An investor group with a combined €33 trillion ($39.1 trillion) in assets has called on the European Union to set 2030 carbon-emission reduction goals at 55%, in an effort to support low-carbon economy investments.
In a report issued Tuesday, the group said that a minimum 55% reduction is required to achieve net zero carbon emissions in 2050 and to limit global warming.
Institutional Investors Group on Climate Change also wants EU policymakers to clarify ways to achieving net zero emissions in specific sectors of the economy to guide their investment decisions as the EU implements its public-private partnership program, known as the Green Deal.
"Setting ambitious targets for reducing greenhouse gas emissions at the EU level is key to facilitating a transition to a green economy, as stipulated in the European Green Deal," Jon Johnson, CEO of the €44.2 billion PKA, Hellerup, Denmark, said Tuesday in a news release.
"Setting goals for higher emissions reductions, and providing policy frameworks and support, will encourage even more sustainable investment from the sector as a whole," Mr. Johnson said.
The report, "Ambitious EU 2030 action essential for achieving net zero emissions," also favors a less costly transition to a low carbon economy through the use of technology. A reduction in carbon emissions above 55% is possible with additional technology efforts and lifestyle changes to modes of travel and consumption and production patterns, it said.
The report also highlights the EU's need to boost its 2030 targets for energy efficiency and renewable energy to over 40% from current respective targets of 32% and 32.5%.
The European Commission is set to propose its target Wednesday.