Accelerating the energy transition will require “something like mobilization in times of war”. “Maybe that’s what we’re starting to see” writes BloombergNEF analysts. The EU has long wanted to switch to clean energy. But the global energy crisis due to the hostilities in Ukraine has ended the era of cheap electricity and gas and forced to raise ambitions. In the foreground is no longer climate concerns, but energy security. How much energy evolution will cost EU countries – in RTVI infographic.
Germany has already allocated more than $275 billion to deal with the risks of an energy crisis, but the final solution will be much more expensive – more than $1 trillion by 2030, appreciated BloombergNEF estimated costs. “This is probably the most daring project since the reconstruction of Germany (after the Second World War),” said Vice-Chancellor Robert Habeck. UK in 2022 product 40% of electricity from renewable sources, a record. Achieve zero carbon emissions will require €56.5 billion per year (£50 billion) until 2030; Poland will spend 70 billion euros by 2031, but EY appreciated the need to finance the energy transition of 135 billion euros by 2030 (20.6% of GDP in 2022); Portugal will attract until 2030 at least 60 billion euros of investments in the energy sector, mainly private. This represents 25% of the country’s GDP; Finland will allocate up to 850 million euros to get out of dependence on Russia. The country imports fewer Russian raw materials than many other EU countries; Switzerland can easily afford a green energy transition with expenses 2% of GDP – €13bn (£12.9bn) every year until 2050;
Not all costs will be covered by the country’s budget. Companies will pay part of it, the European Commission helps with grants.
In 2022, global investments in clean energy exceeded 1 trillion rubles, catching up with investments in fossil fuels for the first time. Most in renewables invested China (55%), USA (10%) and EU (8%).
