1/ What does the new 🇪🇺 2030 climate target of -55% mean for industry in the EU ETS?
With regard to COP 26 and updated NDCs, what can hard-to-abate-sectors contribute to higher climate ambition in the next decade? Let's take a look at:
-steel
-chemicals
-cement
#EUGreenDeal
With regard to COP 26 and updated NDCs, what can hard-to-abate-sectors contribute to higher climate ambition in the next decade? Let's take a look at:
-steel
-chemicals
-cement
#EUGreenDeal
2/ How will the EU reach the target of -55%? The heavy lifting will most likely be done in the EU ETS:
1.) accelerated coal phase-out
2.) lower refinery output (due to e-mobility/heat pumps)
3.) the rest needs to come from heavy industry (aka the hard-to-abate sectors)
1.) accelerated coal phase-out
2.) lower refinery output (due to e-mobility/heat pumps)
3.) the rest needs to come from heavy industry (aka the hard-to-abate sectors)
3/ Is EU industry ready?
EU Industry will face a lot of reinvestment decisions during the coming decade when old assets reach the end of their lifetime. The reinvestment decisions will create long-lived path dependencies and affect 100.000s of jobs.
EU Industry will face a lot of reinvestment decisions during the coming decade when old assets reach the end of their lifetime. The reinvestment decisions will create long-lived path dependencies and affect 100.000s of jobs.
4/ Because of the long life-times of industrial assets, these reinvestment opportunities need to be used to invest in:
- key technologies compatible with climate neutrality✅
With conventional technologies there's a high risk of:
- carbon lock-in ❌
- stranded assets ❌
- key technologies compatible with climate neutrality✅
With conventional technologies there's a high risk of:
- carbon lock-in ❌
- stranded assets ❌
5/ Currently, EU industry is in a difficult situation:
- no viable long-term business case for reinvestment into conventional assets ❌
- no viable business case for investment into key low-carbon technologies either since they are still more expensive than conventional tech❌
- no viable long-term business case for reinvestment into conventional assets ❌
- no viable business case for investment into key low-carbon technologies either since they are still more expensive than conventional tech❌
6/ What can be done?
In order to move out of this dangerous situation where investments are not made/possible in the EU, we need a regulatory framework under the EU Green Deal that allows for investments into key technologies well before 2030
In order to move out of this dangerous situation where investments are not made/possible in the EU, we need a regulatory framework under the EU Green Deal that allows for investments into key technologies well before 2030
7/ This is necessary to:
- sustain production levels of EU industry ✅
- maintain resilience of integrated value chains ✅
- secure 100.000s of future-proof jobs ✅
- reach EU 2030 climate target of at least -55% ✅
- develop key technologies for export markets ✅
- sustain production levels of EU industry ✅
- maintain resilience of integrated value chains ✅
- secure 100.000s of future-proof jobs ✅
- reach EU 2030 climate target of at least -55% ✅
- develop key technologies for export markets ✅
8/ The required key technologies are at the verge of breakthrough. They can be deployed well before 2030 and will reduce CO2 emissions of those sectors by 1/3.
I'll follow up with details on them in further threads.
@RENEWIndustry @andreasgraf @gnievchenko @JMGlachant @PPchef
I'll follow up with details on them in further threads.
@RENEWIndustry @andreasgraf @gnievchenko @JMGlachant @PPchef
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