EU power sector commits to ‘carbon neutrality’ by 2050
London, 19 March: European electricity companies have pledged to become carbon neutral by 2050, by reducing their greenhouse gas emissions as far as possible and offsetting any unavoidable emissions.

Members of Brussels-based trade association Eurelectric, who represent some 70% of Europe’s total power generation capacity, delivered the message to EU energy commissioner Andris Piebalgs this week, calling for EU policy-makers to create a regime conducive to attaining the objective.

Eurelectric president Lars Josefsson, who is also CEO of Swedish utility Vattenfall, had previously declared his aim for the sector to become carbon neutral by 2050. But this was the first time that 61 CEOs from major generators, including E.ON, EDF and RWE, have publicly agreed to the plan, a Eurelectric spokesman said.

In order to achieve carbon neutrality while ensuring supply security, Eurelectric said power companies “will require access to a broad range of power generation options – efficient clean fossil technologies, including carbon capture and storage, high-efficient combined heat and power, nuclear power, and renewable energy".

“A crucial factor here is also to simplify licensing procedures for new build,” it added.

The association estimates that Europe’s power sector will require about €1.8 trillion ($2.5 trillion) investment by 2030 to replace ageing plants, develop grids, meet new growing demand and deliver on environmental targets. It urged policy-makers to deliver a market-oriented framework that enables the industry to access capital markets.

Under the EU Emissions Trading Scheme, Europe’s power sector is permitted to emit 1.1 billion tonnes of carbon dioxide a year in 2013. This figure is set to decrease by 1.74% each year – under present rules, the sector would be zero emitting by 2070.