Decarbonizing the industry worldwide will need a total investment of €2.7 trillion by 2050. Of this, the EU needs 8%, or 210 billion euros. Allianz Trade, a commercial risk insurance company, has provided this data in the report “Green Industrial Revolution”.
The industrial sector is responsible for about 25% of greenhouse gas emissions. The industry can reduce emissions to almost zero by improving energy efficiency, using hydrogen and biomass, producing heat from electricity, and implementing carbon capture technology. Investments in electrification will require €105 billion. Hydrogen, innovative production processes and new technologies need almost equally €105 billion. In addition, by 2050, the total investment needs of the EU industry for carbon capture and storage will reach €330 billion. It is almost 60% more than the investment in all other decarbonization measures in the industry. Some industries, such as steel, have limited potential to reduce emissions. In such sectors, carbon capture and storage will be economically viable technology.
The 28 EU countries should invest €3 billion annually from 2020 to 2030 and €9 billion per year from 2030 to 2050. The metallurgical industry is the second most in need of investment. By 2050, it is necessary to invest €55.4 billion in it.
Governments should use the tools at their disposal to move to zero emissions. These can be subsidies or taxes on carbon emissions.
The construction sector also plays the important role in reducing emissions. Buildings account for 36% of greenhouse gas emissions. The EU plans to increase the level of energy efficiency in 2023.
Illustration photo: Marcin Jozwiak on Unsplash
European industry needs 210 billion euros of investment by 2050
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Oct 16, 2024
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