Europe Leads the Way in Green Energy Solutions

Key Takeaways

• The regulatory environment in Europe has encouraged research and investment in green energy solutions in the region. Many EU countries and individual companies have taken the initiative to accelerate integration of renewable and alternative energy options ahead of established deadlines.
• As the heaviest carbon emitters, energy producers will require the largest investments to reduce carbon emissions. This is driving substantial investment in the conversion to alternative energy sources
• The goal of lower carbon emissions is driving technology advancements to improve efficiency and lower costs in greener solutions. Wind turbines are a notable example, where improving economics and technical innovation are increasing demand and driving growth.
• Decarbonization is another key trend toward green solutions. Conversion of carbon-intensive energy sources to carbon-neutral sources and the increased use of biofuels are important steps toward compliance with EU regulations. Full compliance will require significant investment to upgrade the electrical grid.

The European Union (EU) has led the way in clean energy investments. As early as the 1990s, Europe established the legal framework supporting a multi-decade investment cycle to reduce fossil fuel-based power generation. Europe set binding targets for renewable power generation and a framework for greenhouse gas emission-reduction targets, ironing out a de facto market-based mechanism to price the cost of carbon emissions from the power sector. Europe accomplished all this well ahead of other regions.