REEF: Green Deal catalysts for rapid change
Statkraft CEO and The Roundtable for Europe’s Energy Future (REEF) affirmed support for the European Green Deal during a meeting with Executive Vice-President for the European Green Deal Frans Timmermans this week.
Representing 12 companies from transmission system operators, utilities and technology companies in a cross-sector alliance, REEF expressed its full support for a rapid acceleration of the European Green Deal. With the successful delivery of the European Green Deal and Green Recovery from COVID-19, the CEOs called on the European Commission to prepare the final step to make Europe fit for 55%.
REEF proposed three Green Deal catalysts to quadruple the speed of the energy transition. By quickly realizing these catalysts for change, the European Commission and Green Deal operators like REEF – together – can show leadership ahead of COP26 to reach climate neutrality by 2050 at the latest.
A global deal on carbon
A robust and sector-specific carbon price backed up by a carbon border adjustment mechanism (CBAM) integrates fossil fuels’ external costs in the market price. This drives out carbon from hard-to-abate sectors like transport, industry and construction sectors. The REEF CEOs proposed a global deal on carbon to be agreed at COP 26 in Glasgow.
Green ammonia and hydrogen – next step for remaining sectors
Statkraft CEO Christian Rynning-Tønnesen emphasised the crucial role of green electricity, green hydrogen and green ammonia as accelerators for the green transition especially in hard to abate sectors. Complementary to green hydrogen and electrification, green ammonia provides shipping and Europe’s agriculture sector with climate-neutral fuel and fertilisers, linking the European Green Deal to the Common Agricultural Policy. Green ammonia requires a high capacity for renewable electricity production and help stabilize electricity grids. Hybrid projects are crucial to realize sufficient amounts of offshore wind and flexibility to achieve climate neutrality.
Enabling inclusion for a just transition
REEF underlined the need to recognise inclusiveness as the road to public acceptance for the green transition, just transition for all and open-source collaboration. The EU will only reach its energy and climate targets if it interconnects to renewable energy sources in neighbouring countries to the north, south, east and west. To make Europe fit for 55%, the energy transition must be security-of-supply proof with a system value approach. This will ensure that everyone is on-board.