Brussels says EU needs to invest around 1.5 trillion euros a year to reach net zero target

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Brussels said the EU needs to invest around 1.5 trillion euros a year between 2031 and 2050 to reach its mid-century target of zero greenhouse gas emissions.

The figures are part of a European Commission draft document obtained by the Financial Times that calls for Brussels to cut emissions by 90 percent by 2040 and achieve “economy-wide climate neutrality” by 2050. It shows the city’s plan.

As the effects of global warming become increasingly clear, high levels of investment will far outweigh the huge costs of inaction, the document says. By limiting temperature rise to within 1.5 degrees Celsius above pre-industrial levels, the EU could save €2.4 trillion in economic losses between 2031 and 2050, with a net cost of fossil fuel imports of €2 trillion over the same period. It added that this could lead to savings of 800 billion euros.

The new 90% target is set at the lower end of the range recommended by the EU’s Scientific Advisory Committee and is seen as a way to accelerate climate action at a time when the economic damage caused by extreme weather events is increasing. Under the European Union’s climate law, EU governments have committed to reducing emissions by 55% from 1990 levels by 2030 and to net zero by 2050.

Some sectors of industry and agriculture argue that the requirement is too onerous in the aftermath of high inflation and the energy crisis caused by Russia’s invasion of Ukraine.

Farmers in particular have attacked environmental regulations, with protests spreading from the Netherlands to Belgium, Germany, France and Romania in recent weeks.

Leaders including French President Emmanuel Macron and Belgian Prime Minister Alexander de Croo said last year that the political implications of forcing consumers and businesses to change long-ingrained habits fueled fears of a backlash. , called for a “pause” of climate change legislation. .

One EU diplomat said that unless other capitals consider this 1.5 trillion euro figure to be good “not just for the climate, but also for things like green technology” He said it was unlikely that he would support it.

The draft law talks about the “opportunities” offered by the green transition, “to become a leading force in the clean technology sector, stabilize utility bills, create good jobs for the future, improve quality of life and reduce the worst “Protect yourself from the effects.” Preventing Climate-Related Hazards”.

The commission declined to comment.

According to the document, to achieve its goals, the EU will need to almost completely decarbonize its power sector by around 2040, shift the region’s workforce to green industries, and compare fossil fuel consumption to 1990 levels. According to the report, a total reduction of 85% is required.

Oil for ships, aircraft and other transportation will account for most of the remaining fossil fuel use, the report said.

Excluding transport and new vehicle purchase costs, the investment needed to reach the 90% target would be “nearly 660 billion euros” per year between 2031 and 2050. The Commission previously estimated the additional investment needed to meet the bloc’s 2030 targets as follows: 360 billion euros per year.

Capturing residual emissions will require a significant portion of the rapid scale-up of carbon capture technologies, which are still in their infancy. A separate draft outlining a carbon management strategy says the EU will need to capture 450 million tonnes of carbon dioxide per year by 2050 from current negligible levels to reach net zero targets. Suggests.

The 2040 document also points out that agricultural activities, including livestock breeding and the use of fertilizers, are projected to be the largest contributor to greenhouse gas emissions in the EU.

One way to reduce this “may be to better reflect the price of agricultural emissions in food value chains,” the document adds, adding that this could be incorporated into the region’s emissions trading system, which imposes a levy on polluters. He has hinted at the possibility of incorporating departments.

The document is an early draft, subject to rewriting, and is expected to be published by the EU’s executive branch on 6 February. This document will serve as a starting point for discussions on the 2040 target, which will be reflected in formal legislative proposals once the new committee is established. He took office after the EU elections in June.

It would also help establish the EU’s 2035 Nationally Determined Contributions, the emissions reduction targets that all countries must submit to next year’s UN COP30 climate change summit. This target needs to be agreed unanimously by the EU’s 27 governments.

The EU claims to be a leader in climate change policy, and policymakers believe it will compete as more countries move towards renewable electricity, carbon pricing and the adoption of a circular economy. We hope that we will be able to achieve this superiority.

According to the European Environment Agency, since 1980, climate-related weather events have caused 220,000 deaths in the EU and €650 billion in damages within the EU.