70 Companies Urge EU to Boost Electrification, Not Weaken Regulations

In a strong call to action, a significant bloc of 70 major European companies and business organizations, representing approximately 800,000 employees, has urged the European Union to prioritize and accelerate the electrification of its economy. These industry leaders, including prominent names like Iberdrola, Acciona, Coca-Cola, and Google, argue that the EU risks falling behind global economic powerhouses such as China and the United States if it wavers on its commitment to electrification and considers weakening regulatory frameworks. Their joint declaration emphasizes the urgency of this transition, noting that Europe's progress in this area has been stagnant for decades while other major economies are investing heavily and seizing innovation opportunities.

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With scale and deployment in Europe effectively stalled for decades, it is urgent to do much more to keep pace with the race for innovation, while other major economies are rapidly seizing opportunities and investing massively in electrification.

The coalition has set an ambitious target of achieving a 50% electrification level by 2040, a significant leap from the EU's current 32% goal for 2030. They stress that embracing electrification is crucial for building a future-oriented industrial system that fosters resilient, circular, and digital value chains across all sectors, from transportation and buildings to manufacturing and consumer goods. This strategic shift is presented not just as an environmental imperative but as a vital economic strategy to move away from the "risky dependence on imported and volatile fossil fuels" that has historically left the EU more vulnerable than its global competitors.

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As electrostates like China become leading players in the electric economy, granting competitive advantages, and electrotechnology gains growing and unstoppable momentum, the EU must remain at the forefront.

From our vantage point, this collective voice from industry underscores a critical juncture for European policy. The companies highlight that the EU possesses the necessary technology, increasingly at competitive prices, to advance key sectors like electric mobility and heating. However, they identify several key enablers that require urgent attention: reducing the tax burden on electricity, ensuring regulatory stability to provide clear investment signals, and removing barriers to grid improvements. They also advocate for a robust carbon pricing system through the EU Emissions Trading System (ETS) and better consumer communication to foster understanding and adoption of electrification's benefits. This push for accelerated electrification is not merely about meeting targets; it's about securing Europe's future competitiveness and energy independence in a rapidly evolving global landscape.

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for too long the EU has been at the mercy of volatile, imported fossil fuels, and we remain more dependent than our global competitors, including China and the United States.