EU Can Replace Russian Gas with Green Tech by 2028 for USD890B
(MENAFN) A new report from the Oxford Sustainable Finance Group, a part of the Smith School of Enterprise and the Environment at the University of Oxford, suggests that the European Union (EU) could replace its reliance on Russian gas with green technologies by 2028. The report, titled "The Race to Replace: The Economics of Using Renewables to Free Europe from Russian Gas," outlines the cost of fully replacing Russian gas for heating and electricity with clean energy.
Currently, Russian gas accounts for approximately half of the EU's gas supplies, but the report notes that its share dropped to 12.9 percent by the end of 2022. This reduction is a result of the EU's response to Russia's war in Ukraine. The EU aims to end its reliance on Russian gas by 2028.
The report estimates that it would cost a total of euro811 billion (USD890 billion) to replace Russian gas with green technologies. This total includes planned spending of euro299 billion on clean energy as part of the European Green Deal, as well as an additional investment of euro512 billion in renewable energy and heat pumps.
The report suggests that up to 90% of the required additional investment "could be recouped over the next thirty years by eliminating the need to buy gas." However, it also notes that policy changes are necessary to enable the transition to green technologies.
The report recommends that public and private funds are crucial to achieving large-scale deployment of renewables and heat pumps. It also suggests implementing auctions for utility-scale wind and solar projects, addressing permitting challenges, and deploying rooftop solar panels at speed. Additionally, the report highlights the need for increased support for insulation and the installation of heat pumps.
Overall, the report suggests that while replacing Russian gas with green technologies will require a significant investment, it is a feasible goal. With the right policies in place and the necessary funding, the EU could become less reliant on fossil fuels and move towards a more sustainable future.
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