Renewable Energy Sources in Decarbonization: The Case of Foreign and Russian Oil and Gas Companies

The Green Deal, a cornerstone of the European Union’s climate goals, sets out to achieve a substantial 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. The EU’s decarbonization strategies revolve around three pivotal avenues. First, there is a focus on enhancing energy efficiency and decreasing the energy intensity of economies. Second, concerted efforts are made to diminish the reliance on fossil fuels, particularly within industrial sectors. Lastly, there is a deliberate push to augment the share of renewable energy sources in the final energy consumption mix. These measures collectively aim to propel the decarbonization of EU economies, establishing EU member countries as global leaders in implementing these transformative processes. This manuscript seeks to evaluate the efficacy of three primary decarbonization strategies adopted by EU economies, namely the enhancement in energy efficiency, the promotion of renewable energy consumption and the reduction in fossil fuel consumption. The objective is to discern which strategies wield a decisive influence in achieving decarbonization goals across EU countries. The analysis encompasses all 27 member states of the European Union, spanning from 1990 to 2022, with data sourced from reputable outlets, including Eurostat, Our World in Data and the Energy Institute. Research findings underscore that, in the realm of decarbonization policies, statistically significant impacts on carbon dioxide emission reduction are attributable to the strategies of improving energy efficiency and augmenting the share of renewables in energy consumption across almost all EU countries. Conversely, the strategy with the least impact, embraced by a minority of EU member states, revolves around diminishing the share of fossil fuels in primary energy consumption. This approach, while statistically less impactful, is intricately linked with transitioning the economies toward renewable energy sources, thus playing a contributory role in the broader decarbonization landscape. The uniqueness of this research lies not only in its discernment of overarching trends but also in its fervent advocacy for a comprehensive and adaptive approach to EU decarbonization policy. It underscores the enduring significance of prioritizing energy efficiency, endorsing the integration of renewable energy and acknowledging the distinctive dynamics inherent in diverse regions. The study accentuates the necessity for nuanced, region-specific strategies, challenging the conventional wisdom of a uniform approach to decarbonization. In doing so, it accentuates the critical importance of tailoring policies to the varied energy landscapes and transition strategies evident in different EU member states.

Section: Discussionsupporting

confidence: 61%

The Impact of Deep Decarbonization Policy on the Level of Greenhouse Gas Emissions in the European Union

Nagaj,

Gajdzik,

Wolniak

et al. 2024

“…On a global scale, the adoption of renewable resources addresses a major driver of global warming. The widespread implementation of clean energy technologies not only mitigates climate change but also fosters a sustainable and resilient energy landscape [68,69]. The global impact is underscored by a collective commitment to transitioning toward a low-carbon future, transcending geographical boundaries, and fostering international collaboration [70].…”

Section: Theoretical Background Of Analysismentioning

confidence: 99%

Renewable Energy Share in European Industry: Analysis and Extrapolation of Trends in EU Countries

Gajdzik,

Nagaj,

Wolniak

et al. 2024

The strategic objective of world climate policy is the decarbonization of industries, aiming to achieve “net-zero” emissions by 2050, as outlined in the European Green Deal and the Paris Agreement. This transition entails increasing the utilization of renewable energy sources (RES) in industrial energy consumption, thereby transforming economies from reliance on fossil fuels to sustainable alternatives. However, this shift poses a significant challenge for many EU countries, with varying degrees of success in adaptation. This paper investigates the process of decarbonizing industries by analyzing trends in the adoption of RES in EU countries and evaluating their progress toward climate targets. Utilizing time series analysis of production, total energy usage, and the proportion of renewables in industrial energy consumption, the study compares two groups of countries: longstanding EU members and newer additions. The aim is to forecast the trajectory of RES integration in industry and assess the feasibility of meeting the targets outlined in the European Green Deal. The findings reveal a considerable gap between the set targets and projected outcomes, with only a few countries expected to meet the EU’s 2030 goals. This is highlighted by disparities in RES shares across member states, ranging from 0.0% to 53.8% in 2022. Despite notable increases in the absolute use of renewable energy, particularly in central and eastern European nations, substantial challenges persist in aligning industrial sectors with EU decarbonization objectives.

“…Diversification of oil and gas companies takes on a fundamentally new nature. Large oil and gas companies adjust their development strategies: they reduce conventional international assets, discontinue carbon-intensive oil and gas projects, and increase the share of renewable energy sources and energy-efficient technologies in their asset portfolio [9,60]. At this time, it is difficult to fully assess the results of green diversification of oil and gas companies.…”

Section: Theoretical Aspects Of Diversification Of Oil and Gas Companiesmentioning

confidence: 99%

Strategic Priorities for Green Diversification of Oil and Gas Companies

Cherepovitsyn

Rutenko

2023

The inconsistency of arguments regarding the value of diversification strategies means that there is a lack of a unified methodological approach and a method for evaluating the impact on efficiency and competitive ability of companies. Research shows that diversification was crucially important for oil and gas companies during the economic shocks of 1998, 2009, and 2015. Nowadays, oil and gas companies apply the strategy of green diversification to solve climate change problems and adapt to energy transition trends. The goals of 14 global oil and gas companies with regard to carbon neutrality were analyzed in this study. This research expands the theoretical studies of diversification processes and outcomes in the oil and gas industry and contributes to the discussion of the feasibility of companies implementing renewable energy projects. The factors that prompt oil and gas companies to adopt green diversification were formulated, and their key strategic priorities were determined depending on the volume of proven resources. The research suggests that global shocks in the international energy market and a reduction in the significance of oil and gas resources in the overall power balance stimulate companies to diversify their asset portfolios, but such strategy does not protect against negative impacts. In addition, important issues were identified for further analysis.