In order to reach a swift energy transition, Europe must find ways to reduce its dependence on China, German utilities have said, adding that Europe should be prepared to invest more to realize its green ambitions.
To cut down its reliance on China, Europe must reassess regulations and create a “raw materials bank,” said Kerstin Andreae, head of the industry association BDEW.
“A revitalization of raw materials extraction in Europe and a consistent focus on a circular economy based on recycling and reparability could also make important contributions to increasing resilience,” Andreae added.
After reviewing the Paris Climate Agreement targets and assessing the progress made thus far, countries at the UN COP28 climate summit made a pledge to triple renewable energy capacity, as recommended by the International Renewable Energy Agency.
And while China may be able to reach those goals, as the Asian nation currently leads the renewable industry, Europe’s reality seems a bit different. According to The Diplomat, at the end of 2022, Europe produced only 720GW of renewable energy, compared to China’s 1,161GW.
In addition to import reliance, the European energy market stability is also threatened by a hike in prices, and while they’re not as high as last winter – energy prices aren’t expected to slump anytime soon, experts say.
The European Commission (EC) has extended the use of tools to help member states mitigate some of the risks that they face. These instruments were first introduced in 2022. On November 20, it was decided to extend the Temporary Crisis and Transition Framework and a few other rules by six months.
Following this, there have been proposals to extend other anti-crisis measures, like gas solidarity measures, the Market Correction Mechanism, and regulations pertaining to permit-granting for renewable energy projects, into the following year. This will enable members to aid national entities if electricity prices rise above the levels observed before the energy crisis, Euronews reports.
