TES welcomes the EU’s proposed 2040 Climate Target and Industrial Carbon Management communications
Today, the European Commission published its 2040 Climate Targets and Industrial Carbon Management communications. These two initiatives are key in ensuring that Europe remains a global leader in the fight against climate change and committed towards its 2050 target of climate neutrality.
TES welcomes the European Commission’s Communications on a recommended emissions reduction target for 2040 and its ambitious pathway to reduce emissions by 90% by 2040 and ensure that Europe can achieve climate neutrality by 2050. A comprehensive and holistic assessment of all sectors is essential to achieving this target. To ensure this can be achieved, TES calls on the European Commission to set more ambitious targets for RFNBOs and renewable molecules, including green hydrogen-based e-NG (electric natural gas), produced both domestically, and imported. At COP28 the world collectively aligned around the need to triple the renewable energy capacity installed by 2030. Now, we need to clearly signal worldwide the need for renewable molecules in sectors that are difficult to decarbonise.
In addition, TES endorses the European Commission’s communication on the Industrial Carbon Management Strategy, which acknowledges the evolving role of CO2 from being a waste material to being recognised as a valuable resource. TES produces e-NG from sustainable sources of CO2, such as biogenic carbon which, through methanation, enables the seamless transport of renewable H2 over large distances using existing infrastructure. By recognising the need for a holistic CO2 strategy which encompasses infrastructure development, CO2 standards, and a clarification that RFNBOs can be used by ETS sectors without surrendering allowances, the Commission is creating the right framework and legal clarity to help decarbonise hard to abate industrial users. The European Commission’s plan to foster collaboration with international partners to effectively align carbon pricing frameworks in order to prioritize emission reductions globally, is also welcomed by TES.
TES now calls on all policy makers and candidates in the upcoming EU elections to endorse these goals and ensure that the right tools are developed and implemented at national level. This will provide the right signals for the market to invest into bankable projects and deliver on an affordable and efficient transition. TES is ready to engage in the dialogue that will take place in the coming months and after the elections and will support the introduction of this proposal into legislation.
Marco Alverà, CEO and Co-Founder of TES, commented: “To meet the EU’s targets for climate neutrality by 2050, we need to urgently close the ambition to action gap. The 2040 Climate Target and Industrial Carbon Management strategies put us on the right path. Domestically produced or imported renewable molecules such as e-NG will play a central role in reducing greenhouse gas emissions and will enable a cost-effective, immediate transition for end users.”