The EU’s long-term plan is to be the world’s first climate-neutral continent by 2050.
That goal now also has a political dimension following Russia’s invasion of Ukraine and subsequent gas shutoffs. As a result, there’s an accelerated push for the EU to phase out Russian oil and gas as part of a European Commission’s RePower EU.
By 2030, Brussels wants to increase the share of renewables in the EU’s energy mix from the current plan of 40 percent to 45 percent, and double the share of wind and solar energy from the currently suggested 33 percent to 67 percent.
However, although the EU is phasing out fossil energy sources like oil and gas, it has not yet built up enough renewable energy resources to replace them.
That means that the bloc’s energy system finds itself at a “dangerous middle ground,” according to László Varró, Shell’s Vice President of Global Business Environment.
Shell believes that the rapid scale-up of renewable energy is a critical part of the energy transition. But this will not happen automatically, and will require hard work and collaboration, Varró said during an Energy Visions event in October.
The supply chains, the skilled labor and workforce, and permitting are issues which require effective collaboration between the private sector and policymakers. From our point of view, we are all in and we are very happy to continue this journey.
“You need one thing and that’s money,” Varró said, adding that there’s a strong appetite in the private sector to invest in renewable projects, such as renewable hydrogen, solar and wind energy.
But that’s not enough, according to Varró. “You need the equipment, you need the kit, and you need the people.”
Unfortunately, the wind sector is facing major supply-chain issues, labor shortages and other bottlenecks. “There is a major role for reskilling and retraining,” Varró said.
Another big challenge is permitting the scale-up. Complex and slow administrative procedures are stalling the rollout of wind and solar power in Europe, meaning that as it currently stands the EU will likely miss its climate goals and be dependent on unreliable gas supplies for longer.
“European political decision makers have to ask the question: when we face a combined energy crisis and climate crisis, what is the appropriate legal environment that helps the scale-up?” said Varró.
“The supply chains, the skilled labor and workforce, and permitting are issues which require effective collaboration between the private sector and policymakers. From our point of view, we are all in and we are very happy to continue this journey,” he concluded.
Watch the video here:
In the video above, Shell’s László Varró talks about the role of renewables in accelerating the transition to climate neutrality.
