We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: Eurelectric appears to be highly active in its engagement with EU energy and climate change policy, and has become increasingly positive on a range of regulatory strands since 2018, including on policies such as Climate Law, Renewable Energy Directive and Energy Taxation Directive.
Top-line Messaging on Climate Policy: The association’s top-line messaging on climate policy is, on the whole, strongly positive. In a policy recommendation document published in June 2022, Eurelectric supported GHG emissions reductions in line with 1.5°C target and in July 2022 the association endorsed the EU's Green Deal and fit for 55 package. Eurelectric supports the need for government regulation to respond to climate change, former president Pat O’Doherty emphasized the need for regulation to deliver a decarbonized energy system in an interview with Power Engineering International in May 2021. The association also stated strong support for the Paris Agreement on its website, accessed in January 2023.
Engagement with Climate-Related Regulations: Eurelectric's overall engagement with climate-related regulations in the EU appears to be mainly positive. Eurelectric supported the EU Emissions Trading Scheme and, in a March 2022 press release, advocated for reforms that would increase the ambition of the policy, such as increasing the Linear Reduction Factor and strengthening the Market Stability Reserve. The association also supported the integration of the ETS systems for the buildings and transport sectors over time. In a press release in the same month, the association supported the EU Carbon Border Adjustment Mechanism (CBAM), alongside the removal of free allowances from the EU ETS, and called for the inclusion of the hydrogen sector. However, it advocated for an export rebate mechanism to be included, which may weaken the overall ambition of the policy.
The association also appears to take mixed positions on European energy efficiency policy. For example, in a March 2022 joint letter, the group supported higher targets in the Energy Performance of Building Directive. However, despite support for higher energy efficiency targets in the EU’s Energy Efficiency Directive revision, it appeared to be unsupportive of ambition in the energy savings obligations, and described the 2024 phase out of fossil fuel technologies “premature” in a December 2021 position paper.
Eurelectric appears to have strongly supported renewable energy legislation since 2020, with a few exceptions. In a January 2022 position paper, the association supported the EU Renewable Energy Directive (RED) revision, increasing the 2030 target to at least 40%. The group also called for higher heating and cooling sub-targets in the RED in a March 2022 press release. However, the entity appeared to be not supportive of a strengthening of the bioenergy sustainability criteria. Furthermore, in a November 2022 open letter, the association advocated for the inclusion of 'low-carbon' hydrogen in RED III. On transport emissions policy, Eurelectric has supported higher ambition in the both the EU’s light-duty and heavy-duty CO2 emissions targets, in a November 2021 consultation response and February 2022 policy paper. A joint letter signed by Eurelectric in October 2022 further supported a 2035 EU zero-emissions CO2 target and advocated against a loophole allowing ICE-powered vehicles to continue using e-fuels after 2035.
Positioning on Energy Transition: Eurelectric appears to actively support the transition of the energy mix in its November 2021 Fit-for-55 reaction paper, the association pushed electrification as a key lever for decarbonization in Europe. Furthermore, in June 2022 policy recommendation document, Eurelectric advocated for a phase out of fossil fuels in Europe, in response to reducing its dependency on Russian fossil fuels. In a March 2022 press release, Eurelectric secretary-general Kristian Ruby advocated for a scale up in renewable electricity to transition to heat pumps, and faster deployment of renewable projects as part of the REPowerEU announcement. In its June 2021 consultation response to the EU Hydrogen and Gas Decarbonization Package, Eurelectric appeared to support a decline in fossil gas and increase in decarbonization of the energy mix, although also stated that “cautious considerations towards the potential of hydrogen blending are necessary.” In the same month, in a letter addressed to leaders of the European Council, Eurelectric CEO Jean-Bernard Lévy advocated for a reduction in fossil fuel import, an acceleration in renewable energy deployment, and against measures to deter investment in renewable energies.
The association also advocated against measures to support fossil fuels in the EU Energy Taxation Directive revision, instead supporting the phase out of tax exemptions for the aviation and maritime fuels in a November 2021 consultation response. Eurelectric is strongly supportive of decarbonizing the transport sector, for example in a February 2022 policy document, the group supported a 2035 phase-out of internal combustion engine (ICE) vehicles in Europe, targets for zero-emission vehicles, and higher ambition in Alternative Fuels Infrastructure Regulation to boost EV infrastructure.