Solar Economy
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Direction Steps on the path towards Solar economy At Fortum, we believe that today’s largely fossil-based energy system will gradually transition to an emissions-free future. Paula Durston Janne Harju T he foundation for building an emissions-free future has already been created in europe. The eU’s 20-20-20 targets to reduce carbon emissions, increase renewable energy, and improve energy efficiency are driving advancements towards a carbon-neutral society. additionally, europe has committed to reduce greenhouse gas emissions by 80% from the 1990 level by 2050. CommoN GamE rulES aNd markETS achieving the targets requires common game rules that support the functioning of the markets and the building of an emissions-free energy system. a single goal should be steering the post- 2020 eU energy and climate policy: the reduction of carbon dioxide emissions. Multiple individual goals easily lead to overlapping – and even conflicting – steering mechanisms. In common markets, the shared, market-based steering mechanisms, like emissions trading, would be the most cost-efficient way 10 Fortum forAgendA to achieve the set emissions reduction goal. a broader goal is for global emissions markets. new forms of energy production must also be made financially feasible. even though subsidising certain renewable energy production forms during the technology development phase is warranted, the goal must be for competitive and marketbased production of renewable energy after 2020. Public subsidies must primarily target the development of new production technologies, not the production. ENErGy EFFiCiENCy iS FuElliNG ChaNGE In the capital-intensive energy industry, changes are slow and the transition towards Solar economy is gradual. Increasing energy efficiency is the only option in the short term as it will take time before the fully emissions-free production forms become more common. In combined heat and power production (CHP) up to 90% of
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