Leading businesses appeal to EU to strengthen renewables target

The Corporate Leaders Group has called on the European Union (EU) to establish a more ambitious 2030 renewable energy target.

On Wednesday 26 April, the Prince of Wales's Corporate Leaders Group on Climate Change published a report urging the EU to strengthen its proposed renewable energy target, in order to mobilise investment in increasingly cost effective clean energy sources.

The report, “21st century energy: Business reflections on renewables in Europe”, puts forward that “inconsistent, vague and unambitious EU policies" are stifling investment and slowing the transition towards a cleaner energy future.

Jill Duggan, Director of the Corporate Leaders Group, said: “Leading companies from across Europe are telling us that weak renewables targets hinder investment in cleaner energy, and lack of clarity at Member State level hampers decision-making.”

She went on to say: “What the majority of these companies want is ambitious Member State targets for renewable energy to drive their investment and purchasing decisions. Those countries with the strongest targets will be the most attractive for inward investment.”

The report recommends the EU implements more ambitious and binding targets in its new Renewable Energy Directive.

At present, the European Commission is proposing a non-binding, EU-level target of 27 per cent renewable energy by 2030. 

The majority of companies interviewed for the report think the EU should raise this target in addition to establishing better arrangements for an EU-wide energy market, and policy credibility and consistency to enable long-term decision-making.

Currently, only seven of the 28 EU Member States have targets in place beyond 2020.

The Ikea Group said that it needed "stable and ambitious policies since any uncertainty can hamper or delay corporate investments", and that the EU "can play an important part in increasing the harmonisation of the policies".

Nigel Stansfield, President for EMEA at Interface – another of the companies interviewed in the report – said: “Supporting businesses to transition to renewable energy is crucial for promoting growth and jobs in a sustainable economy.”

He added: "We need more consistent policy implementation across the Union, a framework for an integrated energy market, and stronger enforcement. There is a real opportunity here for the EU to show leadership and reassert the right and ambitious direction of travel."

The new Renewable Energy Directive is due to be agreed later this year.

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