 55% emission reduction from 1990. The early and ambitious target setting will not only offer investment clarity, but also anchor the EU as a leading region for climate technology implementation.

In our position, we further explore technology and sectoral pathways towards achieving the 2040 emission reduction targets. The power sector should lead the way, with renewable and carbon-free electricity being critical for the decarbonisation of other sectors, such as industry, transport, and heating and cooling. The bulk of the energy will come from intermittent renewables, but from the system perspective, it is crucial to have a balanced mix of variable, firm and flexible clean electricity generation. Already today both nuclear and hydropower contribute significantly to carbon-free electricity in the EU and both are increasingly needed going forward if the EU is to meet its climate ambition.

Our position also addresses the challenges of industrial decarbonisation, highlighting the need for considerable investments in existing assets and large greenfield projects, alongside public funding and de-risking instruments for first movers. Furthermore, we call for a systemic view of Carbon Capture, Utilisation and Storage (CCUS) as part of a wider solution portfolio.

Lastly, regarding the EU climate policy architecture, we suggest enhancements of the existing framework rather than new major legislative packages. We recommend an extension of carbon pricing across all sectors, and urge the EU to link its emissions trading system (ETS) with similar systems globally. Additionally, we propose that the 2040 target framework should focus primarily on emission reduction policies rather than specific energy efficiency or renewable energy targets.

Read our position in full: 

Fortum’s position on the EU 2040 climate target

More information:

Kari Kankaanpää

Head of Public Affairs Finland
Tel: +358 50 453 2330
kari [dot] t [dot] kankaanpaa [at] fortum [dot] com

Tatu Hocksell

Public Affairs Specialist
Tel: +358 44 062 0940
tatu [dot] hocksell [at] fortum [dot] com

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