Abstract
Europe is currently facing a number of issues related to energy: climate change and decarbonisation; slow improvements in energy efficiency and the challenges posed by a higher share of renewable energy. The European Union is trying to address these challenges through various policies aimed at achieving full EU decarbonisation by 2050. Renewable energy contributes to the reduction of greenhouse gas emissions; and therefore, investments in renewable energy generation are seen as a tool to decarbonise the EU. However, this puts strong pressure on countries that rely on fossil fuels to switch to cleaner energy sources. This paper examines the business characteristics of three EU energy companies from the former Eastern Bloc: their production mix, their past efforts and their future plans in terms of investment in renewable energy sources. The question is how they can achieve the EU energy policy targets. The results show that the production mix of energy companies plays an important role in their adaptation to EU requirements. Not all energy companies will succeed in meeting decarbonisation targets within the deadlines set by the EU, as national economic interests could be a limiting factor. Finally, renewable energy sources alone are not sufficient to ensure a secure energy supply, but must be combined with each other or with nuclear power or gas.
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Notes
- 1.
The main goal of the agreement is to limit global warming to temperatures “significantly below 2 °C”, strengthen the capacity of countries to combat the effects of climate change and ensure food security. The goals also include developing “green” technologies and helping less developed members implement individual national emission reduction plans. The goal is to completely eliminate pollution from greenhouse gas emissions by the end of the twenty-first century. The Paris Agreement was adopted on 12 December 2015 and has been in force since 4 October 2016, when it was ratified by the EU.
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Acknowledgement
This work was supported by the Croatian Science Foundation under Grant number IP-2020-02-1018.
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Pekanov, D., Fosic, I., Jadresic, I. (2023). EU Energy Policy: Implications for Renewable Energy Investments. In: Gartner, W.C. (eds) New Perspectives and Paradigms in Applied Economics and Business. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-23844-4_16
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