The European Commission has set the ambitious objective in its landmark EU Green Deal of becoming climate neutral by 2050. A core part of that effort is a push to decarbonize the energy sector — something that has enormous implications for the oil and gas industry and for the billions invested in infrastructure like pipelines.
The political challenge for Brussels is striking the right balance between possible short-term energy security concerns and the bloc’s long-term climate objectives. It also wants to avoid the risk of financing stranded assets — the term for things like pipelines, oil wells and coal mines that can no longer function in a world of greener energy. The Commission is under pressure to bar investments in natural gas from its future Projects of Common Interest (PCI).
The industry is scrambling to adapt to this changing environment. One big push is to shift away from natural gas — a fossil fuel, albeit a much cleaner one than coal — in favor of green gases like biogas and possibly hydrogen. If that works, then infrastructure like pipelines may have a reason for existing after 2050.
Key questions to be addressed include:
- Does natural gas have a long-term future as the EU aims to become carbon neutral by 2050, or is it simply a short-term transition fuel?
- What would be the impact of an increasing share of decarbonized and green gas injected into the grids in terms of security of supply? Would that have an impact on Europe’s energy independence?
- What would be the political and financial impact of a shift away from natural gas for countries like Norway and Russia?
- Does the EU have a role in promoting greener gases, or should that be left to the market?
- How would a greener gas infrastructure differ from today’s? Do current pipelines make sense under a carbon neutral scenario?
- How important is it for gas projects to be included on the PCI list? How digitization can help the EU to become climate neutral?
One year after the launch of the EU Green Deal, POLITICO event convenes a high-level discussion to discuss about green gras and the future of gas grids in a climate neutral Europe Union.
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