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www.ecn.nl
Some observations and comments on EU’s roadmap for low carbon growth in 2050
Remko Ybema
Observation: messages of hope
• A road to a low carbon economy is within reach
• A consistent picture of the portfolio of low-carbon technologies
• Substantial upfront cost, but these will be largely paid back
• Investments will spur economic growth and create jobs
• Substantial co-benefits
• Tested under different technical conditions
2 11-04-2023
It shows what is needed….
• A major increase in capital investments (270 bill. euro)
• The EU ETS will be critical to drive a wide range of technologies
• Smart financing schemes
• Public private financing mechanisms
• Additional RD&D investments (50 bill euro in 10 years)
3 11-04-2023
But…..
• Nowadays economy seems the only priority
• Conflicting stakes: some will lose…
• Inertia: not only physical inertia, also in policy processes, coordination, institutions, mindsets, behaviour….
• Price of CO2 is low
• Behavioural issues matter
• Often difficult to attract capital
•…and how to divide upfront cost?
4 11-04-2023
One of the reasons to be optimistic: investments in renewables
5 11-04-2023
[REN21, 2010]
In 2010: 243 billion dollar
But ….. how it compares with revenues of 10 largest companies ….
Rank Company Revenues($ millions)
Profits($ millions)
1 Wal-Mart Stores 408,214 14,335
2 Royal Dutch Shell 285,129 12,518
3 Exxon Mobil 284,650 19,280
4 BP 246,138 16,578
5 Toyota Motor 204,106 2,256
6 Japan Post Holdings 202,196 4,849
7 Sinopec 187,518 5,756
8 State Grid 184,496 -343
9 AXA 175,257 5,012
10 China National Petroleum 165,496 10,272
6 11-04-2023
[CNN money, 2011]
Determinants of behaviour not covered
• Needs satisfaction is leading, not energy considerations
• Risk aversion prevents many to change • Only a small correlation between awareness and
easy/symbolic green behaviour‑ Denial‑ Blame others‑ Blame the circumstances‑ Change opinion
Conclusions
• EU roadmap: messages of hope
• It shows what is needed, but partially
• Several elements are missing, including them makes the challenge larger