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

The report analyzes the European energy transition through a 'System Value' framework, moving beyond cost-centric metrics to evaluate holistic benefits. It identifies key recovery solutions—including the hydrogen economy, connected cities, and grid modernization—to accelerate the transition toward a net-zero integrated energy system. The analysis quantifies potential CO2 reductions, job creation, and human health benefits from air quality improvements, while highlighting the role of digitalization and the EU Recovery Fund in supporting these goals.

• The 'System Value' framework evaluates energy solutions across four primary dimensions: economic, environmental, societal, and energy system value, aiming to shift focus from cost to overall value.
• The European electricity market is at a 'pivot point' where annual variable renewables reach 20%-30% (and over 50% instantaneous), requiring transformational elements to move toward a net-zero integrated energy system.
• The 'Connected Cities and Electrification' solution, focusing on efficiency, e-mobility, and decarbonized heating, could result in 489,000 incremental jobs and €36bn in human health benefits from air quality improvements by 2030.
• Transforming power markets and networks to increase the share of wind and solar from 55% to 60% by 2030 could reduce 2030 base case electricity emissions by 117 Mt and create over 1 million incremental jobs.
• Developing a hydrogen economy, specifically through the decarbonization of 3,000 industrial clusters, could reduce industrial CO2 emissions by 529 Mt by 2050 and create between 387,000 and 912,000 jobs.
• The EU's 'Next Generation EU' recovery instrument proposes €750 billion, with 30% of the overall EU budget allocated to climate investments, including the installation of 1 million charging points.
• COVID-19 caused a temporary 8% decline in electricity demand across Europe's five largest markets in the first half of 2020, though coal-based generation fell by 25% in Q1 2020.
• To achieve a green hydrogen system, the EU may need to import hydrogen from neighboring regions like North Africa and Ukraine, with a potential 40 GW export market that could reduce annual CO2 emissions by 45 million tons.

APA

World Economic Forum (2020). Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis. http://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis_2020.pdf

Chicago

World Economic Forum. Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis. 2020. http://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis_2020.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis |date=October 2020 |url=http://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis_2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020shaping, author = {{World Economic Forum}}, title = {{Shaping the Future of Energy and Materials System Value Framework – Europe Market Analysis}}, institution = {World Economic Forum}, year = {2020}, month = oct, url = {http://www3.weforum.org/docs/WEF_System_Value_Europe_Market_Analysis_2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }