What does "Net Zero" mean, and why is it important for Europe?
The concept of Net Zero concept was conceived as a response to the exponential environmental problems associated with CO2 emissions released into our atmosphere. The underlying idea is that, since it is almost impossible to completely eliminate emissions from virtually every stage of production and transport in our economy, we must take action to reduce emissions. Europe will strive to both reduce these emissions and to implement a CO2 capture strategy that will enable us to reach a point of equilibrium, where greenhouse gases in the atmosphere do not increase over time. In other words, the expression "zero net emissions" refers to the overall balance between greenhouse gas emissions produced and greenhouse gas emissions removed from the atmosphere..
The EU aims to achieve climate neutrality by 2050i.e. an economy with zero net greenhouse gas emissions. This objective is at the heart of the European Green Deal and in line with the EU's commitment to global climate action under the Paris Agreementsigned in 2015 by 192 countries plus the European Union.
The transition to a climate-neutral society can be seen as an urgent challenge, but also as a great opportunity to create a better future for us all and for future generations.
But how is the European Union going to take action to achieve such ambitious goals? And how can you, as an individual or a company, have an impact on all this?
To find out more: Green Deal: a turning point for electric cars.
Net zero: what does it involve?
The plan consists of defining certain targets for specific years in the future, in order to create a gradual but steady decrease in greenhouse gas emissions. In fact, the EU plans to reduce emissions by 55% by 2030 (compared to 1990 levels) and to reach net zero by 2050. It's also important to mention that decarbonizing Europe can have wide-ranging economic benefits, including job creation, GDP (gross domestic product), growth and lower living costs.
All economic sectors can and must contribute to reducing greenhouse gas emissions. For example, industry must continue to modernize and evolve in order to pollute less, and at present, the best option seems to be the transition to a more electric society. The aviation and marine sectors, which are among the fastest-growing sources of greenhouse gas emissions, need to become more energy-efficient and implement the use of alternative, greener fuels.
To reduce emissions from energy-intensive industries, the EU has set up an emissions trading scheme. The EU ETS (Emissions Trading Scheme) is a market in carbon emission permits that sets the amount of emissions that power plants, industrial plants and airlines can release into the atmosphere. Permit levels are progressively reduced to cut emissions from participating industries.
Where do we need to cut emissions?
Five major sectors account for most of the European Union's greenhouse gas emissions:
- 28% from transport
- 26% from industry
- 23% of electricity
- 13% of buildings
- 13% from agriculture
In all sectors, fossil fuel combustion is the main combustion of fossil fuels is the main source of greenhouse gases (GHGs)., accounting for 80% of emissions. This points to the crucial element we need to work on and get rid of as quickly as possible: fossil fuels. fossil fuels.
Why is it important to get rid of fossil fuels?
It is now essential to understand how to act in each sector of activity in order to reduce the amount of greenhouse gases emittedemissions, while maintaining the same level of production and service provision, and being able to sustain constant growth and innovation on the European continent. European continent. The possibility of finding an alternative to fossil fuels and implementing it in our society could be the solution to many of the environmental problems we face today, and could also create a more sustainable, efficient and equitable economy.
How will the EU plan to achieve Net Zero?
The EU can support and implement the transition by investing in realistic technological solutions, empowering citizens and harmonizing actions in key areas such as industrial policy, financing and research, while ensuring social equity for a just transition.
Based on this principle, the EU has defined a different strategy to achieve this objective:
Power: transition and its crucial role
Given that wind and solar power technologies are already available and can be developed in both the private and public sectors, electricity would probably be the fastest sector to decarbonize. It's important to bear in mind that electricity demand would double, as other sectors switch to green electricity and hydrogen, requiring rapid scaling up and improvement of renewable generation and storage capacity. Being more "centralized" than other sectors, it is also easier for states and governments to implement an effective power generation strategy. The year 2040 is seen as the possible year for achieving carbon neutrality for electricity generation..
What does the future hold for transport?
This sector is crucial to Net Zero" objectiveas it is the industry with the greatest impact on greenhouse gas emissions, accounting for more than 28% of all emissions. The electric vehicles are widely seen as the best option for solving the problem. Indeed, once the majority of vehicles are electric, emissions will fall rapidly. Although the solution seems easier than in the electricity sector, it will take around 10 years to create the appropriate supply chain for vehicles and charging stations. This sector will achieve carbon neutrality by around 2045. or so.
Buildings: how is the housing sector evolving?
Most of the technologies needed to decarbonization of the building sector are already available. However, renovation work throughout the European Union is massive, and could take much longer than in other sectors. The main changes to be implemented are the use of 100% renewable energies for domestic needs, the the reduction of gas use by at least 60%, and the and the implementation of better thermal insulation to consume less energy. The building sector should reach net zero by the end of the 2040s..
Industry: what about the industrial sector?
This is the most complex and costly sector to decarbonize. Indeed, the industry would need certain technologies that are still under development. As the production of goods and materials of all kinds is fundamental to our society and economy, it is very complex to reach a sustainable point for each industrial sector.
What's more, the distinctive nature of the industry makes it even more complex and difficult to improve. As a result, it has been estimated that it will reach net zero by 2050. Even then, industry will still produce large quantities of greenhouse gases, but hopefully in a more controlled and manageable way than today.
Agriculture: what role does food production play?
More efficient farming practices could reduce agricultural emissions. But this is by far the most difficult sector to reduce, as more than half of agricultural emissions come from raising animals for food, and cannot be reduced without significant changes in meat consumption or technological breakthroughs. As with industry, our cost-optimal pathway requires offsetting agricultural emissions with negative emissions in other sectors, and increasing natural natural carbon sinks. Different and interesting solutions have been developed in recent years, but scaling them up requires a joint effort that is almost impossible to predict. What is certain is that red meat consumption is set to decline over the next decade, with a growing trend towards white meat and plant-based alternatives.
In terms of CO2 absorption, there are also 2 other main options implemented by the EU:
Land use, land-use change and forestry (LULUCF)
Land use, land-use change and forestry accounts for the CO2 flows between the various terrestrial reservoirs (biomass, soils, etc.) and the atmosphere that take place on the managed surfaces of a territory. It can thus be a net source or sink of CO2.
Carbon capture and sequestration technologies
Also known as CSCis defined as the process of the process of capturing and storing carbon dioxide (CO2) before it is released into the atmosphere. This technology can capture up to 90% of the CO2 released by the combustion of fossil fuels to generate electricity generation and industrial industrial processes.
The impact of zero-emission policies on electric vehicles
As we explained earlier, the transportation transportation sector will play a crucial role in achieving the objectives of the zero-emissions program. As the transition to a green, electricity-based society will be one of the EU's main objectives over the next few decades, it is vital to understand the importance of EVs (electric vehicles) in the society of the future.
With 6.5 million electric cars sold by 2021it's clear that the electrification of the transport sector is gathering pace, and that it's only a matter of time before the majority of passenger vehicles are electric. This has various implications for the electric vehicle sector, for example:
- the reduction in the price of electric cars over time, thanks to the development of more efficient and cheaper technologies, the expansion of the supply chain and the phenomenon of economies of scale.
- increasing the number of recharging points in European cities, making EV (electric vehicle) ownership easier and more convenient.
- the possibility of a battery crisis in the near future, with demand outstripping supply for raw materials and production.
- the reduction of premiums and incentives granted to EU citizens for thepurchase of an electric vehicledue to their expansion and generalization. Check which bonuses are available to you at the moment.
- a ban on the sale of new internal combustion engines in the very near future (2035 for the EU as a wholebut even earlier for some member states).
- rising gasoline and diesel prices and an inverse decrease in electricity costs.
Impact on consumers
When a large-scale, impactful transformation such as the energy transition and the creation of a more sustainable society is implemented, it's obvious that every individual will be affected in different ways and to different degrees. Let's look at a few examples of what could change in consumers' lives in the future:
- rising gas, diesel and petrol prices will have an impact on our wallets.
- the widespread adoption of electrical production and consumption will make electrical products and services more practical.
- the introduction of and incentives for electric vehiclesprivate renewable energies and housing efficiency will give you the opportunity to save money.
- By improving air quality and generally reducing pollution, Net Zero actions will obviously improve citizens' general quality of life.
- new possibilities and new workplaces will be created and offered in the future.
For companies
A change in our business models is crucial if we are to achieve the Net Zero objectives objectives on time. That's why businesses will play an important role in this transformation, and will probably be further guided by governments and international organizations to create change that impacts the whole planet. What is most likely to happen in the future?
- the electrification of various industries will make it more practical to switch to electric technologies.
- the ban on internal combustion engines will make electric fleets more practical for businesses.
- the general trend towards sustainability and the electricity transition will make your business more attractive to the customers concerned if you opt for greener solutions.
- Sustainability is also synonymous with efficiency, which could lead to significant savings of resources and money.
In conclusion
By pursuing decarbonization, the EU could effectively become energy independent. Between 2020 and 2050, demand for oil, gas and coal would fall by 80%..
Although the European Union is no longer dependent on imports of fossil fuels, it could develop new dependencies on imports of technologies essential to a zero-emissions economy. Today, for example solar panels are mainly imported into the EU, and certain essential raw materials, such as cobalt for batteries or iridium for electrolyzers, have a limited supplier base.
The switch to zero-emission technologies could also influence competitive dynamics and shift production locations. Adapting to change could threaten certain parts of the EU economy, while creating new opportunities.
This evolution will create enormous opportunities for citizens and businesses, but it could also generate stress and problems for those who don't adapt in time. Given the increase in demand and the possible future shortage of certain raw materials and elements crucial to the production of electrical goods, acting in advance could be a wise decision and considerably simplify our lives in the coming years.
