Progressive use of electricity emerges as the most efficient energy vector to achieve net zero ambitions, in particular, in fields such as industry, buildings and transport, as these sectors are the main causes of global greenhouse gases emissions, according to a Deloitte analysis quoted in the B20 Italy Energy & Resource Efficiency policy paper, for which Deloitte has been the knowledge partner. The policy paper was submitted by the Taskforce on Energy & Resource Efficiency within the Business20 (B20), the G20 dialogue forum with the global business community, before the COP 26 UN Climate Change Conference, which takes place between October 31 and November 12, 2021, in Glasgow, Scotland.

In order to limit the rise in global temperature to 1.5°C, the Paris Agreement goal, the share of renewable energy consumption should increase from 12.4% in 2020 to 58% in 2050 in industry, from 15.5% to 81.8% in the building sector, and from 3.5% in 2020 to 54.5% in 2050 in the transport sector.

According to the Deloitte analysis, clean and smart electrification could be a cost-effective route to decarbonize large portions of total final energy uses in the transport sector, by the electrification of the passenger vehicle fleet through electric vehicles. Buildings can rely on electrification by deploying electric heat pumps and by increasing the renovation rate incorporating smart technologies. As for industrial processes, the direct and indirect use of electricity through carbon free hydrogen and e-fuels can contribute to their decarbonization.

“World leaders need to take informed decisions on pathways that lead to the achievement of the Paris Agreement goals. Deloitte has been, for many years now, providing expertise and support to various industry stakeholders in order to better understand the challenges and opportunities that lay ahead in the journey to decarbonisation. With its potential, Romania could also play a significant role and bring an important contribution to the EU and, thus, global decarbonisation efforts. Deloitte Romania’s energy practice has delivered a series of in-depth country roadmaps to net zero by 2050, indicating that the goal can be achieved even earlier with a smart approach towards a balanced mix of policies and measures, accompanied by a solid absorption rate of green funds,” said Sorin Elisei, Director Deloitte Romania, leader of the sustainability and energy practices.

The Deloitte analysis quoted in the B20 policy paper also stresses that drastic change in the composition of the energy mix is critical, in the sense of increasing the share of renewables. In order to meet the Paris Agreement target, renewables should represent approximately 30.5% of global energy supply by 2030, growing by 142% compared to the 2020 levels. The reliance on fossil fuels should radically drop, with specific regard to coal and oil, whose share in the energy mix should decrease in the same period by 53% and 21% respectively, while the development of power infrastructure for renewable generation, transmission and distribution with adequate investments needs to accelerate.