CEFIC sets out climate neutrality path

CEFIC has set out four key enabling conditions that it said are necessary to make the path to the EU’s 2040 climate target “realistic, economically viable and technologically feasible”.

To create market demand for low-carbon and circular products, the association said, the EC must present a comprehensive strategy by the end of 2025, table legislative and non-legislative proposals in 2026, and establish a functioning market by 2030.

To ensure access to cost-competitive energy and feedstock, CEFIC added, the EC should define a strategy supporting innovation across all technologies by the end of 2025. This should be accompanied by enabling policy to deliver internationally cost-competitive renewable and low-carbon energy and the EC should also present an EU vision for circular carbon feedstock.

It is also necessary to identify key electricity, hydrogen, CO2 and storage infrastructure by the end of 2025, and set timelines and milestones with Member States, so as to deliver critical energy and carbon infrastructure. Finally, to protect industry from global carbon leakage, the EC should develop a realistic post-2030 energy-trading scheme (ETS) and allow ETS installations to use international carbon credits for compliance.

Stressing the severe downturn in the industry, CEFIC concluded: “Discussions on the proposed 2040 climate target must be coupled with tangible actions by EU institutions and member states: clearly defined, traceable enabling measures and an adjustment mechanism in case these conditions are not met”.