The DWS Research Institute has released a report assessing European countries’ progress towards their respective 2030 climate-related goals, shedding light on the UK’s challenges in achieving its commitments.
Aligned with the European Climate Law, the EU aims to slash greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels, while the UK has set a more ambitious target of reducing emissions by 68% against the same baseline.
Despite leading Europe in GHG emission reductions since 1990, the UK faces a significant hurdle in ramping up its renewable energy usage beyond the power generation sector, as highlighted in the report.
While the UK ranks moderately in terms of renewables contributing to electricity production among European countries, it lags at the bottom in terms of renewables’ share in the overall energy mix, trailing behind Belgium and the Netherlands.
A study from the previous year suggested that despite increasing adoption of renewable energy, the UK may struggle to meet its net-zero targets due to challenges in sectors like buildings, aviation, and shipping, which are harder to decarbonize.
The report warns that the UK has a slim chance of achieving its energy and transportation decarbonization goals, underscoring the urgent need for bolstered policy support and increased investment.
In comparison to the five largest Western European economies, the UK ranks last in green spending, falling behind France, Germany, Spain, and Italy.
Furthermore, recent research indicates that nearly two-thirds of UK energy companies have shifted or plan to shift investments away from the UK to markets with more supportive sustainability policies, risking a potential £115 billion in investments.
The DWS research institute has also raised concerns about the climate resilience of the UK’s urban infrastructure and international supply chains.
Global Energy Sector Faces Policy Uncertainty
In a related development, a separate report from assurance and risk management firm DNV reveals that nearly two-thirds of energy professionals worldwide identify political uncertainty as the primary threat to the industry in the coming year.
Based on a survey of nearly 1,300 senior energy professionals globally, the report underscores the sector’s apprehensions regarding the upcoming series of elections and potential shifts in policies worldwide.
With elections scheduled in over sixty nations in 2024, collectively representing about half of the global population, the report notes the significance of political stability for the current energy transition.
While mature low-carbon energy systems may enhance resilience to political risks in the future, the current transition requires stability, appropriate policies, and regulatory certainty, according to the report.
Despite geopolitical turmoil, the majority of survey respondents (72%) agree that the global energy transition remains a long-term trend, continuing to accelerate.