How the EU’s next NDC can strengthen energy security and industrial competitiveness
We Mean Business Coalition and CLG Europe
As a party to the Paris Agreement, the European Union is due to submit its next Nationally Determined Contribution (NDC) in 2025. This NDC will define the EU’s climate ambition for 2035 – the midpoint between the legally binding 2030 climate target and the proposed 2040 target. It comes at a crucial time as the EU explores how to enhance its competitiveness, sustainability, and prosperity in an increasingly complex global context.
Our new report, a collaboration with Corporate Leaders Group Europe (CLG Europe) which builds on the Business Call to Action for Ambitious and Investible NDCs released last year, calls for policymakers and businesses to work together to deliver a NDC that not only puts the EU on track to achieve climate neutrality by 2050, but is actionable and investible— one that aligns policy with the scale of business capabilities already in motion.
Done right, the NDC will strengthen Europe’s energy security, competitiveness, and global standing, while delivering a more resilient and prosperous future.
Now is the time for Europe to stay firmly on the path to climate neutrality. This is not just about climate: robust targets and a predictable policy environment are essential to drive private-sector investment, unlock innovation, and secure long-term competitiveness. Climate action has become a strategic necessity in a fast-changing world, as well as being a moral imperative for a safer and more resilient future.
Businesses across the continent are ready to scale clean technologies, modernize supply chains, and lead in global markets. But they need clear signals. When policy is predictable and provides a clear direction of travel and a level playing field, businesses can invest with confidence.
The European Union’s next NDC for 2035 is a test of leadership — not symbolic, but strategic. It must send a clear message: that Europe intends to compete and thrive in the low-carbon economy that climate science demands. It also matters internationally – the world will be watching, and a robust NDC will provide confidence in the EU’s commitment to achieving its climate objectives, helping to build trust with global trading partners.
Europe has the talent, capital, and technology to lead. A target to reduce greenhouse gas emissions by at least 72.5% by 2035 — in line with the EU’s 2030 and a 90% 2040 target — would provide the clarity and continuity needed to anchor investment and guide industrial transformation.