Decarbonizing the economy is a slow, expensive and complex process, though many understand that reducing fossil fuel dependence (coal, oil, and gas) is crucial for mitigating climate change. The European Union (EU) is often considered a global leader in this area, but achieving zero emissions by 2050 remains a challenging task. While certain sectors have made considerable strides, others still face significant barriers.
Energy sector: A success story
The energy sector in the EU is often hailed as a success in decarbonization, with recent data showing that renewable energy sources (RES) now account for over half of the electricity production. Since 2000, the share of electricity from RES has more than doubled. The energy sector’s decarbonization is relatively easier than other sectors, thanks to lower costs and the availability of mature technologies.
The EU’s Emissions Trading System (ETS) has been a key driver of this success, gradually increasing the cost of using “dirty” fuels and making cleaner alternatives, like renewables, more competitive. As a result, emissions from ETS-covered sectors have decreased by 47% since the program was launched in 2005. Despite this progress, the energy sector remains the largest contributor to greenhouse gas emissions, accounting for around 60% of total emissions.
In the future, Brussels plans to further decouple electricity prices from fossil fuel prices to ensure a cleaner, cheaper and more reliable energy supply. However, there is ongoing debate among stakeholders about the specifics of this policy proposal.
Manufacturing: A mixed bag
The manufacturing sector has made progress, but the pace of decarbonization varies significantly across industries. The sector remains the second-largest emitter of greenhouse gases in the EU. While emissions from light industries have been decreasing since 2013, heavy industries, such as steel, cement and chemicals, have lagged behind.
This is largely due to the high heat requirements of heavy industry, which either necessitates expensive electricity or fuels. Furthermore, economic challenges—such as low profit margins and vulnerability to fluctuations in global raw material prices—complicate the transition.
Technological advancements in energy efficiency and cleaner production methods have been a key driver in decarbonizing light industry, but these technologies are either still in development or prohibitively expensive for heavy industry.
Sectors lagging in decarbonization: Construction, transport and agriculture
Some of the most difficult challenges lie in sectors like construction, transport, and agriculture, where progress has been slow and is not sufficient to meet the targets set for 2050.
- Construction: This sector is responsible for 36% of all greenhouse gas emissions in the EU, with buildings accounting for 40% of energy consumption. While operational emissions have gradually decreased, only 1% of buildings are fully energy efficient. The carbon-intensive materials used in construction, such as cement and steel, remain significant obstacles to decarbonization. The lack of incentives for building owners to invest in energy-efficient upgrades further hampers progress.
- Transport: The transport sector accounts for 25% of EU emissions, with road traffic contributing to 75% of that total. There has been positive progress in decarbonizing road traffic, with electric vehicles (EVs) and hybrids gaining market share. However, the sector still faces challenges, particularly in terms of infrastructure, with many EU member states lacking adequate EV charging stations. Additionally, aviation and shipping remain major sources of emissions, with technological barriers preventing the development of zero-carbon fuels for these industries.
- Agriculture: Emissions from agriculture have remained relatively stable since 2005, and the sector faces numerous challenges. Rising food demand leads to increased agricultural production, which in turn drives up emissions. The slow adoption of low-carbon farming practices, high infrastructure costs, and bureaucratic hurdles further slow down the transition. The current EU strategy for sustainable agriculture lacks a clear framework, making it difficult to steer the sector towards decarbonization.
Looking ahead: Challenges for Serbia
While the EU has made significant strides in decarbonizing certain sectors, the process remains challenging and uneven across industries. In the case of Serbia, as a potential future EU member, there are lessons to be learned from the EU’s approach to climate policy. The country will need to adjust its policies and deepen cooperation with the EU, particularly in areas like emissions trading and energy efficiency.
In the short term, Serbia should focus on aligning its policies with the EU’s climate goals, particularly through participation in the EU’s ETS and the development of green technologies. Although decarbonization will be a slow and expensive process, it is clear that collaboration between governments, industries, and consumers is key to success. As the EU continues to refine its decarbonization strategies, Serbia must prepare for the challenges ahead, ensuring that it does not fall behind in the global push for climate action.
Ultimately, the EU’s experience with decarbonization demonstrates that with the right policies and technological advancements, even the most challenging sectors can make progress. However, the task ahead for Serbia will require coordinated efforts, both domestically and with its European partners, to ensure a sustainable, low-carbon future.
