Expectations for COP27 - a BusinessEurope position paper

Key messages

To be a strong actor internationally the EU must maintain European competitive-ness and climate ambition in the context of a severe energy crisis. Making progress at home by finalising its ambitious Fit-for-55 package so that it will reach its 2030 targets while safeguarding the EU’s economic capacity will be important
In order to unlock further commitments on higher mitigation ambition, the EU should be willing to constructively engage with other parties on providing financing for measurable action, particularly by Least Developed Countries (LDCs).
COP27 must make significant progress towards closing the ambition gap between the EU and several of its trading partners. All G20 countries should agree to simi-larly ambitious 2030 targets in their NDCs, as well as credible long-term decarbon-isation strategies.
Regarding Article 6, negotiators must finalise operating rules and ensure the nec-essary transparency and reliability of the system. The fragmented nature of existing carbon pricing regimes creates increasing operational risks to companies. Over-coming this fragmentation will enable companies to partner with governments and facilitate decarbonisation at the lowest possible cost to society.