Speed of technological transformations required in Europe to achieve different climate goals

Abstract

Europe's contribution to global warming will be determined by the cumulative emissions until climate neutrality is achieved. In this paper, we investigate alternative transition paths under carbon budgets corresponding to temperature increases between 1.5 and 2C. We use PyPSA-Eur-Sec, an open model of the sector-coupled European energy system with high spatial and temporal resolution. All the paths entail similar technological transformations, but the timing of the scale-up of important technologies like water electrolysis, carbon capture and hydrogen networks differs in the model. In our results, solar PV, onshore and offshore wind become the cornerstone of a net-zero energy system enabling the decarbonisation of other sectors via direct electrification (e.g. heat pumps and electric vehicles) or indirect electrification (e.g. using synthetic fuels). Under the cost and performance assumptions applied, for a social cost of carbon (SCC) of 120EUR/tCO2, transition paths under 1.5 and 1.6C budgets are, respectively, 8%, and 1% more expensive than the 2C-budget because building assets earlier costs more. These pathways also see a faster ramp-up of new technologies before 2035. Under these assumptions, the 1.5C-budget is cost-optimal in our model, if SCC of at least 300 EUR/tCO2 is considered. Moreover, we discuss the strong implications of the SCC and discount rate assumed when comparing alternative paths. We also analyse the consequences of different assumptions on the cost and potential of CO2 sequestration.