As tectonic plates shift, geopolitical tensions rise, greenhouse gas emissions increase, and temperatures continue to climb, the world faces myriad significant challenges. In this increasingly divided global landscape, where international cooperation is often strained, it is essential for the EU to lead by example, fostering productive collaboration among countries and bridging partnerships between the public and private sectors.

The EU holds a pivotal role in driving global change in climate action, exemplifying the importance of ambitious climate policies that enhance energy security, bolster business competitiveness, and stimulate economic growth across its member states. While policy sets the direction for the green transition, companies are tasked with executing it by developing and deploying innovative solutions critical to achieving climate neutrality. Therefore, strengthening collaboration between the public and private sectors is imperative for meaningful progress in climate action.

On 2 July, the EU Commission presented a proposal for the EU’s 2040 climate target and Climate Law revision, which included a 90% 2040 climate target and built-in flexibilities through limited use of international credits, domestic carbon removal credits, and cross-sector flexibility. Achieving this objective will require multistakeholder collaboration.

DI contributes to this demand for stronger collaboration by building bridges between different partners and remaining a strong societal player. The Joint Industry Declaration initiated by DI is a good example of this. It unites European business organisations from Denmark, Germany, France, Ireland, Sweden, Norway, and Finland.The declaration asserts that all seven countries’ business organizations – representing over 430,000 European companies – are united in their support for a strong climate goal for 2040.

More concretely, it proposes:

1. Advocate for integrating international carbon credits to complement EU decarbonisation efforts while ensuring investment incentives for clean technologies.
2. The EU’s credibility in international climate diplomacy is key to balancing ambition with industrial competitiveness.
3. Implement robust carbon leakage measures and structural reforms to safeguard EU industries and exports.
4. Effective implementation of existing legislation and evaluation of the Fit-for-55 package is essential for fostering investment and maintaining competitiveness.
5. Embrace a technology-neutral approach to provide equal treatment for low-carbon and renewable energy solutions, ensuring innovation and investor confidence.

These initiatives could help us get closer to meeting the EU’s climate goals, while enhancing European competitiveness and supporting energy security. And they would help create long-term stability for the businesses that need to make investments in the green transition. Achieving targets requires sustained public support and a strong industrial base; otherwise, little will be gained for the climate, economy, or social cohesion

In early July, DI held a roundtable with high-level representatives from both the public and private sectors. The purpose of the roundtable was to present the Joint Industry Declaration to the Danish Council Presidency and the EU Commission representative, thereby fostering collaboration and knowledge-sharing among diverse stakeholders involved in climate action.

The roundtable and the Joint Industry Declaration also helped initiate discussions on EU climate policies and action post-2040. As we approach 2030, it is essential to make key strategic decisions for the post-2030 era. These decisions must balance continuity with a robust framework capable of achieving climate neutrality by 2050. The post-2030 climate framework will contribute to the EU’s preparations for COP30 in Belém and its collective efforts towards the Paris Agreement. Climate policy also serves as industrial policy, with the potential to enhance the EU’s resilience, energy security, and competitiveness. The 2040 climate target and Clean Industrial Deal initiatives must assist the EU’s business community and Member States in contributing cost-efficiently to the EU’s strategic objectives.