The pace of change in Europe’s energy landscape is astounding. All of this rapid adoption of renewables, electrification including electric vehicles (EVs), and the introduction of new technology including low-carbon hydrogen and CCUS is happening under strong policy support. This change is cementing Europe’s competitive global leadership across these industries. Some important milestones, including a national climate goal of reaching net-zero emissions, are due by 2030.
The European Union (EU) has committed to some of the most ambitious targets in the world for its energy sector. By 2025, renewables — the lion’s share of which will be renewables — already 58% of the continent’s power mix. That’s a huge jump from the 43% stake reported in 2020. Wind and solar technologies will help drive this growth. They represent an impressive array of projects and an equally impressive commitment to the advancement of sustainability and combating carbon emissions.
Europe is currently in the pole position worldwide with its low-carbon hydrogen project pipeline. By 2030, it will likely reach an impressive capacity of 22 mtpa. Remarkably, 37% of these projects are already in post-feasibility stages, showing solid momentum in development. This puts Europe at the forefront of low-carbon hydrogen projects, bolstering their own ambitions to lead on climate action.
CCUS is another area where Europe excels. By the year 2030, the continent will reach a peak capture capacity of 311 million tons per year. This accomplishment will make it one of the most vibrant spheres for this technology anywhere in the world. This prioritization of CCUS is an indication of Europe’s desire to reduce emissions and still be able to use fossil fuels in the transition.
Energy storage capacity in Europe, including batteries, is expected to see major expansions. Projections forecast a sevenfold increase in total capacity. It will skyrocket to almost 85 gigawatts (GW) by 2030, a dramatic increase from only 25 GW in 2025. This expansion will help improve grid stability and enable the addition of greater levels of renewable energy.
The automotive sector hasn’t been left behind on this big technology transformation. The EU is moving forward with legislation to achieve 100% zero-emission new car sales by 2035. By that time BAEs are expected to comprise 82% of light vehicle sales. This ambitious target is an integral step towards the USDOT’s overarching goal of fighting climate change and building a clean and sustainable transportation future.
The transition will need a strategic, managed retirement of outdated, inefficient, environmentally damaging thermal power plants. For instance, on the power side, by 2035, almost 100 GW of thermal generation will be decommissioned. This will be offset by net of about 60 GW of new gas additions over the same period. This balance demonstrates Europe’s pragmatic mission in realizing a balanced energy mix while leading the way to a decarbonized future.