Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Corporate Leaders Group (CLG) is strategically engaged with EU and UK climate change policy and takes strongly supportive positions on energy efficiency, renewable energy and the energy mix. CLG appears to support the EU Emissions Trading System and Carbon Border Adjustment Mechanism with some exceptions.
Top-line Messaging on Climate Policy: CLG is communicating strong support for ambitious climate policy. In a June 2024 position paper on the future of Europe’s climate agenda, the association supported the EU’s goal of reaching climate neutrality by 2050. CLG supported the implementation of the EU Fit for 55 Package in a March 2024 joint industry letter. It also supported the need for regulation to achieve a circular economy in a September 2024 briefing. CLG has consistently supported the delivery of the Paris Agreement at UN level, including by advocating for ambitious Nationally Determined Contributions to be submitted in line with the 1.5°C target, in an October 2024 paper on UK climate leadership.
Engagement with Climate-Related Policies: CLG’s engagement with climate-related regulations in the EU and UK is highly positive. The group supported the EU’s preliminary agreement on EU Emissions Trading Scheme (EU ETS) reforms in a December 2022 press release, however it seemed to only support a rapid phase-out of free emissions allowances for certain sectors. In a June 2023 public consultation on the EU’s future climate policy framework, the association supported measures that would increase the stringency of the EU ETS post-2030, including linking the EU ETS with other compliance carbon markets. In the same public consultation, CLG did not clarify if it supported the extension of the EU Carbon Border Adjustment Mechanism to all sectors identified as at risk of carbon leakage. Previously, it had expressed concerns about the EU Carbon Border Adjustment Mechanism in an October 2021 briefing paper, highlighting potential negative economic and diplomatic impacts.
CLG takes positive positions on energy efficiency and renewable energy legislation in the EU and UK. The association advocated for more ambitious energy efficiency legislation and supported the EPBD reform in a June 2024 policy briefing on the EU Green Deal. The association strongly supported energy efficiency measures to insulate the residential building stock in a joint letter to the UK Prime Minister in September 2023. It also advocated for policy to drive energy efficiency improvements in the residential stock, such as funding for energy performance certificate reforms, in a July 2024 policy briefing.
CLG has supported circular economy policies in the EU, for instance in a November 2023 paper, it supported the EU Ecodesign for Sustainable Products Regulation. In a May 2024 paper on the European economy’s competitiveness, CLG supported implementing policies that prioritize measures to reduce and reuse according to the waste hierarchy. CLG released a policy briefing in September 2024, in which it advocated for EU policymakers to increase the ambition of government regulation on circular economy policy, including by calling for an ambitious ‘Circular Economy Act’. CLG consistently advocated between 2023-24 for an EU 2040 GHG emissions reductions target of 90 to 95% compared to 1990 levels, in line with scientific recommendations, as demonstrated by a June 2023 public consultation response to the EU, a June 2024 position paper on the EU’s climate agenda, and a February 2025 press release.
Positioning on Energy Transition: CLG appears to strongly support the transition of the energy mix in the EU and UK. It advocated for the removal of fossil fuel subsidies and fully decarbonizing electricity generation in a March 2024 joint letter on the EU 2040 Climate Target. The association called for regulation to shift away from fossil fuels towards renewables-based electrification and criticized the EU Green Deal Industrial Plan for not providing adequate levels of investment into "clean" technology manufacturing, in a May 2024 policy briefing.
CLG advocated for greater investments in electricity grid infrastructure in a June 2024 paper on the EU Green Deal, while also supporting the implementation of the EU Electricity Market Design reform. In the same paper, it also supported the EU Energy Taxation Directive reform, stating that “energy taxation for fossil fuels should be higher than taxation of electricity to promote the direct electrification of processes wherever possible.”