Policy & Regulation

The IEA's Energy Efficiency 2023 report calls for doubling global efficiency efforts to 4% annually for achieving net zero targets, highlighting significant regional progress, job creation potential, and the necessity for a transformative industry shift, supported by robust policies and investment.

Studies outline scenarios for a 100% renewable energy system by 2050, emphasizing electrification, solar and wind dominance, job creation, grid flexibility, energy storage importance, green hydrogen's role, and socio-economic benefits including health and employment gains.

The EU's industrial carbon management strategy aims for climate neutrality by 2050, targeting innovations in carbon capture and utilization (CCU), carbon capture and storage (CCS), and CO2 transport through a 19,000 km network. This transformative approach, fostering a carbon value chain, could generate €45-€100 billion and create 75,000-170,000 jobs by 2030, while positioning the EU as a global leader in carbon management technologies. The strategy emphasizes investment, R&D, public engagement, international cooperation, and regulatory development.

The IEA's 2023 Net Zero Roadmap update outlines steps for a 1.5°C-aligned energy transition, emphasizing rapid clean energy deployment and innovation. It sets key 2030 milestones, including tripling renewables, improving efficiency, increasing EV sales, and reducing methane emissions. Global cooperation and investment are critical.

The European Union is advancing the digitalization of its energy infrastructure through 10 key initiatives that address data interoperability, grid management, cybersecurity, energy efficiency, and consumer empowerment to support its 2030 and 2050 climate goals. These initiatives aim to create an integrated, sustainable energy system that incorporates renewable energy and encourages innovation, while grappling with standardization and fast-paced digital innovation challenges.

Europe has become a global renewable energy leader, surpassing REPowerEU targets and reducing Russian fossil fuel imports. Policy frameworks and investments have driven renewable energy growth, yet challenges like high energy costs and regulatory hurdles persist. International cooperation is essential for further advancement.

The EU's AI Act introduces a risk-based AI regulation system, banning high-risk practices and enforcing strict requirements for market placement. It includes obligations for both in-EU and foreign entities affecting EU citizens and establishes a governance framework for consistent application, promoting ethical and trustworthy AI development through detailed standards and best practice codes. Significant penalties ensure compliance, while tailored provisions support SME innovation, all impacting broad sectors, including energy, where AI-driven efficiencies require adherence to these new regulations.

The "From Farm to Fork" strategy under the European Green Deal sets ambitious targets like reducing pesticides, increasing organic farming, and halving food waste by 2030. It emphasizes environmental health and economic benefits, advocating technological innovation and stronger global partnerships for sustainable food systems.

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.