🇪🇺 New EU chiefs double down on 90% emissions reduction target by 2040

👏 During a recent parliamentary hearing, the EU’s newly appointed Climate Commissioners, Wopke Hoekstra of the Netherlands and Maroš Šefčovič of Slovakia have committed to pursuing an emissions reduction target of at least 90% by 2040. 

🎯 In line with the 90-95% reduction recommendation set forth by the EU Climate Advisory Board earlier this year, their target received the endorsement of the overseeing parliamentary committee.

📈 According to the London Stock Exchange Group (LSGE), the 90% target could significantly affect the financial landscape surrounding carbon emissions. If adopted, its projected that EU carbon prices could surge "above €400 by 2040" (the carbon prices on the EU ETS currently stand at €81 per tonne).

To achieve this 90% reduction target: 

🏭 The power sector would need to be nearly net-zero, including the phasing out of coal by 2030 and significant restrictions on gas-fired power unless equipped with carbon capture technologies by 2040.

⚡A substantial shift towards renewables, generating 70-90% of electricity would be necessary

🐄 A reduced meat consumption, which would result in a decline in livestock demand by 47-58% by 2040

👀 While this commitment sets a definitive tone, the broader climate community must stay vigilant as we enter a politically volatile period with upcoming EU elections. So stay tuned! 

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