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EU Emission Goals Create Opportunities for High-Tech

Even though the European Union is still chipping away at its 2020 targets for emissions reduction and energy efficiency, that hasn't stopped the trading bloc from setting goals for 40 years out.

Among the ambitious plans on the table, the 27-nation EU is focusing on “cost-efficient ways to make the European economy more climate-friendly” and energy efficient. Its biggest hopes including cutting most of its greenhouse gas emissions by 2050, as well as lowering its oil bill through technology and renewable energy. To pull this off, the EU will need to invest an average of €270 billion (US$386 million), or 1.5 percent of its GDP, annually over the next four decades. Those are big numbers with big implications for anyone living or doing business there.

From a business perspective, for instance, companies will be accountable for meeting proposed policies measuring energy efficiency and carbon footprints, and they will have to prove they have taken sufficient steps to cut their energy use. The flip side of the coin is that EU officials expect an increase in climate-focused activities to create 1.5 million jobs by 2020. That's a huge number, considering that much of the continent will be nursing a debt-induced recession hangover; high unemployment rates are predicted to linger for the next few years.

It makes sense to think ahead. Many of these projects will require significant infrastructure investment, and there will be a learning curve before energy-use behaviors fully change. Nevertheless, there are some hurdles to consider, as Pike Research recently pointed out. EBN's Anna Young echoed many of these concerns a few months back. (See: Opportunities & Challenges As Europe Sets New Emission Goals.)

The most obvious challenge involves getting all the countries to collaborate more closely and eliminate the transport, energy, and policy silos that still can be found within EU operations. Finding innovative ways to link these silos systematically will be critical for governments, companies, citizens, and creative-thinking problem-solvers with track records for improving public-private partnerships.

In a report this month, “European Union Clean Energy Policy: Potential Implications of the EU 2050 Greenhouse Gas Targets for Smart Energy and Transportation,” Pike said that three words likely will dictate how these policies are rolled out and implemented: smart, intelligent, and integrated. The report also says:

Coupling economic growth with carbon reduction transitions is not an easy task. In fact, many other countries and regions are shying away from this task. The EU is taking a big risk, but a calculated one, and it is the birth of the smart and intelligent generation of technologies that has enabled this risk to be taken. The impact these plans will have on the smart industry in Europe is to embed them between now and 2050 into everyday life for the current 501 million inhabitants.

This seems like a gem of an opportunity for electronics and high-tech companies to get in on the ground floor testing energy solutions, whether they involve massive public structures or devices that energy-conscious consumers can use. The EU and its citizens — already quite progressive with their stand on environmental protection — are committed to staying on the bleeding edge of this. It goes to show that the world may look like it revolves around smartphone and iPad sales, but the long tail is on energy resourcefulness, at least in this part of the world.

Let me know where you see the need for supply chain or high-tech expertise, and how feasible this grand plan sounds. By the way, if you're interested in learning about some of the green-friendly projects being developed around Europe, check out these videos about Barcelona, London, and Paris.

10 comments on “EU Emission Goals Create Opportunities for High-Tech

  1. Ariella
    September 2, 2011

    I was struck by this part. That is quite a long range plan — nearly 40 years. ., “The impact these plans will have on the smart industry in Europe is to embed them between now and 2050.  So much can change in that period of time, and I imagine the technology then will be way beyond what we have today

  2. mfbertozzi
    September 2, 2011

    Well Ariella, it is a long term plan. EU launched “green” taking in account also blow from US; quite recently, VCs and US Gov invested a lot in start-ups for making low emissions, as major business. Right now, Solyndra (one of the major green high-tech in which US Gov performed huge investments) has declared financial default. Are you thinking this event could bring impacts also on EU strategy?

  3. Ariella
    September 2, 2011

    The failure of Sylndra is discussed at http://www.renewableenergyworld.com/rea/news/article/2011/09/solyndra-shuts-down-and-woe-is-us Some of the people commenting clearly regard the company with contempt.

  4. mfbertozzi
    September 2, 2011

    I see I see, also from TV channels, today collected feedbacks from reporters were quite similar. I think it is important to be fair and cool and, pragmatically, try to analyze that event in order to avoid same situations in the sector.

  5. Ariella
    September 2, 2011

    Good point. You have to understand what was done wrong in order to get it right the next time around.

  6. t.alex
    September 4, 2011

    This will drive investment in R&D in big companies to achieve the targets. What's more, i believe not just EU itself but other countries in the world will adopt the emission target as well. This is a challenge and a big opportunity.

  7. _hm
    September 4, 2011

    This will in general be applicable to other continents also. Hence, this will create huge new market for h-tech. It is wonderful news. I wish they accelerate the implementation.

     

  8. mfbertozzi
    September 5, 2011

    I agree, generally speaking it makes sense a lot. Despite that, big players as Google or Microsoft did extensive job in the segment and have started several projects as GoogleMeter or Ohm, but right now have stopped and definitely left those projects. Is it a matter of technology or investments' strategy in other markets to make profit quicker?

  9. Jennifer Baljko
    September 6, 2011

    mfbertozzi   Ariella  – 

    Thx for the links about the solar panel co. will check it. Learning from one company's failure may be a boon for others.


  10. mfbertozzi
    September 7, 2011

    Jennifer, thanks for the article, it was very interesting. It was also amazing to exchange and share with Ariella some opinions about.

    @Jennifer / @ Ariella: it is my pleasure to suggest other possible areas of opportunities and potentially, socials impacts: in line with agreed target to agree on low emissions, EU and Western in general, are increasing their investments in biomass energy. As consequence, they absolutely need lands, more lands for doing that and candidate locations are Africa & India. Biomass is a positive approach, but this way to go ahead is opening several concerns. Here is an up-to-date paper that deeply shows current scenario:

    http://pubs.iied.org/17098IIED.html

     

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