In December 2019, the European Union launched the European Green Deal, the world's most ambitious climate plan, promising zero emissions by 2050. The plan included expectations of creating millions of green jobs and ensuring cheap renewable energy.
However, several years later, the EU is facing different realities. Although carbon emissions have been reduced by 30% compared to 2005, the cost of this achievement has been very high. Electricity in Europe is now, on average, twice as expensive as in the US, with German and British consumers facing the highest rates among developed countries. Industries are laying off workers and relocating production due to escalating energy costs.
Companies like INEOS and ExxonMobil are closing plants, and industrial output in the Eurozone dropped by 5.8% in just one year. Europe is experiencing deindustrialization, and investments in manufacturing capacities have plummeted. The situation is complicated by dependence on imported gas and the closure of domestic coal and fossil fuel power plants.
The EU’s strategy differs from that of the US, China, or India by trying to simultaneously abandon fossil fuels and switch to renewables, resulting in a shortage of affordable electricity. Energy demand has decreased partly due to reduced production, and companies are struggling to secure resources.
Rising energy prices have become the main barrier to business investment, and the political consensus in EU countries on climate policy is beginning to erode. Some political groups oppose subsidizing green energy, fearing the loss of Europe’s global competitiveness.
The current situation calls into question further economic growth and the development of Europe’s future industries. Experts emphasize the need for a more flexible and balanced energy policy to avoid further job losses and stagnation in the region under global competition.
