Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Verbund is strategically engaged on various climate change policy streams with predominantly positive positions, for example strongly engaging with the renewable energy legislation and the EU’s Emissions Trading Scheme (ETS). Verbund is broadly supportive of transitioning the energy mix, but has taken some positions supporting fossil gas.
Top-line Messaging on Climate Policy: The company's top-line messaging on climate policy is very positive but has been limited in 2022-2023 compared to extensive engagement noted in 2021. In a July 2021 Vienna Online article, company CEO Michael Strugl stated support for the EU’s Fit for 55 legislative climate package, whilst calling for more synergies between the package’s policies.
Engagement with Climate-Related Regulations: Verbund has strongly supported renewable energy legislation. In a Joint Letter to EU Energy and Transport Ministers in December 2022, Verbund supported ambitious targets for Renewable Fuels of Non-Biological Origins (RFNBOs) in the transport sector within the EU Renewable Energy Directive (RED). Also, in an October 2022 Twitter post, Verbund CEO Michael Strugl advocated for improved permitting for wind energy projects. The company also stated support for the revision of the EU’s Renewable Energy Directive, and indicated that the 2030 target should be increased to “at least 40%” in a February 2021 consultation response.
The company also has strongly supported the EU ETS, and has on several occasions advocated for reforms to increase its effectiveness. In its February 2021 consultation response on the EU ETS, the company appeared to support reforms to increase the ambition of the scheme’s emission reductions, while calling for free allocations for industry to be replaced with auctioned allocations. Verbund also appeared to support the EU’s Carbon Border Adjustment Mechanism, and advocated for it to replace the current carbon leakage framework including free allocations under the EU ETS, in a February 2021 consultation response.
Positioning on Energy Transition: Verbund is broadly supportive of the decarbonization of the economy, but has also taken positions supporting the role of fossil gas. In the company’s 2021 Annual Report, published in March 2022, it supported the role of green hydrogen in decarbonizing heavy industry and transport. Verbund also advocated for the decarbonization of the transport sector in a position paper on its website, accessed in December 2022, which supported the role of electric vehicles and technologies. The company’s position on fossil gas in the energy mix appears to be mixed. On its corporate website accessed in December 2022, Verbund appeared to suggest a long-term role for fossil-gas in the energy mix is desirable without suggesting clear abatement measures. Additionally, in a March 2022 Twitter post, CEO Michael Strugl supported the diversification of the European energy mix by advocating for new fossil gas infrastructure.
Industry Association Governance: Verbund publicly disclosed a limited list of industry association memberships on its Advocacy of Interests page, however it does not comment on how the company is attempting to influence these groups, nor has it published a full audit disclosure of its industry links. The company has links to trade associations positively engaged on climate policy, including SolarPower Europe.