EU: The PRI welcomes the 90% net GHG emissions reduction target by 2040, but calls for more clarity on target calculation and implementation strategies, and a robust enabling environment to accelerate transition finance. 

The PRI welcomes the European Commission’s proposal to target a 90% reduction of net GHG emissions by 2040. Together with more than 150 companies, investors and organisations, the PRI calls for a target of at least 90% to decarbonise the economy and strengthen its competitiveness, innovation, and resilience to shocks and energy security. The net target should clarify how it is calculated across emission reductions, and nature-based or technological carbon removals; what part of reductions if any should take place outside of the EU; and if any other ‘flexibility’ measures are included. 

Investors stand ready to back the EU transition but need policy certainty and an enabling environment to redirect financial flows and long-term capital allocation. A robust 2040 climate target with 90% domestic GHG emission reductions, aligned with investment-ready national energy and climate plans (NECPs) and granular sectoral roadmaps for orientation, and supported with market incentives and de-risking mechanisms for implementation, will accelerate investments for a competitive, clean and fair transition. 

See the full PRI consultation response on the  EU Climate Law amendment below.

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