Decarbonization, reducing CO2 emissions through strategies like renewable energy and carbon capture, is a European priority. The EU aims for carbon neutrality by 2050, utilizing policy tools like the EU Emissions Trading System to incentivize responsible investing and a transition to green finance and sustainable investment. These ethical investments promote a green portfolio for a sustainable future.
Decarbonization is a European political and economic priority. It is the process of reducing carbon dioxide (CO2) emissions from human activities - the idea is to transition to low-carbon or carbon-free energy sources and implement sustainable practices. This is vital to mitigate climate change and can be achieved through strategies such as increasing energy efficiency, adopting renewable energy sources, implementing carbon capture and storage technologies, and promoting policies like the European Union Emissions Trading System.
Decarbonization is the process of reducing carbon dioxide (CO2) emissions resulting from human activities, and especially those related to the burning of fossil fuels such as coal, oil, and natural gas. The idea is to transition energy systems, industries, and other sectors of the economy towards low-carbon or carbon-free (when possible) alternatives to mitigate climate change. Decarbonization can be achieved through many strategies, like
Decarbonization is important to slow down global warming. The role of decarbonizing is to:
Here is what we mean when we talk about the “10 pillars of decarbonization”:
On the one hand, decarbonizing can be straightforward - we “simply” need to reduce carbon emissions. For example, an industry can adopt new technologies to emit less CO2.But there are other decarbonization methods like carbon capture and storage. When defining and advocating for decarbonization, the IPCC mentions such strategies: for example, it talks about capturing 90% or more of the CO2 emitted by power plants or reducing 50-80% of fugitive methane emissions from energy supply.
In 2010, the EU economy emitted 4.4 billion tons of CO2, and in 2023, this figure decreased to 3.4 billion tons (-22%). The overall European decarbonization is primarily observed in the "electricity, gas, steam and air conditioning supply" sector and the manufacturing sectors. In 2023, the EU reduced its emissions by 5.1% compared to the previous year. By comparison, the world is estimated to have emitted 37 billion tons of CO2 in 2023, with the EU accounting for approximately 9.2% of this total.
The sectors covered by the EU ETS are more effective in their decarbonization. In 2023, the EU ETS reduced its emissions by 15.5% compared to the previous year. In that year, the installations covered by carbon pricing emitted 1.09 billion tons of CO2. Within the sectors covered by the scheme, power production has been the most effective in its decarbonization - it is responsible for 75% of the total EU ETS emissions reduction.
The EU has set climate targets with high levels of ambition, striving to be a leader in global decarbonization efforts. With the European Green Deal, the EU aims to achieve carbon neutrality by 2050, meaning no additional carbon emissions will be released by that time. Additionally, the Fit for 55 package sets decarbonization goals to reduce carbon emissions by 55% by 2030 from 1990 levels, and by 62% for EU ETS covered sectors from 2005 levels. The communication on EU decarbonization objectives for 2040, announced in 2024, revealed the goal of reducing carbon emissions by 90% by 2040.
Europe aims to export its decarbonization ambition globally and to serve as a model for sustainable transition. It is advocating for stringent international commitments such as those made at COP, as well as the introduction of policies like carbon pricing and CBAM, which send strong signals for decarbonization worldwide. Indeed, many regions around the world like California and New Zealand, are already following the EU's example on decarbonization. Moreover, numerous countries, including Turkey and India, are currently in the process of setting carbon pricing measures for decarbonization.
Europe has implemented various decarbonization policies to reduce carbon emissions and combat climate change. Some of these policies include
The EU ETS is considered to be the most effective tool that European regulators have for decarbonization. It is a cap-and-trade system, providing installations with flexibility to reduce their carbon emissions - industries decide themselves on the operational changes that they undertake for decarbonization. It offers strong financial incentives for installations to invest in decarbonization technologies and use less emitting primary sources. The EU ETS has a wide scope, covering approximately 11,000 installations, and it continues to expand. For example, it included the maritime sector in 2024 and is expected to cover emissions from transportation and buildings in the future.
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