'Can’t pay for sustainability out of our own pockets': Industry giants urge EU to mandate green buying

Major fossil fuel and energy companies are joining the calls for the EU to force customers to buy greener alternatives. They are calling for legislation to drive up demand for products with lower carbon emissions, which are otherwise too expensive to attract investment.

Oil industry giants like Shell and BP are among more than 60 companies and industry associations who are urging the European Commission to introduce new mandates that would boost investment in greener production methods.

"We will need to focus on demand creation to achieve new investment prospects," the companies say in a letter to EU Climate Commissioner Wopke Hoekstra, the Financial Times reported.

The signatories of the letter also include Tata Steel and large energy groups such as Germany’s RWE and Sweden’s Vattenfall.

We will need to focus on demand creation to achieve new investment prospects

It comes after major players in other industries, including fashion giant H&M, also called for similar legislation. H&M CEO Daniel Ervér said in August that the fashion industry will not meet its sustainability goals unless new rules are introduced, as customers can’t be expected to change their behavior without incentives.

And it seems oil and fossil fuel companies feel the same way, arguing that the tough economic climate means both consumers and companies are currently unwilling to pay more for climate-friendly alternatives.

Their letter highlights the mandatory requirements for fuel suppliers to supply a certain proportion of sustainable fuels, and wants to see a similar framework for products made with greener production methods.

The letter says the industry is simply "no longer able to pay the (high) additional costs of sustainability out of its own pocket."