41. The advantages and uncertainties of gas in Europe's energy transition
- Author:
- Clémence Pèlegrin
- Publication Date:
- 12-2023
- Content Type:
- Working Paper
- Institution:
- Robert Schuman Foundation (RSF)
- Abstract:
- During the high-level conference organised in Paris in September, the International Energy Agency (IEA), the European Central Bank (ECB) and the European Investment Bank (EIB) hailed the speed with which the European Union has freed itself from its energy dependence on Russia. According to the three institutions, the task now will be to consolidate and perpetuate this autonomy, which was achieved so quickly and to the surprise of many observers. The IEA also recalled the staggering amounts of annual investment needed to implement the energy transition, and the budgetary efforts required by the European Union in this area, in reference to the commitment to devote at least 30% of its 2021-2027 budget to climate action. The Covid-19 pandemic had already disrupted European discourse on the energy transition, just a few months after Ursula von der Leyen's inaugural speech on the The European Green Deal in 2019 and the advent of a just transition in Europe. Despite the health context and strong political opposition in the Member States over the place to be given to the energy transition in regard to short-term economic recovery, the European Union has maintained the course of an ambitious energy transition and strengthened its intermediate objectives for 2030, (Fit for 55 - The EU's plan for a green transition - Consilium), with a 55% reduction in greenhouse gas emissions). In February 2022, the war in Ukraine sparked a new energy crisis: faced with the risk of disruption to gas supplies, the need to simultaneously decarbonise the economy and the energy mix, once again became a political imperative for the European Union. Energy efficiency and the promotion of energy-saving policies were identified as necessary and complementary ways of securing the continent's gas supplies. At the heart of long-standing political debates in Europe, the future of gas is inevitably being shaped by a downward trend: even in the scenario of complete substitution of fossil gas by green gas, the decarbonisation scenarios in Europe all point to a reduction in the use of the latter by 2050. Structural effects, such as global warming and the resulting tendency for milder winters, and cyclical effects, such as the energy crisis and the recent rise in prices experienced by households, are already pointing to a decline in the demand for gas, as a result of efforts to economise or consumers switching from gas. However, gas continues to provide services to the European energy system, in particular to satisfy heating requirements and energy for cooking by producing electricity during peaks in demand, or in the industrial sector where its complete substitution is not yet possible. This article provides a summary of three of the main issues surrounding the future of gas in the European Union: changing energy dependency; competition between gas and other energies in the European energy mix; and the development of green gas and its political future in a context of electrification.
- Topic:
- Climate Change, European Union, Gas, Crisis Management, and Energy Transition
- Political Geography:
- Europe