Page 8 - European Energy Innovation - winter 2019 publication
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8 Winter 2019 European Energy Innovation
INDUSTRY DECARBONISATION
The future of industry
‘Industry Decarbonisation – investing in industry of the future’
By Wilhelm Molterer (pictured), Managing Director of the European Fund for Strategic
Investments (EFSI)
The long-term vision for gases. Four industries – cement, the world’s largest investor in solar
a climate neutral society steel, plastics and ammonia – are and wind technology, and home to
by 2050 is gathering responsible for 14% of the EU’s total almost half of the world’s electric
momentum. To meet the CO2 emissions, globally they even vehicles and 99% of electric buses.
objectives of the Paris Agreement account for 20%. To achieve our Europe cannot afford to fall behind.
and to limit temperature rise climate goals, decarbonisation of
to a maximum of 1.5°C above heavy industry is key, and at the heart EUROPE NEEDS TO TAKE THE LEAD
pre-industrial levels, attention is of this green transition lays green Climate action is a global
increasingly being drawn towards financing. responsibility, so why should Europe
industry, particularly areas difficult to lead the way? From a narrow
decarbonise. These energy-intensive, NET-ZERO EMISSION FROM INDUSTRY competitiveness perspective,
or heavy, industries still constitute BY 2050 IS BECOMING POSSIBLE developing new carbon-saving
fundamental building blocks of While the overall picture of where technologies before anyone else does
our economy. However, they also the climate is heading is indeed it, will offer an opportunity to keep
emit large amounts of greenhouse alarming, recent research provide heavy industries in Europe even as
a great deal of hope, showing that the cost of CO2 steadily rises. From a
global decarbonisation of industry global perspective, the benefits go far
by 2050 is technically possible, yet beyond that. By becoming the frontier
economically challenging. Equally, and finding ways to decarbonise
achieving net-zero emission from its own energy-intensive industries,
EU heavy industry is possible but Europe will develop and demonstrate
requires significant investments and solutions that are urgently needed
radical changes in value chains and across the globe. Once we can prove
business models. Furthermore, there the feasibility of these technologies
is evidence that a fully-fledged energy at scale, industrial decarbonisation is
transition in Europe is becoming more likely to accelerate on a global
technically and economically viable. level. If Europe does not take the
Most of the necessary technologies lead, it is doubtful anyone else will. If
are available today and their costs are Europe does take its responsibility, it
declining. will be to everybody’s benefit.
But we need to act now. Firstly, A key concern for European
because the energy sector is a industry is that univocal EU
complex and rather inflexible system. decarbonisation would undermine its
Infrastructure and regulatory changes competitiveness. There is little point
take decades to implement, thus in shifting to low-carbon technologies
today’s decisions will shape our if the costs of the transition result in
energy systems for years to come. more imports of these materials from
The technical life of industrial less green sources. We must ensure a
assets can be up to half a century. “level playing field” and aim to strike
Upgrading or replacing such facilities the balance between environmental
requires planning and investments sustainability and international
to start well in advance. Secondly, competitiveness.
global competition is rising. Just look
towards China, which has become In some cases, solutions are
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