FRANKFURT (Reuters) – Europe could wean itself off fossil fuels and create a self-sustainable energy sector by spending around 2 trillion euros ($2.1 trillion) on solar, wind and other regenerative sources by 2040, according to a new study.
The report, led by the Potsdam Institute for Climate Impact Research, said the continent would require annual investments of 140 billion euros by 2030 and 100 billion a year in the decade thereafter to get there.
While most of the sum would be needed for onshore wind expansion, solar, hydrogen and geothermal resources would be additional pillars of a strategy that would enable Europe’s electricity needs to be powered exclusively from renewables by 2030.
It would take another decade to convert the entire energy system, including things such as heating currently powered by oil or gas, to renewables, according to the study, which was shared with Reuters.
“These figures are considerable, but it is important to remember that the European countries are estimated to have spent additional 792 billion euros in the last year just on the status quo system to protect consumers from the effects of the energy crisis introduced by the Russian invasion into Ukraine,” the study said.
Last month, European lawmakers gave their final approval to legally binding targets to expand renewable energy faster this decade, a central part of Europe’s plans to curb climate change and shift away from fossil fuels.
The law raises the EU’s renewable energy targets, requiring 42.5% of EU energy to be renewable by 2030, replacing a previous 32% target.
Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
The scientific study – commissioned by Aquila Capital, one of Europe’s largest private renewables investors – echoed industry criticism towards European regulation, asking for faster approval of projects to make sure targets were hit.
It said renewable energy supply would need to grow by 20% per year to meet expected power demand by 2030.
($1 = 0.9531 euros)
(Reporting by Christoph Steitz, Editing by Rachel More and Alex Richardson)
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.
