Climate Change:

Low Carbon Energy Saves Money in the Long Run – Study (Responding to Climate Change)

Fuel savings will pay for higher up-front costs of renewable energy, say consultants

Low carbon energy coupled with efficiency saves money compared with burning fossil fuels, especially in the longer run, a study by  Ernst and Young said on Tuesday.

EU commitment to cut carbon emissions has faltered in the aftermath of a financial crisis which has focused concerns over lower energy prices in the United States and China.

Staying the course would benefit the bloc, however, in the medium and long-run, said Tuesday’s report, “Macroeconomic impacts of the low carbon transition”.

Decarbonization scenarios analysed by the European Commission would also see an increase in Europe’s fuel bill compared to today, but to a much lower extent than under Business-As-Usual (BAU).

The Commission’s Energy Roadmap 2050 predicts that in 2050, compared to BAU the EU could save between € 518 billion and € 550 billion Macro-economic impacts of the low carbon transition annually by taking a strong decarbonization pathway. This can be achieved through a combination of energy efficiency and the promotion of a diverse portfolio of lowcarbon generation technologies across Europe, including wind, solar, hydro, geothermal, biomass and other promising options.

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