The European Green Deal was approved in 2020 with great social consensus as an economic growth strategy and with the aim of turning Europe into the first climate-neutral continent.
However, these days we are seeing political and social movements that aim to stop climate change and sustainability policies around the world and in the European Union.
Even more moderate parties are buying some of these speeches, which is beginning to be worrying.
It is a trend that is emerging because a growing part of citizens believe that the current energy and economic crises, derived from covid, the war in Ukraine or bottlenecks in supply chains, are motivated by renewables and environmental policies. ;
but they also emerge due to the rise of a policy that puts supposed individual freedoms and economic growth before any intervention that protects health or the environment, and that takes advantage of this social perception that environmental policies entail costs and limitations to economic growth.
However, this perception does not correspond to reality.
The same thing happened with the war in Ukraine and the increase in energy prices.
Initially, some sectors attributed the rise in prices to renewables, which actually had its origin in a drastic reduction in the supply of Russian gas to the European Union.
This sharp increase in the price of gas was transferred to electricity.
In fact, “the reality” of renewables was the opposite: the rise in the price of electricity was lower in the countries with the most renewables and was more noticeable where the dependence of the electricity sector on gas production was greater.
For these reasons, the European Union and all member states decided to accelerate the energy transition, the development of renewables and electrification as the most effective means to reduce European dependence on imported gas and its economic and geopolitical risks.
What is the current situation?
In the last 10-15 years we have experienced a true technological revolution in clean energy, especially photovoltaics and wind to generate electricity and batteries.
This rapid technological development is allowing us to decarbonize electricity sooner than expected, and this supply is also safer and cheaper.
No one doubts anymore that fundamentally renewable electricity will be cheaper than the current one and, above all, with greater energy independence and without the risk of price shocks.
In fact, Spain is one of the European countries with the lowest generation prices.
In the case of batteries, manufacturers are very clear: cars will be electric due to their high efficiency in the use of energy and their lower cost of use;
just like heat pumps, which are also more expensive to install but then, given their enormous energy efficiency, they are more economical throughout their useful life.
This will lead us, in not too long, to many energy uses currently satisfied with fossil fuels will be cheaper when they are electrified.
Now, it is true that there are going to be some energy uses, the so-called difficult-to-electrify sectors that will have to use other decarbonized forms of energy, be it green hydrogen, biogas, biomass, etc.
And in these sectors, there may be a higher cost of energy, but its impact on the final products will not be excessive.
For example, it is estimated that the steel in a car manufactured without CO₂ emissions using green hydrogen could have an impact on the cost of €100 or €200 per car.
Yes, some costs will rise temporarily and only slightly, just some, but the impacts for the economy as a whole will be very positive.
If, as we have warned, there are sectors in which total decarbonization will have a cost, why do we have to make the complete energy transition throughout the economy?
Firstly, because the costs of doing nothing would be much higher due to the effects of climate change.
Second, because Europe has a practically total dependence on fossil fuels, in addition to politically unstable regions, and that generates an unaffordable strategic and economic weakness, as we are unfortunately currently experiencing with the war in Ukraine.
Third, because the energy transition is an unstoppable trend and agreed upon by all countries, which can be carried out more quickly or more slowly but without turning back (in China more renewables are installed and more electric cars are sold than in the rest of the world). world together… and India is following this example).
This new economy is going to be a technological and industrial catharsis, since it will require new clean technologies and ways of doing things, and the first to lead and gain competitiveness will clearly have global industrial leadership, which in English is called the advantage. of the first mover.
China decided to lead the renewable and electric vehicle battery industry.
The United States has reacted with the IRA (Inflation Reduction Act), the largest economic stimulus package in its history that is aimed at clean industry, to promote industrial development and local jobs.
And the European Union is directing economic aid to this clean industry, not only for environmental awareness but also for economic and employment development.
They are doing the same thing in the United Kingdom, Japan, South Korea, India, etc...
Europe must once again have technological independence and leadership in the clean energy sectors, as it must have in others such as digitalization and artificial intelligence.
Not only because of environmental awareness, but also because of a clear strategic interest in assuming industrial leadership in all global technologies, which will directly benefit citizens, with lower and safer prices, and more and better employment.
Gonzalo Sáenz de Miera
is president of the Spanish Group for Green Growth, an association made up of more than 50 companies in the country.
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