The third largest economy after the US and China is European community. The European Community is being affected by climate change more than the biggest economies who still place economy over environment. In the up coming climate talks in Scotland, Europe is planning to go big and make dramatic changes.
In an article by Steven Erlanger and Somini Sengupta of the New York Times News Service, Europe is changing policies and regulations to reduce green house emissions by 55% from 1990 levels by 2030. The grand total is to be net-zero for 2050. President Ursula von der Leyen of the European Commission put the world on notice by saying our current fossil fuel economy has reached its limit. Changes must be made and soon.
The implications are investments in clean energy to reach 2030 could top over $1.4 trillion, according to BloombergNEF. The policies and regulations will be aimed at those targets.
The first measure will affect the auto sector and by 2035 the sector needs to have zero-emissions vehicles. The switch will be from gasoline and diesel to electric and other zero emission vehicle. By 2035, vehicles in Europe will not have a tailpipe at the the back of the vehicles.
Other areas are to increase increase CO2 that can be absorbed by trees and farms or plant more trees. Energy efficiency is top of mind for all industries.
Renewal energy to increase from 32% to 40% or double what it is today.
The wealthier countries are going to help the poorer countries in Europe to make the transition with a Carbon Border Adjustment Mechanism border.
The rest of the world has to adapt because the companies in Europe will make it standard to ensure their customers supply chains meet the European standards.
Linking to dividend paying stocks, profitable companies have benefited from current policies, but change is it the offering and if the third biggest market is moving in one direction, a company which sells into the market has to show it is on the same path. How are your company investments moving towards less green house gases?
There are more questions than answers, till the next time – to raising questions.