Innovative financial solutions to fight energy poverty

CircularPSP, a Horizon Europe-funded project, unites eight cities to transition to a Circular Economy, addressing sustainability by investing €5.64 million in R&D. It fosters municipal innovation through AI, collaboration, a follower network, and hosts events discussing circularity challenges and solutions.

Hydrogen is emerging as a potential solution for combating climate change. But there is a need to differentiate between green hydrogen—produced renewably, essential for certain industries—and less sustainable forms like grey, black, and blue hydrogen, which have significant carbon footprints. Pink hydrogen, though less harmful, presents nuclear waste challenges.

The paper addresses the EU's transition to electric vehicles (EVs) as key in decarbonizing transport sector emissions, crucial to achieving 2040 climate targets. The EV ecosystem involves various stakeholders, including OEMs, CPOs, and DSOs, working together towards electrification. Policies like RED, AFIR, EPBD, and the Sustainable Battery Regulation support this shift, while investment in EV infrastructure is projected to significantly increase. Data sharing is emphasized as essential for ecosystem efficiency.

The EU's AI Act introduces a risk-based framework for AI, mandating requirements for high-risk systems and enforcing compliance. It addresses AI's potential in energy optimization, while emphasizing fundamental rights, safety, and a human-centric approach, with the IEA highlighting AI's role in achieving sustainability goals.

Directive (EU) 2023/1791 mandates a minimum 11.7% energy reduction by 2030, with specific targets for sectors and Member States. Emphasizing public sector efficiency, building renovations, and consumer empowerment, it sets a framework for sustainable energy use and addresses energy poverty, providing measures for enforcement and financing.

Energy audits are becoming vital for SMEs in Europe, offering detailed analysis of energy usage and efficiency, highlighting cost-saving measures. They notably influence investment decisions in energy-efficient technologies, with smaller firms and innovative companies benefitting the most. However, financial constraints remain a barrier to implementing energy-saving opportunities.

The paper discusses the critical role of energy efficiency in food production, emphasizing the need for food manufacturers to adopt energy management practices to remain competitive and sustainable. It outlines the benefits of benchmarking and KPIs, the adoption of frameworks like ISO 50001, and the utilization of advanced monitoring, control systems, and ICT for improved energy performance. It also addresses barriers to implementation and strategies for overcoming these challenges.

SMEs, at 98.9% of European businesses, collectively account for 13% of energy demand, presenting significant energy efficiency potential. Barriers include financial constraints and lack of energy management. Supportive policies and tailored programs can incentivize efficiency improvements, leveraging SMEs' key role in reaching the EU's energy goals.

The survey of European industries on energy efficiency reveals high concerns for energy costs, positive attitudes towards exceeding environmental standards, yet a notable gap in adopting recommended energy-saving measures due to factors like cost, complexity, and management decision-making.