The Commission today presented a package of measures to accelerate the shift to low-carbon emissions in all sectors of the economy in Europe. The global low-carbon transition is already underway and gaining momentum, following the adoption of the first universal climate change agreement last December. Today’s proposal will help Member States prepare for the future and keep Europe competitive. It is part of the EU’s strategy for a resilient Energy Union with a forward looking climate policy.
Why does this matter to the investor? It matters, since especially the transportation industry will most likely be hit by new/increased demands for reducing carbon emissions – and this could impact investment-demands within the companies on their tangible assets – either partially with new motors/carbon reducing devices or fully with new transport assets. And for those transporters already being very environmental conscious, this could be a competition advantage. But much depends on the local interpretation in each country, and much depends on the demands per country, which is very different (see fact sheet) – and not the least how the governments foresee they will measure CO2 on cross-border activities, which much of the transportation business is about.
ESG Insight looks forward to the coming measurement instructions to the local authorities and thus the companies.