BAKU, Azerbaijan, Dec. 12
By Leman Zeynalova - Trend:
The European Union’s dependency on energy imports is expected to decline from 55 percent to 20 percent by 2050, according to an in-depth analysis by the European Commission on the continent’s long-term carbon strategy, Trend reports citing the European investment Bank (EIB).
Locally produced renewable energy is increasingly competitive with fossil fuels, said the bank.
“Renewable energy has grown out of its infancy and is entering a new phase of subsidy-free expansion. The cost of solar power has declined 75 percent from 2010- 2018, while wind’s cost has dropped 35 percent,” said the EIB.
Many challenges remain, however, according to the bank.
“Fossil fuel prices are still low and the industry is heavily subsidised, to the tune of $5.2 trillion in 2017, according to the International Monetary Fund. These fossil fuel subsidies impair the cost competitiveness of renewable energy.”
EU industry reduced its energy intensity—that’s the energy used to produce one unit of economic output—by 20% from 2005 to 2017, said EIB.
“Some industries, such as steel, cement, chemicals, glass and plastics, still need to improve their energy efficiency. Improving industrial processes through digitalization and automation and increasing the use of recycling and the re-use of materials could further boost the European Union’s energy efficiency and overall competitiveness.”
Consumers will play an active role in the energy transition by adjusting their electricity demand and supplying energy to the grid, according to EIB.
“The energy transition will gradually turn consumers into “prosumers” who are able to sell back their excess electricity. Most EU countries already have the regulatory framework in place for this to happen.”
As the EIB says, the European Union outperforms the United States and China when historic efforts to decarbonize Europe’s economy are taken into account.
“Europe started decoupling its economy from carbon emissions almost two decades ago, and our economy is now 20 percent less carbon-intensive than it was in 2000. In 2018, our carbon intensity was 20 percent lower than the United States and 70 percent lower than China.”
Investment in renewable energy has grown substantially over the last two decades and was less affected by the financial crisis than any other type of investment, said the bank.
“Green energy has created 4 million jobs in Europe so far. Another 492,000 will be created if the world commits to tackling climate change, according to an estimate by the European Commission. The energy transition will add 0.3 percent more jobs by 2050 than if nothing changes. In a more ambitious climate scenario, cutting global emissions could create 0.9 percent more new jobs.”
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