Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis

The report proposes a holistic 'System Value' framework to evaluate energy transitions beyond cost, focusing on economic, environmental, societal, and technical dimensions. For Europe, it identifies key recovery solutions—including the decarbonization of industrial clusters, electrification of transport and heating, and the modernization of grids—to help the EU meet its 2030 target of a 55% reduction in GHG emissions from 1990 levels. The analysis highlights that increasing variable renewable energy (VRE) penetration to 55% by 2030 is the foundational driver for these reductions, potentially abating 590 Mt of CO2 net of other solutions. The report also quantifies significant co-benefits, such as €255 billion in human health benefits from improved air quality and the creation of millions of jobs in the wind and solar sectors.

• The EU aims to reduce greenhouse gas emissions by 55% from 1990 levels by 2030. Implementing the report's proposed solutions could provide an additional 1,264 Mt reduction, covering 75% of the residual gap from 2018 levels.
• Increasing the share of variable renewable energy (VRE) from 14% in 2018 to 55% by 2030 is a foundational solution that would result in a net CO2 reduction of 590 Mt.
• The transition to a majority VRE system is expected to create over 7 million incremental jobs through 2030.
• Decarbonizing Europe's 3,000 industrial clusters through carbon capture, systemic efficiency, and electrification could abate between 25 and 325 Mt of CO2 by 2030.
• The electrification of road transport, including the target of 1 million public charging points, is projected to reduce CO2 by 64 Mt in 2030 and create 188,000 jobs that year.
• The EU's green hydrogen strategy targets the production of 7.4 Mt of renewable hydrogen per annum by 2030, requiring 31 GW of offshore wind and 22 GW of solar capacity within the EU.
• Improving air quality through the proposed recovery solutions is estimated to generate nearly €255 billion in human health benefits by 2030.
• Modernizing electricity transmission in the EU28 between 2021 and 2030 is projected to require €152 billion in capital expenditure, though some estimates suggest a four-fold increase in planned spending is needed to meet climate goals.
• The 'Next Generation EU' recovery instrument provides €750 billion, with 30% of the overall EU budget allocated to climate investments.

APA

World Economic Forum (2021). Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis. https://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis.pdf

Chicago

World Economic Forum. Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis. 2021. https://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis |date=April 2021 |url=https://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021shaping, author = {{World Economic Forum}}, title = {{Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis}}, institution = {World Economic Forum}, year = {2021}, month = apr, url = {https://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }