An Historic Opportunity
The saying goes that every cloud has a silver lining. If that is the case for the Covid-19 pandemic, then the silver lining is a record 43% drop in subsidies for fossil fuel consumption this year to the lowest level since 2007, when the International Energy Agency began tracking the data.
The $180 billion plunge in subsidies this year provides an “historic opportunity” to phase out fossil fuel consumption subsidies altogether, according to the IEA. Periods of low fuel prices provide an opening to impose the sort of price reforms needed for a durable reduction in subsidies because the lower cost softens the impact on prices and on inflation.
EU Energy Transition Strategy
for reducing greenhouse gas emissions in the region by at least 55% by 2030, putting it on track to reaching climate neutrality by 2050. The Commission uses 1990 levels as its baseline.
NextGenerationEU Recovery Fund
That success story in European renewables is the story of Enel Group, which has more than 46 GW of renewable managed capacity in 28 countries across five continents. That puts it among the world’s biggest producers of renewable energy. Moreover, decarbonization is at the heart of the Rome-based company’s strategy – indeed, the plan is titled “Sustainability is Value.”
The commitment of Enel X and the Enel Group to support the transition is shown by the fact that fully 50% of the company’s 28.7 billion-euro 2020-2022 Strategic Plan, which was unveiled in February, will be invested in decarbonization and electrification of consumption. Under the plan, the company will add a total of 14.1 GW of renewable capacity by the end of 2022, meaning renewables will make up 60% of installed capacity, bringing a full-scale transition to renewable energy a step closer.