GENEVA

The leaders of Denmark, Finland, Portugal, Spain and Sweden on Monday urged the EU to maintain strong climate ambitions, warning that decarbonizing the economy is essential for growth, competitiveness and energy security.

In a joint letter addressed to European Council President Antonio Costa ahead of the upcoming EU summit, the five leaders reaffirmed their commitment to meeting climate targets and accelerating the transition away from fossil fuels.

"Climate ambition is a foundation for competitiveness," the leaders wrote, arguing that reducing reliance on fossil fuels will strengthen Europe’s economic resilience while lowering energy costs.

Europe's limited access to fossil resources and exposure to geopolitical pressures make decarbonization not only an environmental priority but also an economic necessity, said Swedish Prime Minister Ulf Kristersson, Danish Prime Minister Mette Frederiksen, Finnish Prime Minister Petteri Orpo, Portuguese Prime Minister Luis Montenegro, and Spanish Prime Minister Pedro Sanchez.

According to the letter, clean energy already plays a major role in economic growth. In 2023, it accounted for nearly one-third of the EU’s total GDP growth.

The leaders also emphasized the importance of the EU Emissions Trading System (ETS), the bloc’s carbon market, describing it as the cornerstone of Europe’s climate and industrial strategy.

"The ETS remains our most effective and efficient instrument for reducing emissions and guiding investment," they wrote, adding that robust carbon pricing helps mobilize capital, modernize industries and accelerate the deployment of clean technologies.

They urged EU leaders to reaffirm their commitment to climate policies during the upcoming European Council meeting and to maintain a "strong and predictable" framework for Europe's energy transition.