EU Taxomony: Recognising the key enabling role of electrical and industrial solutions

EU Taxomony: Recognising the key enabling role of electrical and industrial solutions

T&D Europe, alongside 16 trade associations and companies wrote an open letter to highlighting the urgent need to accelerate the adoption of a sustainable finance framework. 

In May 2018, the European Commission published its action plan on sustainable finance, which included, among other things, a proposal to create a harmonised EU classification system (EU taxonomy). We strongly support this initiative as it aims to provide greater clarity to investors on what constitutes sustainable economic activities. While we are still in the regulatory phase of this process, climate change
remains a reality and we need to accelerate our action.

We believe in the ability of European industry to lead and provide the needed technological solutions, while we simultaneously decarbonise our own activities, to tackle global warming. In this fight, electrification and electrical solutions, together with other solutions, will have a key role to play in achieving carbon neutrality. For instance, the rate of electrification in the EU will have to double to reach 60% by 2050. Industrial products and processes will also continue to drive significant energy savings, through the use of technologies such as speed drives, highly efficient contractors and industrial control and automation. In Germany alone, demand-driven automation technology could deliver additional energy savings of between 10-25 % in machines and plants.

It is therefore essential that the EU taxonomy rightly recognises the enabling role of our industry for climate change mitigation, which has been highly partial until now.