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The document warns that Europe is creating substantial LNG import overcapacities despite declining gas consumption, risking the creation of stranded assets and locking the continent into a polluting energy system. It specifically calls out power utilities ENGIE, Enel, and RWE, and urges their financial backers to demand a halt to new terminal projects and long-term contracts.

Analysis of data from the Global Trade Alert database indicates that climate-related industrial policies in major trading economies often trigger 'echo' effects, where subsidy awards and import restrictions by one nation lead to similar responses from others within 6 to 24 months. The study finds that the EU-27 reacts almost every time to Chinese and US moves in net-zero sectors, while Chinese industrial policy support most frequently elicits import curb reactions from both the EU-27 and the USA. These patterns raise concerns regarding tit-for-tat trade conflicts and market access risks, suggesting a need for greater international alignment and transparency in supply-side interventions for the low-carbon transition.

The study finds that direct electrification could replace 90% of the energy demand not yet electrified in European industry by 2035. While technologies like heat pumps and electric boilers are mature for low-temperature needs, high-temperature applications in sectors like cement and steel require further development of plasma, shock-wave, and resistance heating. The report highlights that economic barriers—specifically the price gap between electricity and natural gas—and organisational hurdles, such as insufficient grid infrastructure and long equipment lifetimes, are more significant obstacles than technical limitations. It argues that direct electrification is generally more energy-efficient than indirect electrification via hydrogen, particularly for low-temperature applications.

The report identifies that the ten largest emitters in the EU-ETS are all coal power plants, which together account for 25% of the power sector's emissions. While 2022 saw a 6% increase in coal emissions due to the energy crisis, the long-term trend remains a decline. Germany and Poland dominate the emissions landscape, and three utilities—RWE, PGE, and EPH—have remained the top emitters for six consecutive years.

The report finds that EU electricity demand nearly returned to 2019 levels by August 2020, leading to a surge in coal generation. This trend was exacerbated by record low nuclear output in France, which created a supply gap that wind and solar growth could not fully fill, resulting in coal generation reaching its highest level since March 2020.

In the first half of 2020, renewable electricity generation in the EU-27 reached 40%, surpassing fossil fuel generation at 34%. This shift was driven by record wind and solar penetration and a 7% drop in electricity demand caused by COVID-19. Coal generation fell by 32%, contributing to a 23% reduction in power sector CO2 emissions. While grids remained stable, the increase in renewables led to more frequent negative wholesale electricity prices, indicating a need for greater system flexibility. Poland emerged as the most coal-dependent EU country, generating as much coal-fired electricity as the other 25 EU members combined.

The document examines the tension between adopting low-GHG consumption lifestyles in wealthy nations and the economic stability of developing countries that rely on international trade. Using a scenario developed for the Waste & Resources Action Programme (WRAP), the analysis finds that while shifting spending from imported goods to domestic services can increase the GDP of a high-income country like the U.K., it can lead to significant GDP declines in LDCs, primarily due to reduced demand for clothing and manufactured goods. The authors argue for the need to identify trade strategies that simultaneously achieve climate mitigation and poverty alleviation, such as preferentially sourcing from low-GHG, low-income regions.