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Decarbonizing Europe to meet climate targets
Exploring how decarbonization can accelerate Europe’s ability to meet 2030 and 2050 climate targets.
Renewable energy sources are trending across Europe as a strategy to meet the impending targets of the European Green Deal (EDG) and the Paris Agreement, promoting clean energy and decreasing the global carbon footprint.
This article defines decarbonization and highlights some of the most efficient strategies for the energy transition, including adopting more renewable energy, and draws attention to the environmental legislation targeting climate change and greenhouse gas (GHG) emissions to meet 2030 and 2050 targets.
What is decarbonization?
Greenhouse gas (GHG) emissions pollute the Earth’s atmosphere, trapping thermal energy close to the surface and consequently warming up the planet. In the fight against global warming and rapid climate change impacts, reducing greenhouse gases — also referred to as “decarbonizing” — is crucial to keeping the planet’s overall temperature below 1.5°C and reaching net zero emissions and carbon neutrality.
Decarbonization is the reduction and removal of carbon dioxide and other greenhouse gases from the atmosphere.
McKinsey & CompanyOne of the most common greenhouse gases is carbon dioxide (CO2), which is primarily produced by deforestation and burning fossil fuels for transport and power plants. And with approximately 80–90% of environmental pollution from cars due to fuel consumption, air emissions, and greenhouse gases, it’s no surprise that new energy efficient technologies, such as electric vehicles, have entered the sustainability space to reduce our carbon footprint.
Strategies for decarbonization
Transitioning to cleaner and more renewable energy is vital to combat climate change, and carbon removal or carbon capture is an essential contribution to achieving net zero emissions.
To protect the planet from further harm, households and businesses alike must implement strategies to enhance decarbonization efforts.
These include:
- Improving energy efficiency by adopting renewable sources, such as electric, hydro, and wind energy, or swapping to low-carbon energy sources
- Devising a timeline and implementable program to monitor and reduce Scope 3 emissions
- Reducing commutes to work by car, and instead opting for public transport, or encouraging walking or cycle-to-work schemes
- Enhancing waste management policies to increase the reuse and recycling of materials to enhance circularity and promote clean energy use
- Encouraging employees to invest in more sustainable practices, such as turning off electrical appliances, planting trees, or buying second-hand
All of these actions can mitigate the devastating impacts of climate change by reducing overall GHG emissions.
Initiatives to decarbonize Europe
Across Europe and internationally, there are several laws and environmental policies in place to reduce and mitigate GHG emissions and meet targets for a net-zero economy.
While Europe has been at the forefront of climate change mitigation and carbon control, states in the US and countries across the Asia-Pacific region are joining the climate battle.
Read on for a summary of the policies and initiatives in Europe aiming to protect the environment, carbon emissions control, carbon capture, and climate action.
European Green Deal
The European Green Deal (EGD) is the primary policy in place for climate change mitigation and adaptation, mandating several environmental targets for EU companies to strive for in a national effort to achieve a net zero economy by 2050.
Among other schemes, the Green Deal is actively working on:
- Climate change
- Energy efficiency
- Biodiversity
- Agriculture
- Environmentally friendly transport
- Green industry
Environmental targets
Within the EGD is the goal of reducing net greenhouse gas (GHG) emissions by at least 55% by 2030, and to net zero by 2050, which 27 EU Member States have pledged to contribute to. To expedite a greener economy, the EU has several targets in place across various sectors and industries:
- 55% reduction of car emissions by 2030
- 50% reduction of van emissions by 2030
- Zero emissions from new cars being registered in 2035
- Increase renewables capacity to a minimum of 42.5% by 2030
- Improve energy efficiency by 11.7% by 2030
- Reach a benchmark of 49% of renewable energy in the buildings sector
- Achieve an annual energy consumption reduction of 1.9% in the public sector
- 310 million tons of CO2 equivalent net carbon removals by natural sinks by 2030
Carbon Border Adjustment Mechanism
Also in Europe, the Carbon Border Adjustment Mechanism (CBAM) places a price on the import of carbon-intensive products from most non-EU countries to prevent carbon leakage and ensure that all importers pay the same carbon price as domestic producers.
From 1 January 2026, the CBAM will be fully operational and applicable to EU companies importing any of these carbon-intensive goods for operations or product use:
- Cement
- Iron and steel
- Aluminium
- Fertilizers
- Electricity
- Hydrogen
The CBAM requires applicable companies to report on their emissions quarterly.
Learn more about carbon accounting and reporting in our eBook.
Corporate Sustainability Reporting Directive
The Corporate Sustainability Reporting Directive (CSRD) entered into force in 2023, mandating specific companies to report on their sustainability — of which carbon and GHG emissions is included — for enhanced data transparency.
The CSRD expands the scope of sustainability reporting to cover large and listed companies, as well as small and medium enterprises (SMEs). These companies must comply with the European Sustainability Reporting Standards (ESRS).
By adopting a double materiality approach to data reporting, companies under the CSRD must report on both their financial performance and environmental impact.
Find out more in our eBook on the CSRD and CSDDD.
The Paris Agreement
A legally binding international treaty under the United Nations Framework Convention on Climate Change (UNFCCC), the Paris Agreement concentrates on reducing climate change impacts around the world.
Currently, 195 parties — including the European Union — have pledged their allegiance to the Agreement, promising to contribute to the global effort to keep the average temperature of the planet below 2°C.
The Paris Agreement has a number of strategies in place for global collaboration, including:
- Nationally Determined Contributions (NDCs) to track and map each country’s progress in reducing GHG emissions
- Long-term low greenhouse gas emission development strategies (LT-LEDS) to prioritize a country’s long-term plans
- A framework for financial and technical support to countries that may need further assistance
The relationship between decarbonization and climate change
Increasing efforts to decarbonize Europe to achieve carbon neutrality by 2050 are further encouraged by the global demand for more renewable energy and climate change mitigation.
Read more about these trending topics below.
