The following letter was sent to President Barroso by the Investors Group on Climate Change (IIGCC) on the 2030 framework for climate and energy.
Dear President Barroso
The Institutional Investors Group on Climate Change (IIGCC) represents over 85 European pension funds, insurance companies and asset managers, with approximately €7.5 trillion of assets under management. Our holdings include all the major industrial companies in Europe.
The EU has set out a compelling vision for the single European energy market. In order to make this vision investable, investors need a stable, reliable and cost-effective long-term energy and climate policy framework. Our key issues in relation to the upcoming 2030 framework for climate and energy are as follows:
- We support a 40% greenhouse gas emission reduction target by 2030. We believe this target is implementable and are optimistic about the transition to a low carbon economy.
- We have a strong preference for this target to be met through a stable, reliable and economically meaningful carbon price and are supportive of the introduction of a reserve mechanism in the EU Emissions Trading Scheme.
- As shareowners in energy intensive companies, we have discussed with them the competitiveness risks of the EU ETS for their European operations and they have reported that this is not an issue.
- We encourage you to continue to strengthen the regulatory framework for energy efficiency especially in the built environment.
We urge the Commission to set out an ambitious 2030 climate and energy framework and would be happy to provide you with additional data or meet with you to ensure that the full range of business interests is heard.
Donald MacDonald Chairman, IIGCC, Trustee Director of BT Pension Scheme