Study: Belgium needs 415 billion euros to achieve net zero emissions
Belgium needs to invest 415 billion euros in the coming decades to achieve net zero emissions by 2050, consultancy firm McKinsey said in a report published in Brussels.
The study shows that more than half of the total amount should go to building renovations.
In order to limit global warming to 1.5°C, emissions must be net-zero by 2050, according to the UN Climate Panel, meaning no more greenhouse gases should be released than can be stored or removed from the atmosphere.
This goal remains achievable for Belgium, the study said, despite the need for large-scale, bold and coordinated action across all sectors.
The study estimated that there is a need for incremental investments worth 415 billion euros, or about 2 to 3 percent of Belgium’s gross domestic product during that period, so that net zero by 2050 remains possible, noting that more than half of these investments are required to reduce emissions from carbon dioxide. Primarily private buildings, as many families do not have the means to make their homes more energy efficient.
According to the study, industries in Belgium will invest an additional 30 to 45 billion euros by 2050, pointing out that the transition to net zero emissions could double electricity demand, creating challenges for future electricity supply.
The study proposes amending regulations to determine the appropriate sites for the production of renewable energy, says McKinsey, to enhance the interdependence of electricity imports and reduce the demand for electricity from renewable sources, by considering alternatives such as nuclear energy.