Over 100 leading European CEOs urge EU to tackle energy risk

As the Russian invasion of Ukraine enters its 12th week, more than 100 CEOs at leading European businesses including Microsoft, Unilever, H&M Group, Signify and Iberdrola have urged the EU to strengthen Europe’s energy security and resilience by accelerating the green transition. The EU will this month publish its REPowerEU energy plan, designed to make Europe independent from Russian fossil fuels well before 2030. The plan also outlines a series of measures to respond to rising energy prices in Europe and to replenish gas stocks for next winter. REPowerEU will seek to diversify gas supplies, speed up the rollout of renewable gases and replace gas in heating and power generation. This can reduce EU demand for Russian gas by two thirds before the end of the year, said the European Commission (EC). The plan will increase the EU-wide energy system’s resilience based on two pillars: diversifying gas supplies via higher LNG and pipeline imports from non-Russian suppliers, and larger volumes of biomethane and renewable hydrogen production and imports. It also envisages reducing the use of fossil fuels in homes, buildings, industry and power systems more quickly, by boosting energy efficiency, increasing renewables and electrification, and addressing infrastructure bottlenecks. In an open letter to EC President Ursula von der Leyen, ahead of the final REPowerEU publication, CEOs from across Europe have outlined their support for the EU's aim to phase out dependence on Russian gas, oil and coal as a significant step towards stabilising the present energy security and price crisis. Leaders from sectors including manufacturing, heavy industry, finance, consumer goods, retail, power generation and technology are urging the EU to see the present crisis as further reason to align with the Paris Agreement and accelerate a clean domestic energy strategy as part of the green transition. The CEOs also acknowledged the need to overhaul their own business models to ensure a 1.5°C joint trajectory and for deep private sector investment in order to support delivery of the European Green Deal. Signed by 114 businesses, including multinationals and SMEs, and 26 business networks, the letter states: “At the core of the current energy security and price crises sits an overdependence on volatile, imported fossil gas, oil and coal. It is time for all of us to take necessary steps to strengthen Europe’s energy security and resilience by accelerating the green transition. Measures taken in response to the invasion of Ukraine must prioritise structural and just solutions that can deliver on the green and digital transition, and respond to the level of emergency that we face. “This is the time to be bold and double down on delivering the Green Deal, and achieve ‘rapid, deep and immediate’ cuts to carbon emissions as demanded by the IPCC. Our collective experience shows that we can mobilise together to unlock acceleration, and as we pick up the pace of transition, further transformation will become easier and cheaper,” the CEOs add. REPowerEU is a key part of the EU’s ‘Fit for 55’ package. This is legislation that will deliver at least a 55% cut in EU greenhouse gas emissions by 2030. The CEOs’ letter reiterates business support for an ambitious and effective Fit for 55 package of legislation that can catalyse the transition from fossil fuels and increase the competitiveness of European industry. It specifically calls for increased ambition and action on the Renewable Energy, Energy Efficiency and Energy Performance of Building Directives. It also highlights that a strengthened EU Emissions Trading Scheme to deliver on the EU’s targets remains critical. Eric Rondolat, CEO of Dutch multinational Signify, formerly known as Philips Lighting, said: “Reducing energy consumption by scaling up energy efficiency in buildings and cities should be at the heart of the EU’s strategy to reduce both energy dependency from Russia and achieve its climate objectives; and as such, be one of the cornerstones of the upcoming RePowerEU Plan.” Ignacio S Galán, chairman and CEO of Iberdrola, the Spanish multinational electric utility, added: “The current context demonstrates the need to accelerate the energy transition to guarantee a sustainable, robust and fair economy. The structural solution is clear: accelerating the implementation of Fit for 55 while firmly supporting renewable energy, efficient storage and smart networks to avoid future shocks, promote a self-sufficient energy system and reduce emissions. We have the technologies, a massive social consensus and, as companies, we are ready to do our part and accompany our leaders in defining clear, stable and coherent frameworks, based on European coordinated solutions, without exceptions, to accelerate the process.”

Over 100 leading European CEOs urge EU to tackle energy risk

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