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Europe’s Environment 2025: Investment in renewables, electricity networks, energy storage facilities and interconnectors needs to be increased

Europe’s Environment 2025: Investment in renewables, electricity networks, energy storage facilities and interconnectors needs to be increased

The European Environment Agency recently launched its regular report, Europe’s Environment 2025, which presents a comprehensive analysis of the state of Europe’s environment. The report covers key topics such as climate change, air and water quality, biodiversity, sustainable use of natural resources and pollution.
It aims to provide scientifically sound and up-to-date information to support informed decision-making at European, national and regional level. The publication highlights both the challenges and opportunities associated with sustainable development and emphasises the need for integrated and effective environmental protection measures.

With regard to climate change emissions, the report notes that, following a gradual increase in policies aimed at reducing greenhouse gas emissions, the rate of annual reductions in the EU has doubled since 2005. This has led to an overshoot of the 2020 climate target.
Net greenhouse gas (GHG) emissions in the EU in 2023 fell by more than a third from 1990 levels, while EU gross domestic product (GDP) grew by more than 60%. As global GHG emissions continue to increase, European progress in climate change mitigation shows that it is possible to decouple GHG emission reductions from economic growth.

Progress in reducing GHG emissions in the EU is mainly driven by the shift to renewable energy sources, while progress in sectors such as agriculture and transport remained more limited. At the same time, CO₂ uptake from land-use activities has shown a decreasing trend in recent years.
In order to meet the target of a 55% reduction in net greenhouse gas emissions by 2030, the rate of annual reductions needs to accelerate significantly from the levels of the last 15 years. While historical trends in the energy supply sector should be maintained, a marked acceleration is needed in other sectors, especially transport, and in increasing the carbon sequestration capacity of forests and soils.

Measures currently adopted and planned, as reported by Member States, are not sufficient to ensure the achievement of the 2050 climate neutrality target. This is confirmed by the aggregated national projections, which show a significant shortfall in resources to achieve this target.

Source: EEA

Developments in the energy sector include a doubling of the share of renewables since 2005. In 2023, almost a quarter of final energy consumption in the EU came from renewable sources. The most significant progress has been in the electricity sector, where renewables account for 45% of EU electricity generation – a result that puts the Union ahead of other regions in the world.

In the heating and transport sectors, the share of renewables reached 26% and 11% respectively of total energy consumption by 2023.
Since 2005, primary energy consumption in the EU has decreased by 19% and final energy consumption by 12%. This trend is explained by increased energy efficiency, the growing share of electricity from renewable sources, the implementation of energy saving measures, structural changes in the economy and warmer winters in recent years.

A threefold annual reduction in primary energy consumption and a sixfold annual reduction in final energy consumption are needed by 2030. Whether this progress will be realised remains uncertain – it depends on national ambition and consistent implementation of policies to ensure predictability of investment and coherence of policy signals across society.

In order to meet the EU’s 42.5% renewable energy target, the annual rate of transition to renewable energy must more than double the average of the last decade. At the same time, electrification should be expanded faster in all sectors and energy efficiency improved at an even higher rate.

A threefold annual reduction in primary energy consumption and a sixfold annual reduction in final energy consumption need to be achieved by 2030. Whether this progress will be realised remains uncertain – it depends on national ambition and consistent implementation of policies to ensure predictability of investment and coherence of policy signals across society.

Source: EEA

Investment in renewables, electricity networks, energy storage facilities and interconnectors needs to be increased to ensure the adequacy and flexibility of the electricity system. In addition, energy saving and efficiency measures should be strengthened, fossil fuel subsidies phased out, innovation accelerated and the full potential of transition synergies exploited through integrated planning and cross-border cooperation.

The EU’s energy transition will not be fully complete by 2030, so efforts to decarbonise energy-intensive sectors  such as cement and steel production, as well as long-distance transport  must continue on the path to climate neutrality by 2050.

In addition, the buildings sector is likely to require additional policy attention. The transition will require EU Member States to identify and overcome existing barriers related to the sourcing of materials and components, to take advantage of local opportunities – such as those provided by district heating planning – and to address potential changes in environmental impacts. It will be critical to ensure public preparedness, increase the resilience of infrastructure to climate change and address innovation gaps.

New policies should aim to encourage users to support the ongoing transformation, improve energy and material efficiency, encourage walking, cycling and the use of public transport, and embrace the principles of the sharing economy and healthier, more circular lifestyles.

Toward the report: Europe’s environment 2025

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