Industrial production will record a net gain of up to 145 billion euros by 2030 owing to the energy transition, according to a new report conducted by Enel and the European House - Ambrosetti.
The energy transition will also result in up to 1.4 million jobs being created in the European Union and reductions in carbon emissions reaching 3 billion euros.
The study Just E-Volution 2030 looks at the impacts of growing electrification, digitalisation and renewable generation on industrial production, employment and health in the EU, with a particular focus on Italy, Spain and Romania.
Key study findings include:
- The energy transition playing a bigger role in helping the region to achieve its carbon emissions goals, by 40% by 2030 from 1990 levels as well as to generate 32% of energy from renewables and achieve a 32.5% improvement in energy efficiency
- Of the 145 billion euros anticipated in net benefits, 14-23 billion euros will come from Italy, 7-8 billion euros in Spain and 2-3 billion euros in Romania
- Key energy transition business cases expected to have significant impacts include energy storage, demand response, smart network management, home-to-grid, vehicle-grid integration and sharing platforms
- 67% of participants surveyed say combatting climate change and protecting the environment should be at the top of policy-makers’ agenda.
To address climate change, the report recommends:
An increase in the deployment of electric technologies by promoting the effective conversion of value chains to those technologies
Managing change in nature and expertise at the workplace, increasing employment opportunities and addressing the issue of re-skilling and up-skilling
Address the issue of energy poverty, and promote the fair redistribution of the costs associated with the energy transition.
Francesco Starace, CEO at Enel, said: “Decarbonisation represents a great opportunity to modernise the European economy, revitalise the industrial sector and ensure sustainable and lasting growth.
“With an increasingly renewable generation base, the gradual penetration of electricity in the energy system will enable us to decarbonise the historically most polluting sectors of the economy, while also creating value in new ways, offering new services to consumers, who are increasingly key players in the electricity system. It is therefore essential that the benefits of the energy transition be shared, coupling it with broad measures addressing climatic, energy, environmental, industrial and social aspects.”
Valerio De Molli, CEO at the European House - Ambrosetti, added: “If there is a project capable of developing a positive vision for the future of the European Union, it is undoubtedly the energy transition. The message delivered by European citizens is loud and clear: they are asking for concrete action to combat climate change and they want Europe to lead the way.
"The quantitative assessment of the socio-economic impacts that derive from the energy transition is a necessary condition for the definition of policy-makers’ agendas with the aim to guarantee a transition that is not ‘just a transition’ but a ‘just transition for all’. For this reason, The European House - Ambrosetti has designed a new, one-of-a-kind econometric model to measure the socio-economic impacts of the energy transition. This model uniquely combines a ‘macro’ approach with a ‘micro’ one, starting from the analysis of 3,745 products and technologies that characterise European industrial production and estimating the effects through 2030 of the energy transition on industrial production and employment in the European Union, with a particular focus on Italy, Spain and Romania.”
The report is available for download here...