Comparison of major EU and climate scenarios for 2040: what contribution from energy savings and sufficiency?

Extended abstract 3-288-26

While the role of energy demand reduction to meet climate objectives is increasingly considered, most scenarios do not fully reflect this potential, and only a few explore low-demand pathways. Literature reviews show that this is not only due to preferences of modellers or scenario users, but also to structural limitations of models.
This analysis investigates how main energy and climate scenarios for Europe balance demand and supply-side options and how this is informing policy making, with a particular focus on the setting of EU 2040 targets.

It first focuses on a comparison and benchmark of scenarios. Eight prominent scenarios by institutions, think tanks and an NGO are selected on criteria of comprehensiveness, detail of modelling and compliance with the Paris Agreement. They are then characterised using 14 indicators that reflect their outcomes (GHG budget, fossil fuel consumption) and their use of major levers (renewables, hydrogen, electrification, reduction of consumption, carbon sinks).

These numbers are then compared to targets and thresholds drawn from reports on climate objectives and the potential of various options by the European Scientific Advisory Board on Climate Change (ESABCC). This benchmark of the relative ambition and feasibility of scenarios shows a positive correlation between demand reduction – compared to stronger reliance on supply-oriented options – and climate ambition, feasibility and robustness, providing major lessons for the EU’s 2040 target setting.

The analysis then reviews detailed assumptions on energy demand for buildings and mobility, comparing the low-demand CLEVER scenario with the Commission's S3 – one of the few providing such detail. Beyond the transparency gap in data, this comparison reveals the prevalence in a scenario like S3 of trend-based projections of activity, contrasting with CLEVER’s explicit modelling of energy services. Analysing this gap can help to inform policies about the potential of energy savings.

Read the full abstract.

Download presentation.