Dražen Jakšić (EI Hrvoje Požar) : Nous voulons aider les entreprises à réduire leur consommation d’énergie et leur empreinte carbone

The Green Deal, or Green Transition, is a new European growth strategy that will transform the Union, or so officials in Brussels believe, into a modern, resource-efficient, and competitive economy. The goal of the European Green Plan is to make Europe climate neutral by 2050, stimulate the economy with green technology, create a sustainable industry and transport, and reduce pollution. Turning climate and environmental challenges into opportunities will make the transition fair and inclusive for all.

We discussed the challenges surrounding the Green Transition with Dražen Jakšić, director of the Energy Institute Hrvoje Požar. The EU, says Jakšić, has adopted targets for reducing greenhouse gas emissions, increasing energy efficiency, and increasing the share of renewable energy sources, and Croatia is relatively successfully meeting these targets compared to other member states.

What does this specifically mean? How is this task being fulfilled?

– Croatia has significantly increased production from renewable energy sources by building wind farms and solar power plants. Significant funds from European funds and national sources have been invested in the energy renovation of buildings. Many companies have also invested in energy efficiency and reducing energy consumption. Therefore, it cannot be said that preparations for the energy transition are underway; it is already being implemented intensively.

However, it is evident that the goals of achieving climate neutrality will not be met at the current pace of change, but they must be accelerated in all segments. This premise underpins the new comprehensive package of EU legislative changes ‘Fit for 55’ which will set even more ambitious goals and instruments for the green transition.

Who do you think should be the leaders of this transition? Which industries and which companies?

– There is no industry, company, or even individual that is not touched by the green transition. Every business and human activity consumes some form of energy, and efficient consumption and clean energy production are the cornerstones of the green transition.

The industrial branches and activities that contribute the most to greenhouse gases face the greatest challenges in the energy transition. Energy-intensive industries, the construction sector, and the transport sector require significant investments to decarbonize their activities and introduce principles of sustainability and circular economy.

Are there bottlenecks in the transition process and how can they be resolved?

– The business sector is aware of the need to achieve energy savings, not only to contribute to mitigating climate change but primarily to reduce energy costs, which represent a significant share of the total cost of products and services in certain activities. Investments in energy efficiency also enhance the competitiveness of companies and reduce exposure to the variability of energy prices.

However, companies often lack internal resources, both expertise and financial, for decarbonizing their operations. Although funding sources for such projects are becoming more numerous and generous, there is an increasing shortage of experts who can help design strategies and measures for achieving savings, as well as for their implementation.

And The Energy Institute Hrvoje Požar is increasingly turning to the business sector by providing such services. In our vision, we have emphasized that we want to be a generator of change towards a climate-neutral society and help companies reduce energy consumption and carbon footprint. Many other companies, energy agencies, and civil society organizations are also involved because raising awareness and knowledge about the green transition at the societal level is essential.

How much do you think the war in Ukraine will accelerate or possibly slow down or put the European Green Plan on hold?

– This brutal aggression against Ukraine will have long-term consequences not only for European security and stability but also for global flows of energy and money. The decarbonization goals overlap with the need to reduce Europe’s dependence on Russian fossil energy sources, and in the long run, the consequences of this conflict will increase efforts in the green transition. For its implementation, in addition to financial resources, time is also needed for the realization of investments in new energy technologies and energy efficiency. Therefore, in the short term, Europe is in big trouble.

The short-term focus is on ensuring sufficient quantities of natural gas for the next heating season and substituting Russian energy sources with those from other markets, which are, logically, farther away and more expensive. At the same time, there has been an unprecedented rise in energy prices just before the outbreak of this crisis. It is clear that Europeans will be the biggest losers and will pay more for energy to meet their needs in the coming years, while other oil and natural gas exporters will profit.

More expensive energy sources unfortunately mean a reduction in the investment potential needed for the energy transition for many companies. To mitigate the price shock on the population, a significant portion of the additional cost will be transferred to state-owned energy companies, further diminishing their potential for a rapid energy transition.

How strong is the European drive for the green transition in light of new geopolitical events? It is certainly being discussed in professional circles that some countries may pursue one policy while others pursue another?

– The latest geopolitical events emphasize the importance of energy security, and in this aspect, the diversification of energy supply and increasing the level of energy self-sufficiency, which means domestic renewable sources. In this regard, there is not much dispute about the direction of the transition, but there are disputes about the possible role of natural gas and nuclear energy.

Natural gas is treated as a transitional fuel, primarily replacing coal in electricity production, which is becoming questionable with current prices and supply constraints. By including nuclear energy in the European taxonomy of sustainable technologies, we are witnessing increasing interest and considerations for reviving this low-carbon energy source that can significantly contribute to the energy transition.

However, the security aspects highlighted by this senseless war in Ukraine cloud that perspective. The perception of the safety of nuclear technology depends on both its peaceful and military applications, and any possible nuclear incident within the framework of Russian military action could halt the considered nuclear power projects again.