A new study conducted by the Bertelsmann Stiftung has concluded that rural regions in the European Union (EU) are likely to benefit most from the shift to renewable energy, with an increase of up to 4.9 percent in employment and up to 1,570 euros per capita in added value by 2050. However, the energy transition poses a challenge for many urban regions and areas whose industry is heavily dependent on fossil fuels, with up to 2,450 euros less per capita in value added and up to 2.1 percent less employment by 2050.
Thomas Schwab, Economist at the Bertelsmann Stiftung, commented: “The energy transition opens up opportunities for rural regions, while new challenges arise for urban centers. What is needed in view of these regional differences is an expansion of the strategy. On the one hand, the negative effects must be counteracted, particularly in urban regions. On the other hand, rural regions must be helped to realize their full potential. An adapted European cohesion policy is now more necessary than ever to meet these challenges.”
The European Union is hoping to reach climate-neutrality by 2050, with the biggest challenge being the decarbonization of the European energy system. The study reveals that regions which are already leaders in the expansion of renewable energy and rural areas with high potential for generating renewable energy will benefit the most. An example of this is the contrast between Berlin and Brandenburg, with the rural area around the German capital set to benefit from the energy transition.
The findings suggest that economic balance and equality between regions in Europe can be achieved, but only with additional support for urban areas.
A new study by the Bertelsmann Stiftung has revealed that rural EU regions stand to benefit the most from the shift to renewable energy, with an increase of up to 4.9 percent in employment and up to 1,570 euros per capita in added value by 2050. However, many urban regions and areas whose industry is heavily dependent on fossil fuels could face negative impacts on employment and economic prosperity, with up to 2,450 euros less per capita in value added and up to 2.1 percent less employment by 2050.
Thomas Schwab, Economist at the Bertelsmann Stiftung, said: “The energy transition opens up opportunities for rural regions, while new challenges arise for urban centers. What is needed in view of these regional differences is an expansion of the strategy. On the one hand, the negative effects must be counteracted, particularly in urban regions. On the other hand, rural regions must be helped to realize their full potential. An adapted European cohesion policy is now more necessary than ever to meet these challenges.”
The European Union is aiming to reach climate-neutrality by 2050, with the biggest challenge being the decarbonization of the European energy system. The study indicates that regions which are already leaders in the expansion of renewable energy and rural areas with high potential for generating renewable energy will benefit the most. An example of this is the contrast between Berlin and Brandenburg, with the rural area around the German capital expected to benefit from the energy transition.
The findings suggest that economic balance and equality between regions in Europe can be achieved with additional support for urban areas.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.