Today, talking about energy decarbonization is talking about one of the most significant transformations facing modern society. The urgency to curb climate change and reduce harmful emissions has made the energy transition an unavoidable necessity, both for public institutions and for the business community and citizens. Understanding What does decarbonizing the energy system entail? and how it affects us can make the difference between successfully adapting to the new paradigm or falling behind in the global context.
This detailed guide will help you understand, step by step, the fundamentals, challenges, benefits and opportunities of energy decarbonization, as well as the main strategic frameworks, policies, and tools available in Spain and internationally. It is designed so that anyone, regardless of their technical background, can find useful and up-to-date answers about one of the key processes for the future of the planet.
What is energy decarbonization and why is it essential today?
Energy decarbonization is the process of drastically reducing, and eventually eliminating, emissions of carbon dioxide (CO2) and other greenhouse gases. generated by the production and use of energy, mainly through the replacement of traditional fossil fuels with renewable sources such as solar, wind, hydroelectric, biomass or new energy vectors such as renewable hydrogen. This transition is essential to achieve the goals of the Paris Agreement and limit global warming to safe levels., avoiding the most devastating effects of climate change.
The energy sector is responsible for a massive portion of global emissions, Since we have depended on resources such as oil, coal, and natural gas for over a century, Europe, in its Green Deal, and many other countries have set the goal of achieving climate neutrality by 2050, which entails a radical change in the way we produce, distribute, and consume energy.
Key elements in the energy transition
Transitioning to a low-carbon energy system involves transforming the economy and society at multiple levels. Spain, in particular, has adopted a Strategic Energy and Climate Framework since 2019 that impacts several essential levers:
- The Climate Change and Energy Transition Law: provides a regulatory and legal framework for the measures already underway and guides the transformation until 2050. It is the legal compass for national decarbonization.
- The National Energy and Climate Plan (PNIEC) 2023-2030: sets targets for emission reduction, renewable energy penetration, and energy efficiency, with clear milestones for the next decade.
- The National Climate Change Adaptation Plan (PNACC) 2021-2030: articulates the responses needed to minimize damage and increase resilience to the current and future effects of climate change.
- The Just Transition Strategy: ensures that the transformation does not leave behind the most vulnerable groups or territories historically dependent on the fossil fuel industry.
- Long-Term Decarbonization Strategy (LTS 2050): sets the path to reducing emissions by 90% by 2050 compared to 1990 levels, with natural sinks capable of absorbing the remainder.
In addition, Spain has specific sectoral roadmaps for self-consumption, renewable hydrogen, biogas, marine energy, storage or management of raw materials, as well as economic instruments such as the Recovery, Transformation and Resilience Plan (PRTR) and strategic projects such as PERTE ERHA, which mobilize billions for green investments.
How is energy decarbonization carried out?
Decarbonization is not a single project, but a set of coordinated actions in production, consumption, and regulation:
- Accelerated expansion of renewable energies: The massive integration of solar, wind, hydraulic and biomass technologies allows for the replacement of fossil generation in the energy mix.
- Boosting energy efficiency: From building renovations to modernizing industrial processes, the goal is to consume less and better.
- Electrification of key sectors: Transport (electric vehicles and charging infrastructure), air conditioning, industry, etc., are migrating from fossil fuels to renewable electricity.
- Development of new energy vectors: Renewable hydrogen and biomethane are emerging as solutions for sectors that are difficult to electrify and for large-scale storage.
- Digitalization and smart grids: They allow the variability of renewables to be managed and offer stability and security to the system.
- Promoting the circular economy: Reusing and recycling materials minimizes the extraction of new resources and the environmental footprint.
Each of these pillars requires significant investments, technological adaptation and cultural changes., both by businesses and consumers and public administrations.
Who is affected by decarbonization?
The whole of society participates, directly or indirectly, in the energy transition:
- Energy companies: They must review their portfolios, invest in clean technologies and adapt their business models.
- Industry and services sector: They face the need to modernize processes, adopt renewable sources and improve their efficiency.
- Domestic consumers: from changes in consumer habits to the commitment to photovoltaic self-consumption, electric mobility, or energy-efficient home renovation.
- Public sector and governments: They create policies, tax incentives and regulations that encourage or penalize certain practices.
- Local communities and territories: Especially those areas most dependent on coal or fossil fuels must be supported in the process to avoid negative social impacts.
- Transport and mobility sector: migrate towards clean vehicles, promoting efficient collective and urban transport.
Ultimately, decarbonization is a collective process, where coordinated action multiplies benefits and helps avoid friction and inequalities.
Major challenges and barriers to decarbonization
The path to a low-carbon economy is fraught with challenges that require innovative and consensual solutions:
- Economic costs and financing: Despite the lower cost of renewable energy, the initial investment remains significant, and many projects require aid, loans, and public-private partnerships.
- Intermittent renewable energy: Solar and wind production is variable and requires advanced storage systems and smart grids to ensure a constant and balanced supply.
- Social and political resistance: Vested interests, lack of information, and perceived risks can delay the adoption of new disruptive technologies or policies.
- Technological development: Some solutions, such as large-scale renewable hydrogen or mass storage, still need to advance in maturity and costs.
- Employment and just transition: We must guarantee job alternatives and training for workers in declining sectors, such as coal or conventional automotive.
Overcoming these challenges is possible through a combination of regulation, investment, technological innovation, and social awareness campaigns. International collaboration and the exchange of best practices also play an essential role.
Regulatory and strategic context in Spain
Spain has developed a robust legal and strategic architecture to lead the energy transition:
- Long-Term Decarbonization Strategy (LTS 2050): It sets the path to reducing greenhouse gas emissions by 90% by 2050 compared to 1990 levels (from 334 MtCO2eq in 2018 to 29 MtCO2eq in 2050). The remaining 10% will be absorbed by natural sinks such as restored forests and wetlands.
- Interconnection with the European Union: Spain aligns itself with Europe's ambition to reduce emissions by at least 55% by 2030 and achieve climate neutrality by 2050.
- It includes measures to multiply the electrification of demand, expand self-consumption, renewables and energy efficiency, and transform sectors such as industry, construction, transportation and agriculture.
- Economic instruments such as the PRTR and various PERTEs (Strategic Projects for Economic Recovery and Transformation): They mobilize direct investments and incentives for innovation and green job creation.
Economic, social and environmental impacts of decarbonization
Energy decarbonization has impacts beyond emissions reduction:
- Economic competitiveness: Reducing dependence on fossil fuels and investing in domestic technologies (solar, wind, storage, green hydrogen) strengthens industrial leadership, enabling an estimated saving of up to €344.000 billion in energy imports by 2050.
- Growth and employment: The strategy envisages the creation of around 300.000 new jobs annually and a stable employment increase of 1,6% compared to scenarios without decarbonization.
- Health and social welfare: Reducing air pollution reduces respiratory and cardiovascular diseases, with a projected reduction in premature deaths of more than 60% by 2050.
- Energy security: We will go from importing 73% of our energy in 2018 to 13% in 2050, strengthening our autonomy and resilience in the face of international crises.
- Ecosystem protection: Restoring natural habitats and reducing emissions improve biodiversity and the management of water and soil resources.
Decarbonization can decouple economic growth and energy consumption, making it possible to generate more wealth with less energy and less environmental impact.
Public policies and calls to promote decarbonization
Institutional support is key to accelerating the transition and is embodied in various programs and aid:
- PERTE ERHA: More than 4.000 billion euros in calls for self-consumption, biogas, green hydrogen, storage, and strengthening the electricity grid.
- PERTE VEC: It incentivizes the electric vehicle industry and its infrastructure with aid of up to 200 million euros.
- Transmissions: funds collaborations between companies and research centers in emerging clean energy technologies.
- PERTE for Decarbonization: seeks to transform industries through process innovation and carbon footprint reduction.
- PRTR: allocates nearly 40% of its investments to ecological transition, digitalization and social cohesion.
Sectoral areas: energy transformation, industry, transport, construction and agriculture
Decarbonization adapts to the specificities of each sector to ensure an effective transition:
Electric sector
It is the main engine, where by 2050, 97% of final consumption will be renewable, and the sector will be completely emission-free by mid-century. Storage management and digitalization are essential to ensuring the stability of the system.
Mobility and transport
The mobility of the future will be based on renewable energy: At least 79% of transportation energy is expected to be renewable by 2050, through electrification, biogas, renewable hydrogen, and smart urban planning. A reduction of more than 98% in current emissions is estimated.
Industry
The challenge in the industry is high, However, a 90% reduction in emissions is projected, with a focus on efficiency, electrification, the use of alternative raw materials, and hydrogen. The circular economy and carbon capture will be an essential part of the strategy, supported by R&D&I policies.
Building
By 2050, buildings will be energy-efficient and emission-free, with a thorough renovation of existing homes and new, nearly zero-energy construction. Most air conditioning systems will use renewable energy, boosting local employment in renovation.
Agriculture and waste
The reduction potential in these areas is lower, However, sustainable management and digitalization, along with the use of biogas and the circular economy, will allow agricultural emissions to be reduced by around 60% and waste emissions by 81% by 2050 compared to baseline values.
Environmental benefits
Decarbonization not only helps to curb climate change, but also has direct benefits for the environment:
- Air quality improvement: reduction of pollutants such as SO2, NOx and fine particles, reducing respiratory and cardiovascular diseases.
- Ecosystem protection: Restoring forests and wetlands increases carbon sinks and biodiversity.
- Less pressure on water and soil resources: agriculture and industry that are more sustainable and efficient in the use of natural resources.
- Benefits for human and animal health: Less pollution promotes general well-being and the protection of natural habitats.
Education, awareness and innovation
A profound cultural shift is essential to advance decarbonization. Environmental education, awareness campaigns, the promotion of research, and support for innovative startups are essential for society to understand the challenges and opportunities presented by the energy transition.
Governments and public entities must lead by example, offering clear information, training resources and support to those who face greater difficulties in adapting.
International alliances and global context
Decarbonization transcends national borders. The International Energy Agency (IEA) notes that to avoid exceeding 1,5°C, global emissions must be reduced by at least 45% by 2030 and achieve carbon neutrality by 2050. Europe leads the way with its Green Deal, and other economies such as the US and China are also increasing their investments in green infrastructure.
Organizations such as the International Monetary Fund and the World Bank allocate resources to facilitate a just and inclusive transition worldwide.
Energy efficiency services and solutions
The business sector has various services available to facilitate the transition:
- Energy consulting: strategic advice tailored to each organization.
- Consumption management: digital monitoring to optimize processes and reduce costs.
- Energy markets: access to renewable rates and products.
- Sustainable mobility: electric fleets and efficient public transport.
- Construction and rehabilitation: advanced techniques for sustainable buildings.
- Manufacturing efficient products: technologies and materials with a smaller footprint.
- Energy service contracts (ESC): guarantees savings and maintenance of facilities.
These services are key to enabling businesses and organizations to meet their energy and environmental goals, as well as reduce costs over the long term.
Future and pending challenges
The decarbonization process presents opportunities, but also requires important strategic decisions. There are still barriers to overcome in technology, financing, and social acceptance. However, the roadmap is clear and points to a more prosperous, innovative, and fair energy system.
Commitment in the coming years will be decisive to consolidate technological advances, expand training in green jobs, and ensure that no one is left behind in this transformation.
Energy decarbonization is much more than an environmental challenge: it is a historic opportunity to build a modern, competitive, fair, and resilient economy, in which health, equity, and respect for the planet's limits are priorities. Committing to it means investing in a sustainable and secure future for future generations.
