The European Union’s move to consider more flexible climate targets reflects a broader shift already underway, as highlighted in earlier research showing businesses adjusting net zero plans in response to rising energy costs.
According to EU diplomats, the European Commission is set to propose a new bloc-wide climate target to cut net greenhouse gas emissions by 90% from 1990 levels, while allowing flexibility for domestic industries and use of international carbon credits.[1] This shift mirrors recent findings from Aggreko’s surveying of CEOs across Europe, which revealed that high energy costs are prompting many businesses to reassess their decarbonisation timelines to ensure a commercially viable transition.
The company’s recent report, Rebalancing the Energy Transition, based on a survey of 400 CEOs across the UK, Germany, France, and Italy, found that 95% of large businesses have already adjusted their net zero strategies in response to energy supply and pricing pressures. These findings suggest the EU’s proposed shift reflects what is already happening on the ground in energy-intensive sectors subject to rising costs and grid issues.
“The EU’s shift toward more flexible climate targets recognises the need for practical pathways to net zero that we’re seeing across industry,” said Robert Wells, Aggreko’s Europe President. “Our research shows that while the intention to invest in the energy transition remains strong, companies are evolving their strategies to ensure operational resilience while also driving environmental progress.”
According to Aggreko’s research, while 12% of CEOs currently rank the speed of decarbonisation as their top priority, the vast majority remain committed to climate action. Approximately 80% plan to increase investment in energy transition initiatives over the next year, clearly demonstrating that businesses are still committed to sustainable practices, even as they navigate cost and competitiveness challenges.
With this in mind. Aggreko is urging businesses to look beyond timelines and focus on practical, scalable solutions that can reduce emissions while improving energy resilience. Central to this is the role of decentralised energy systems and supply chain collaboration, which Rebalancing the Energy Transition identifies as key to reducing energy costs and accelerating progress toward net zero.
“In a volatile energy market, decentralised and flexible power solutions have moved from optional to essential,” Wells added. “By working with supply chain partners to deploy renewable technologies and alternative power agreements, businesses can reduce emissions and costs simultaneously.”
Aggreko’s sustainability framework, Energising Change, supports this approach by helping sectors such as manufacturing, construction, data centres, utilities, and petrochemicals to implement decentralised energy solutions that are both commercially and environmentally sustainable.
Wells concluded: “The EU’s evolving stance is a recognition of the complex and multifaceted priorities businesses face. Our report provides a roadmap for navigating these challenges, showing that with the right strategies, it is possible to stay competitive and committed to climate goals. I would encourage all stakeholders involved in energy equipment procurement to seek it out and read it.”
To read the full report, Rebalancing the Energy Transition, click here.
