Green transition
The European energy crisis has brought a lot of attention to energy efficiency and the transition to renewable energy . Global investments in green technology have accelerated , and the International Energy Agency expects as much renewable energy capacity to be installed in the next five years as has been installed during the past 20 years .
According to partner Maria Holst Levin , who advises businesses on green transition , the slow authorisation processes and also , to some extent , the uncertainty about future regulation remain barriers to the green transition . In late 2022 , the European Union adopted a temporary emergency regulation aimed at accelerating the deployment of renewable energy projects and breaking down some of the legal barriers that have delayed the authorisation process . And additional EU regulation is expected that will support the acceleration of the green transition .
" Increased production of renewable energy has been on the agenda for a long time , but progress remains too slow given the energy crisis and the security policy issues we are facing . It is therefore positive that the European Commission has acted in response to the seriousness of the situation and taken tougher measures to hopefully speed up the expansion . Hopefully , the emergency regulation will have the desired effect ," Maria says .
Need for a sourcing strategy The expectations for 2023 are high , and the political responsibility for ensuring transition to a greener future is huge . However , the transition requires energy – and energy remains expensive . For this reason , many are already looking towards optimising energy sourcing – a necessary area if businesses want to keep up :
" Utility strategies become more widespread , and with that also strategic approaches to energy procurement . It is therefore necessary to identify strategic procurement opportunities . It is also important to be aware of the energy market movements so that you can plan a relevant energy risk management strategy to mitigate the identified risks ," Maria says .
Accelerating technological progress In addition to focusing on energy sourcing , Maria expects the coming year to be defined by even closer and broader collaboration between market actors , for example about new technologies such as Power-to-X and carbon capture storage , which are already well underway . The technologies are there and will continue to accelerate – and businesses that are not yet far in their efforts to reduce their CO2 footprints are already lagging behind , Maria believes :
" As the green agenda and the focus on ESG are being increasingly embraced by both politicians and consumers , businesses that do not begin the green transition in time may lose ground , face difficulties in accessing capital , and lose customers to competitors , including fleeing investors . The transition is not just a social responsibility , it is a competitive parameter ."
Power-to-X : Power-to-X is a technology that produces fuels , chemicals and materials from green hydrogen produced by means of electrolysis . The purpose of " Power-to-X " is to contribute to e . g . the green transition in transport and industry where electrification may be too expensive or impracticable .
Carbon Capture and Storage : Carbon Capture and Storage ( CCS ) is a technology that reduces the emission of greenhouse gases , in particular CO2 , by capturing and storing it instead of releasing it into the atmosphere . The process involves capturing CO2 from industrial and energy-producing facilities , transporting it to a storage site and then safely storing it underground , for example in old oil and gas reservoirs .
Maria Holst Levin Mob . + 45 24 86 00 01 mln @ kromannreumert . com
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