Future-proof electricity market needed to reach ambitious climate targets

A future-proof electricity market that would incentivise investments in renewable and low-carbon electricity production is key to reach the EU’s ambitious climate targets and guarantee security of supply. This was the key message conveyed by BusinessEurope President Fredrik Persson and Director General Markus J. Beyrer to the European Commissioner for Energy Kadri Simson in a meeting on 20 June.

While gas prices have been recently decreasing, they are not expected to come down fully to pre-Covid levels at least until 2026/2027. Persson and Beyrer warned that if the cost differential is not addressed, aside from the industrial shutdowns already observed, it will have serious consequences for the long-standing competitiveness of European companies and the EU's global strength. To reach the ambitious European climate targets and at the same time guarantee security of supply at affordable prices, EU companies must have sustainable access to energy at competitive prices.

The European Commission’s proposal on the reform of the electricity market design is a step in the right direction. Still, the proposal needs to be amended to help address the challenges experienced by industrial consumers. Read our letter to know more.

Photo © European Union, 2023