2nd "Decarbonization Pathway" from ENGIE calls for more speed in decarbonization measures

For the second year in a row, ENGIE published its "Decarbonization Pathway for Europe by 2050" at the end of 2024. In it, the company assesses the current status of decarbonization measures in Europe - and calls for more committed action.

Focus of the economy is on energy costs

Energy is once again the focus of discussion - particularly with regard to the competitiveness of the European economy. Two trend-setting analyses from the year 2024, written by Enrico Letta and Mario Draghi, underline the central role of this factor. But what conclusions should those responsible draw from this? According to ENGIE, they must now make further efforts to optimize the costs of the energy transition. One tool for this is ENGIE's pragmatic "pathway" with decarbonization measures that ensure that the European net zero target for CO₂ is achieved by 2050 - reliably and financially.

New e-energy for the energy transition

On the one hand, the energy transition in Europe is making noticeable progress. Greenhouse gas emissions were reduced by two percent annually between 2010 and 2020. On the other hand, according to ENGIE's "Net Zero Pathway", Europe still needs to significantly accelerate the turnaround: According to the experts, a reduction in emissions of four percent per year is needed to  the climate neutrality target.

The keys to a successful energy transition are much greater electrification and the activation of all conceivable decarbonization measures, such as the development of green molecules. Through the interaction of green electrons and green molecules, the energy transition can be implemented as cheaply as possible. While some solutions are already mature, others still need to be developed, refined or implemented on a large scale.

"In the current geopolitical context, Europe must, more than ever, face up to its responsibilities. To remain master of its own destiny, to preserve its sovereignty and competitiveness, it must step up the pace of energy transition. Hence, we must pursue an in-depth transformation of our entire energy system: from production to consumption, from the electron to the molecule, by way of heating and cooling, with flexibility and infrastructures playing a major role. Leveraging European scale will be crucial to this endeavor. Meeting this challenge requires the mobilization and cooperation of all players, both public and private, with whom we share today our firm convictions and solid proposals. As a committed player in the energy transition, ENGIE will fully play its part in this collective effort."

- Catherine MacGregor, CEO of ENGIE

The two biggest challenges for the energy transition

With the "Net Zero Pathway", ENGIE is modeling 15 European nations whose energy systems are strongly interconnected and represent more than 85 percent of energy consumption. Based on this analysis, ENGIE defined two dominant challenges for a successful energy transition at the end of 2024.

In return, the savings from reduced fossil fuel imports have a positive effect, both financially and through greater energy independence.

If savings and expenditure are compared, the net costs of decarbonization in Europe are calculated. These will amount to around 1.8 percent of gross domestic product (GDP) between 2025 and 2030 and are expected to decrease continuously thereafter: Between 2031 and 2040, ENGIE expects costs to amount to 1.5 percent of GDP, and between 2041 and 2050 they will only amount to one percent. These costs are entirely affordable for the European economies.

Perspective: Experts estimate the macroeconomic costs of political inaction in the face of climate change at around ten percent of GDP per degree of additional global warming.

ENGIE's "Pathway" calls for action on decarbonization measures

ENGIE's "Decarbonization Pathway" underlines the urgency of faster decarbonization measures in order to achieve the net-zero target by 2050. Despite the costs, the energy transition offers economic opportunities. ENGIE is therefore calling on politicians and businesses to work together to drive forward the transformation.