Towards a model of sustainable European cities (II)

THE INVESTMENT ON RENEWABLE ENERGY

The debates at the European level have lead to two important policy topics during the last year: Energy and Digital Single Market. Likewise, the engagement on adapting the society to alternative economic models has been one of the strong points about the Juncker Commission, by bringing to the policy agenda two relevant concepts which work as alternative working models to our society, besides the use of renewable energy: decarbonisation and circular economy.

The European Commission presented this week the Energy Security Package, a set of measures to address energy supply in Europe and improve its interdependence from external sources. The objective is to create an efficient and fully integrated internal energy market with more diversification of energy sources, suppliers and routes. It follows the strategy of the European Union to become the world leader in renewable energy with a low carbon generation.

The chapter on renewable energy sources is related to the use of renewable energy in the heating and cooling sector which represents only 18% of the European market. But governments and businesses have recognised the significant potential of increasing its share. On this sense, the Commission package presents specific actions on the EU Heating and Cooling strategy to decrease energy leakages from buildings.

To this purpose, the Commission has launched a public consultation, since November until today, for stakeholders to contribute to an evaluation of the effects of the EU support to actions aimed at promoting sustainable urban mobility and the use of alternative fuels in the EU urban areas made during the multiannual programmes 2000-2006 and 2007-2013. The revision of the strategies on energy policy is relevant to have a deeper understanding about previous investments and on how its impact can be improved.

In fact, the European market is powered 75%  by fossil fuels. In order to guarantee no disruptions on the provision of energy in the internal market, the strategy of the Commission focus on removing barriers to decarbonisation in infrastructures and industries and on adapting it to the use of renewables. At the same time, the investment for research on low-carbon technologies has been increased in order to anticipate its entrance in the market. Those represent an infinite number of opportunities to become cost-effective and competitive in comparison with fossil fuels, by creating jobs and compensating the investments towards its mainstream.

The investment on new low-carbon technologies is an alternative to reach those objectives in Europe. Research & Innovation create opportunities to develop mechanisms that can be applied to our cities, on infrastructure and on transports. Mr. Mondialisation has presented a new technology to be applied to buildings which is really interesting in terms of providing a multitude of services while heating a house: Q.rad : l’ordinateur qui chauffe votre maison. It is an example on how the services can be interlinked through the use of new technologies applied to daily tasks.

''The entire European policy framework on the transformation to a zero-carbon economy needs to be strengthened and it also needs to include appropriate education and skills development and labour market policies that facilitate the transition''.

Béla Galgóczi, Social Europe

At the same time, the Paris Agreement  at COP21 has lead to the adoption of national programmes that take into account the necessity to increase the use of renewables. Accordingly, the markets have made a few changes on the latest years with oil prices decreasing and a lost of profits on fossil fuels. For this reason, it is important to promote the divestment or the decarbonisation of the economy.

As we know, the debate comes not only from moral questions that can be made by investing in fossil fuels but also because the economic value of divestment cannot be ignore anymore.

''Companies that pursued sustainable policies, the reasoning went, benefitted by gaining valuable points with customers, avoiding embarrassing scandals and – especially in recent years – getting their pick of eager young millennial workers''.

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Businesses have understood that the investment made in more sustainable actions do also represent more public relations benefits besides profits. The investment on sustainable alternatives and decarbonisation can guarantee long-term benefits on large scale. As it has been proven, the initial investment on renewable is high but afterwards, on the long-term, the price of power generation remains low.

It is crucial to create and to promote a new mindset of the economy that must be applied to businesses, to educate the populations on the importance of taking into consideration best practices on their daily lives and to coordinate the investment on decarbonisation and renewables with other stakeholders, such as NGOs and associations. Their proximity with the populations works as an example and it can be helpful both to the authorities and to the companies, serving as a link to the implementation of new concepts such as circular economy.

For more information on the topic, watch the conference Re-Energising the Future

It took place during the COP21 in Paris, co-organised with the International Renewable Energy Agency (IRENA), the Renewable Energy Policy Network for the 21st Century (REN21), the Syndicate for Renewable Energy of France (SER) and the Government of the United Arab Emirates, the event featured high level speakers sharing their visions for a future powered by renewable energy. The conference comprises 5 sessions: Crossroads: towards a global energy transition; Governments leading the way towards a renewable world; Advancement of the renewable industry; Businesses leading the way towards a renewable energy future; Innovating for the future.