Iberdrola Joins The European Business Ambition Against Climate Change

Iberdrola joins the European business commitment in the fight against climate change. The Basque electricity company, the first in the 'old continent' and the second in the world in terms of market capitalization, has made this clear, in black and white, together with more than 100 other executives and CEOs of the main European companies in a letter that has been drafted through the 'Corporate Leaders Group' (CLG).

The business statement launched in March to the European Council, European Commission and members of the European Parliament calls for "a net reduction of at least 90% of greenhouse gas emissions by 2040". Its intention is that European administrations take action and act without further delay.

The Declaration of European Business Leaders seeks to contribute to the strategic focus of the future European agenda, highlighting the need to adopt an industrial policy framework that creates the necessary conditions to favor investment and improved competitiveness as well as the conditions to accelerate investments in the necessary energy infrastructures to move towards an electrified model, primarily based on renewables

"We come to you as business leaders and investors, long-time supporters of strong EU climate targets. These targets provide us with a clear direction to step up action and investment to transition to more sustainable business models and rapidly reduce our emissions," they say in the letter.

The business leaders understand that a strong target backed by "a smart, ambitious and coherent package of supportive policies will decarbonize our economies, drive innovation and economic opportunities for businesses across all sectors." CLG is clear that the measure will deliver the quality job creation and cost savings citizens expect, while improving the health and well-being of its population. "A well-designed target must also be consistent with just transition, where costs and benefits are fairly distributed and the most vulnerable are protected," they state in the letter.

This target, based on scientific data, reflects the urgency and benefits of near-term action to drastically reduce emissions by 2040. "The 90% target should be considered the floor and not the ceiling of ambition," they say.

This global industrial strategy, guided by a "competitive sustainability" approach, will enable the EU to lead the global race to develop sustainable ecosystems and industries.

ELIMINATING FOSSIL FUEL SUBSIDIES

"Fossil fuel subsidies should be eliminated, freeing up funds that could be reallocated to the development of clean technologies," the business leaders make clear in the letter.

The CLG calls on the EU to establish a policy environment that phases out fossil fuels in all sectors of the economy, accelerates electrification and decarbonization of the power sector with renewables and low-carbon electricity, ensures access to energy infrastructure and large-scale implementation of energy efficiency measures in industry and buildings.

They also understand that the EU must seize the opportunities offered by the circular economy and eco-design to address emissions from materials production. The companies recognize that nature restoration and sustainable land use will play a key role in increasing the EU's ability to mitigate and adapt to climate change.

"The COP28 agreements have underlined the importance of accelerating emission reductions. A strong target will enable the EU to keep its climate commitments and play a leading role in phasing out fossil fuels, tripling renewable energy capacity and doubling global energy efficiency rates by 2030," they assert.

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