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Publication 07 Nov 2023 · Austria

European countries have been at the forefront in the drive to achieve net zero emissions

4 min read

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2023 Rank

Country

01

Germany

02

Netherlands
04United Kindom
06Finland 
10France
11Sweden 
12Austria
13Czech Republic
14Norway
17Belgium
19Slovakia
21Potugal
22Spain
23Italy
24Poland
26Hungary
30Bulgaria
33Romania
45Turkey
46Ukraine

The European Climate Law, enacted in July 2021, set legally binding emissions targets for countries within the EU. The Fit For 55 package, also from July 2021, contained measures for a 55% reduction in emissions by 2030 and was a catalyst for additional investment in both renewable power and cleaner transport. The UK has set a net zero emissions target for 2050 and has devised concrete plans to reach that milestone.

A key part of the EU’s decarbonisation strategy was using Russian gas as a bridge to reaching 50% renewable power generation by 2050. This element of the strategy was fundamentally shaken by the Russian invasion of Ukraine. The EU responded quickly with its REPowerEU initiative, which focused on four key elements. Diversifying suppliers and securing affordable supply were progressed together by effectively eliminating Russia as a fuel supplier via the approval of new LNG terminals. The other two elements were to save energy and reduce usage, which prompted renewed calls for investment in renewables.

Renewables concern

While the war in Ukraine elevated energy security to a higher priority, it has also solidified the region’s commitment to expanding renewable power and electrification. That said, although the desire to increase renewable generation is sincere, the support for projects, particularly wind energy, has not been as enthusiastic as hoped. Permitting processes are not consistent across countries and are lengthy and fraught with political pressure.

The costs of installing renewable power are high, which also erodes support. However, Europe has the advantage of a nascent manufacturing supply chain, so more investment will be forthcoming if the volume of renewable projects can be expanded. Alongside increasing renewables generation there is also the need to invest in grids and energy storage. Access to electricity grids is not universal and the ease of connectivity can vary widely.

Upgrading grids and increasing capacity is a feature of some countries’ energy transition plans and will be necessary to accommodate the fluctuations in renewable power generation. Storage is another important element of the renewable energy picture since both wind and solar power are weather dependent and less predictable than either gas or coal generation.

An upgraded road to net zero

Transportation is responsible for about one-quarter of greenhouse gas emissions and the EU and UK are, once again, well ahead of the curve in terms of adopting electrification. Much of the funding for infrastructure investment has been allocated to transportation infrastructure, in particular upgrading roads and rail lines as well as expanding rail access to replace vehicle transport.

Hopeful for hydrogen

The EU has continued to incorporate hydrogen into the policies designed to meet its net zero commitments and kicked off its hydrogen strategy in July 2020. In March 2023, the EU created its Hydrogen Bank which will hold its first pilot auction for competitive bid in autumn 2023 under the Innovation Fund. In the UK, the Scottish government set out a strategy in December 2022 which aims to utilise hydrogen in fertiliser, refinery and distillery operations.

Securing the future network

Up to now, digital infrastructure has developed on a country-specific basis. Data centres are everywhere and the transition to 5G is ongoing. Several major EU telecommunications companies signed an MoU in 2021 to work towards Open RAN. Some pilot programmes have been launched in Europe, but more progress has been made in the UK, which is an innovator in this space. The major EU firms plan to implement larger deployments by 2025, following the implementation of the security controls that are needed to make Open RAN a reality.

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