Climate target for 2040 presented

The EU Commission has presented its new interim target on the road to planned “climate neutrality.” With the reduction target for 2030 likely to be achieved from today's perspective, the EU is thus setting the course for further climate action. Specifically, the EU's greenhouse gas emissions are to be reduced by 90% by 2040 compared to 1990 levels. In credit analysis, increasing transition risks have to be taken into account for EU issuers. In addition, global competition between decarbonized business models is once again bringing trade policy to the forefront, with further potential for conflict over CO2 taxes, levies, and tariffs.