Working together towards a digital, CO2-neutral Europe

The German presidency of the EU Council must now set the course for a climate-neutral Europe

The German presidency of the EU Council, which begins today, can hardly complain of a shortage of demanding tasks ahead. Over the coming weeks and months, the presidency must help achieve agreement on both the Multiannual Financial Framework and the “Next Generation EU” recovery instrument. Our ability to measure up to these challenges in the midst of an unparalleled, coronavirus-induced collapse of the economy will play a crucial role towards deciding the future of the EU. Not to mention that the Council presidency’s agenda also includes other significant issues like the modalities for Brexit. There is a lot of work to be done.

As a representative of an energy technology company that operates worldwide providing technologies and solutions for the energy transition – but also as a European citizen – I encourage government to launch a serious effort over the next few months to make Europe climate-neutral by 2050. That target date should not be a “can do” – but rather a “must do.”

The EU Commission plans to provide 750 billion euros in coronavirus-crisis assistance. Its so-called “Next Generation EU” instrument offers a good opportunity to channel investment into an expansion of sustainable energy systems. It lays out a clear path toward the goal of 2050. Focusing on sustainability means that the Member States should commit to investing a significant share of their financial resources from the “Recovery and Resilience Facility” and the “Just Transition Fund” in infrastructures for sustainable energy.

As I see it, three points will be crucial in achieving Europe’s climate targets.

First, rapidly ramping up the hydrogen economy. Here we should move boldly and resolutely. A strong hydrogen economy can become a growth program for European industry. The German government recently led the way with its National Hydrogen Strategy. The European hydrogen strategy (to be presented on July 8) will be critical to establish a better European regulatory environment for hydrogen. Hydrogen, generated CO2-free, has immense potential as both an energy source and an energy storage medium. Now we must make hydrogen cost-effective. That is why the EU Member States should provide even more support for industrial scale electrolyzer pilot projects and create the necessary infrastructure, for example by retrofitting or converting gas pipelines for use with hydrogen.

Second, having the courage to take intermediate steps. Every country has different starting conditions for an energy transition. And the speed of implementation will also vary. We should recognize that here in Europe, too. Otherwise we run the risk that countries may turn away from Europe and rely on partners in other regions of the world, like the US or China. One solution would be to promote efficient gas-fired power stations and combined heat and power (CHP) plants in those countries that are turning away from coal. Gas-fired power plants will remain a sustainable investment for the long term as well. They are fueled by natural gas today – in the future they will be able to run on “green” gases like hydrogen or synthetic methane. I am convinced that these intermediate steps are essential to achieve our ultimate climate goals.

Third, modernizing and expanding our grids. Without this, the energy transition will have no success. The Member States should take advantage of the recovery programs to modernize their grids. Since the power system will be the backbone of the European energy supply, our grid infrastructure must be more resilient, more sustainable, and better equipped to integrate renewable energy sources. Just to mention two aspects: high-voltage direct-current (HVDC) transmission can carry large amounts of electricity all the way across the continent almost without loss. There is already a broad range of products in the high-voltage segment that can replace climate-damaging sulfur hexafluoride (SF6) with climate-neutral solutions. The Commission should release the revised F-Gas Regulation at the beginning of 2021. And as part of the recovery, why not replace aging SF6-based high-voltage components, over 40 years old, with SF6-free products by 2030?

The consequences of the pandemic are devastating. We need to draw the right conclusions from this terrible experience. And we must – under the banner of digitalization and CO2 neutrality – boldly seize the opportunity to speed up the transition to a more sustainable economy.

Expectations from the German Council presidency could not run higher. But its success remains in the hands of each Member State. It is my hope that all delegates have the courage to compromise and the focus on what counts most: that we as Europeans must unite to maintain international influence and safeguard our own prosperity.