The energy industry in the European Union (EU) is a cornerstone of the region’s economy, providing essential power for industries, transportation, and households. It significantly contributes to economic growth, supporting millions of jobs and accounting for approximately 3% of global GDP. However, the sector is also one of the largest contributors to environmental degradation, responsible for roughly 75% of the EU’s total greenhouse gas emissions. As the world confronts the pressing challenges of climate change, resource depletion, and the urgent need to transition to sustainable energy, the energy sector must undergo transformative changes to meet both current and future energy demands while minimizing its environmental impact.
In response to these challenges, the Energy Council, powered by the SIERA Alliance, was established under the EUTECH Ecosystem to guide and support the critical transformation of the energy sector. This initiative aligns with major EU initiatives such as the European Green Deal, which aims to make Europe the first climate-neutral continent by 2050, and the Corporate Sustainability Reporting Directive (CSRD), which mandates greater transparency and accountability in corporate sustainability efforts. Additionally, the Energy Council is committed to meeting Environmental, Social, and Governance (ESG) criteria, which have become increasingly important for investors and stakeholders across the EU as they focus on sustainability and ethical governance.
The formation of the Energy Council was prompted by the sector’s significant environmental impact, primarily due to its reliance on fossil fuels and the associated emissions of CO2, SO2, and NOx. Addressing these issues requires a strategic approach to reducing the energy sector’s carbon footprint, improving energy efficiency, and integrating renewable energy sources. The Council’s mission is to provide a platform for industry leaders, policymakers, and stakeholders to collaborate on innovative solutions that will drive the energy sector towards a more sustainable and resilient future, ensuring energy security while mitigating environmental impact.
Since its establishment, the Energy Council has spearheaded several key initiatives aimed at promoting sustainable energy practices, with a strong focus on aligning with the EU Green Deal and the CSRD. Recent activities include a series of webinars and sector papers exploring the European Sustainability Reporting Standards (ESRS), with particular attention to ESRS E2, which focuses on pollution prevention in energy production, and ESRS G1, which covers governance issues such as corporate ethics and anti-corruption measures. These discussions have been instrumental in guiding the energy industry towards integrating sustainable practices and meeting the ambitious targets set by the EU Green Deal. The webinars and sector reports have emphasized the importance of ESG criteria in driving industry transformation and creating a more sustainable future for the energy sector.
By focusing on the ESRS E2 pollution standards, the Energy Council has underscored the need for the energy sector to not only reduce its environmental impact through the adoption of cleaner technologies and sustainable energy solutions but also to uphold rigorous governance standards that ensure ethical practices across the board. The insights gained from these discussions are vital in helping the energy industry meet the ambitious goals set by the EU Green Deal, reinforcing the Council’s mission to drive significant change and ensure that the sector contributes to a sustainable and resilient energy future for Europe.
One of the Energy Council’s most impactful recent activities was a series of webinars held in the third quarter of this year, which brought together industry experts, policymakers, and stakeholders to discuss the latest advancements in sustainable energy production. A particularly notable event was the September webinar, which focused on ESRS E2 under the theme “Best Practices for Reducing Pollution in Energy Production.” This webinar attracted a wide range of participants and highlighted the crucial role of governance and ethical standards in the energy industry. The discussions addressed several pressing issues, including the prevalence of corruption, fraud, and unethical practices within the sector, as well as the complexities of regulatory compliance across various energy markets, the challenges of decentralizing energy production, and the need for greater transparency and accountability. Furthermore, the webinar emphasized the importance of fostering a culture of ethics and governance, especially in the context of project management and its impact on whistleblowing and supplier relations.
The Energy Council provided concrete recommendations to address these challenges, emphasizing the need to strengthen anti-corruption measures, enhance regulatory compliance, and implement robust governance in energy supply chains. Additionally, improving transparency in financial reporting and promoting ethical business practices were highlighted as essential components for driving sector-wide change. The Council also stressed the importance of establishing effective whistleblower systems and advancing Supplier Relationship Management (SRM) to strengthen project management processes. The comprehensive solutions presented during the webinar spanned a wide range of issues, from transitioning to renewable energies and implementing climate protection measures to advancing waste and circular economy practices, managing water and marine resources, and enhancing environmental planning.
The discussions also highlighted the importance of digital innovations, corporate policy development, community engagement, workforce management, and value chain labor practices. These solutions collectively aim to tackle the governance challenges faced by the energy sector, ensuring that the industry not only meets but exceeds the ethical and sustainability standards required to achieve the ambitious goals of the EU Green Deal. By implementing these strategies, the Energy Council is paving the way for a more sustainable, transparent, and ethically driven energy industry that will lead Europe’s transition to a green economy.
The Energy Council’s initiatives have laid the groundwork for future discussions while also establishing a solid foundation for sustained progress in the coming months. Central to the Council’s roadmap is a series of strategic measures designed to advance the energy sector’s sustainability goals, aligning with the broader environmental and governance frameworks of the European Union. A key component of these initiatives is the development of sector-specific papers following each webinar, with each paper focusing on one of the European Sustainability Reporting Standards (ESRS) principles discussed during the sessions. These papers will address topics ranging from ESRS E2, which focuses on pollution reduction and environmental protection, to ESRS G1, which highlights governance and ethical practices in the energy industry.
As these sector papers are completed, they will collectively form the basis for the Energy Council’s comprehensive White Paper. This document will provide a strategic and detailed overview of how the energy sector can meet the significant challenges posed by sustainability and governance requirements. The White Paper will serve as a valuable resource for stakeholders across the energy industry and act as a precursor to the creation of the EUTECH Position Paper. The Position Paper will articulate the Energy Council’s official stance on key sustainability issues and outline actionable recommendations for aligning the sector with the ambitious targets of the EU Green Deal and CSRD. Through these efforts, the Energy Council is positioned to play a vital role in guiding the energy industry toward a more sustainable and ethically responsible future, ensuring that every aspect of energy production—from generation and distribution to governance—contributes to a greener and more resilient Europe.
Looking ahead, the Energy Council’s efforts are focused on addressing some of the most pressing challenges within the EU energy sector. As of May 2024, one of the most critical issues is the continued reliance on fossil fuels, with approximately 75% of the EU’s energy consumption still derived from non-renewable sources. This reliance, combined with increasing energy demand, presents a significant challenge to meeting the EU’s carbon neutrality targets. In this context, the Energy Council’s role in fostering innovation and driving sustainable growth is more crucial than ever. By advancing initiatives that not only fulfill regulatory requirements but also stimulate market demand for renewable energy solutions, the Council is unlocking new opportunities for the sector.
Recent trends highlight the potential for growth within the energy industry, particularly in regions accelerating their renewable energy adoption. For instance, Sweden and Finland, two leading EU countries in renewable energy, have seen significant increases in their renewable energy output. Sweden’s renewable energy capacity rose by 30.4%, while Finland saw a 38.3% increase in 2023. These figures demonstrate the energy sector’s capacity for expansion when aligned with sustainable practices and supported by strategic policy frameworks, reinforcing the role of the Energy Council in driving Europe’s transition to a sustainable energy future.
In conclusion, the Energy Council, in line with the SIERA Alliance framework, plays a pivotal role in driving the transformation of the energy sector toward a more sustainable and resilient future. The Council’s initiatives are helping to align the energy industry with the broader objectives of the EU Green Deal, CSRD, and ESG criteria, ensuring that the sector can continue to thrive while significantly reducing its environmental footprint. As the Council leads the way in promoting sustainable practices, it is shaping a future where the energy sector is not only a key contributor to economic growth but also a global leader in sustainability.
