5377730933_64fd363fbd_b

Europe must spend $5 trillion to have clean energy by 2050


Because of Russia’s invasion of Ukraine this year, Europe’s need for alternative sustainable energy sources has grown even more urgent. The European Union’s primary supplier of natural gas, oil, and coal is Russia, and the war has made supplies uncertain and driven up prices.

The BNEF analysis presents two potential energy scenarios for Europe: a “Economic Transition Scenario” and a more ambitious “Net Zero Scenario.”

By 2050, Europe’s use of fossil fuels will have decreased by 28% in the Economic Transition Scenario. The biggest contributor is the decline in coal use, while the rise of electric vehicles is helping to reduce oil demand by 30% by 2050.

During the same time span, however, natural gas demand declines by only 5%. This is owing to the “limited economic alternatives” to gas for heating buildings, BNEF says. It also anticipates that any reductions in gas use will level out after 2030.

In this scenario, fossil fuels will continue to make up 60% of Europe’s energy mix by 2050, a minor decrease from 69 percent in 2022.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us