EU energy system transformation - Cost of Non-Europe

Study 20-10-2021

The benefits of transforming the EU's energy system

The European Union's energy system is on a path of transformation that should allow it to achieve a net-zero emissions target by 2050. However, there are many challenges ahead and achieving this target requires making profound structural changes. In this context, the present report, drafted at the request of the European Parliament's Committee on Industry, Research and Energy (ITRE), looks at what the consequences would be if the EU does not take further ambitious and united action in the transformation of its energy system. The cost of non-Europe in this area is estimated at up to 5.6 % of EU GDP in 2050, and avoiding this will require EU budgetary, regulatory and coordination action. The benefits would be many, including averted environmental costs and damage, and more sustainable and prosperous societies emerging as a result of a just and fair transition.