European Union decarbonisation efforts are as much a matter of economic and security policy as climate action, according to Jan Dusik, the European Commission's climate department director. Dusik said Russia's war in Ukraine and disruptions around the Strait of Hormuz had highlighted Europe's vulnerability to imported oil and gas.
The Commission is pursuing faster electrification and development of domestic energy sources to reduce exposure to volatile fossil-fuel markets that have driven up energy costs and threatened industrial competitiveness, Dusik said at the Bruegel think tank's annual meetings on Wednesday. "Climate policy must survive, because we want to survive in Europe," he said, noting that weakening climate commitments would ignore their links to energy security and affordability.
The EU plans to reach net-zero emissions by 2050 and cut net greenhouse-gas emissions by 90 per cent by 2040. The Commission will present a climate resilience framework next month to help Europe cope with heatwaves, floods and other climate impacts, and plans to unveil its complete post-2030 climate package by the end of 2026.
Some officials have questioned the EU's credibility on its climate targets. Pierre Wunsh, governor of the National Bank of Belgium, told the Bruegel audience that public scepticism about meeting the 2050 target undermines confidence in climate instruments. "Most people will tell you we're not going to be in net zero in 2050, and so it creates some cognitive dissonance," Wunsh said.
The Commission is adjusting implementation of the Emissions Trading System, the EU's carbon market established in 2005, to allow for flexibilities including carbon allowances and removals while pursuing its 2040 and 2050 targets. Dusik said the system was designed to add up to Europe's overall carbon budget and that prices rather than quantity would increasingly drive emissions cuts as allowances decline.
The Commission is preparing to introduce additional flexibility through carbon removals and international carbon credits, but stressed these should complement rather than replace European investment in clean technologies. Analysis showed that only around five per cent of ETS revenues have been returned to industry for decarbonisation since 2005, officials said, and Brussels wants a larger share of carbon-pricing revenues to finance the transition.
