Multinationals call on EU to raise emissions targets

Shell, Tesco and Vodafone among firms arguing that a 30 per cent target for 2020 backed by a strong carbon price is vital to business interests

Tom Young, BusinessGreen, 26 Jan 2010

Leaders from 18 of the EU's largest companies, including Shell, Tesco and Vodafone, are today calling for the EU to raise its greenhouse gas reduction target for 2020 from 20 per cent to 30 per cent below 1990 levels.

The EU is poised to submit its formal emission target for 2020 later this week under the Copenhagen Accord agreement, and despite lobbying from the UK, France and others for it to unilaterally raise the target it is widely expected to retain its current position, pledging to cut emissions by 20 per cent by 2020 and offering to raise the target to 30 per cent if other large polluters make similar commitments.

In an open letter to European Commission president José Manuel Barroso, organised by the Prince of Wales' Corporate Leaders Group on Climate Change, bosses from some of Europe's largest companies, including Deutsche Telekom, Philips, Unilever and Kingfisher, supported the current stance and hinted that it would support attempts to raise the target to 30 per cent.

It argued that "a short-term GHG reduction target of 30 per cent by 2020 in tandem with similar commitments by other developed countries" was vital to the rapid development of a low-carbon economy.

The letter argues that despite the failure to agree a binding climate change treaty at the Copenhagen Summit, it is still in the economic interests of the EU to pursue more ambitious climate change strategies based around a binding international treaty and a global carbon market capable of delivering a robust price on emissions.

"Without continued leadership, the EU could see itself left behind in the clean technology race when we know that the US, China and other major emerging economies are already making large-scale investments in this area," the letter states.

It also applauded EU policies to subsidise green technologies and called for them to continue to facilitate long-term growth.

Garrett AG Forde, chief executive of Philips Lighting, warned that a lack of ambition in emission targets could hinder the move to a low-carbon economy.

"Now is not the time for the EU to step on the brakes and give up its leadership position," he said. "The EU should speed up the transition to a low-carbon society, as we firmly believe there is a wide range of benefits for consumers, the environment and the economy. This is why we urge EU policy leaders to maintain ambitious targets."

The move comes just days after the European manufacturing industry's lobby group the Alliance for a Competitive European Industry sent a letter to the European Parliament, Council and Commission urging it not to raise the 20 per cent target until "other major economies have also made substantial and binding commitments", arguing that to do so would jeopardise the competitiveness of European firms.

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