Accelerating the green transition: focus on the role of digital infrastructures in decarbonising #cities, #energy and mobility sectors
The EU set legally binding self-obligations to achieve net-zero greenhouse gas emissions (GHGs) by 2050, necessitating extensive decarbonisation across all sectors. These objectives are part of a legally binding target set by the European Climate Law and are also at the heart of the European Green Deal.
Two important publications of the European Commission (EC) recently highlighted the importance of integrating digital technologies
- with management and governance of climate neutral and smart cities, as well as
- with energy and mobility systems.
This integration is not only crucial for meeting European net-zero goals, but also, and especially, presents unique opportunities for the European Union, its cities, and its citizens.
Integration of digital technologies with climate neutral and smart cities
The first publication by Directorate-General for Research and Innovation (EC), ‘100 climate-neutral and smart cities by 2030’ sets out an initiative to make 100 EU cities climate-neutral and smart by 2030, serving as innovation hubs to help all European cities achieve climate neutrality by 2050. The initiative offers tailor-made advice, funding opportunities, and support for research, innovation, and citizen involvement through the Mission Platform managed by the NetZeroCities consortium.
We have underlined the following benefits for European cities and citizens:
- Unlocking additional funding and financing opportunities through a Mission label
- Research & innovation funding opportunities for cities to join large innovation actions, pilot projects, and demonstrations
- Support through a national coordination network
- Networking opportunities, learning, and exchange of experiences among cities
- Support with involving citizens in decision-making
- High visibility – raised political profile and attractiveness for investment and skilled workers
Cities will develop Climate City Contracts, which are ambitious yet non-binding commitments involving citizens and stakeholders to outline their plans for achieving climate neutrality. The initiative includes diverse cities from all EU member states and associated countries, fostering collaboration, learning, and the sharing of best practices across Europe.
Transformative potential of digital infrastructures
The second publication, a report by the Fraunhofer Institute supported by DG CONNECT, highlights the transformative potential of digital infrastructures in advancing decarbonisation, particularly at the intersection of energy and mobility.
Significant investments are required to interconnect sectors like energy, mobility, industry, and agriculture.
Our highlights are as follows:
- Electrification is key to reducing GHG emissions, but the EU faces an annual infrastructure investment gap of over €406 billion. Bridging this gap is essential for the green transition through innovative cross-sectoral solutions, such as bidirectional charging of electric vehicles (EVs).
- The concept of the Digital Spine aims to address this gap by leveraging advanced digital technologies. The concept is designed to address the above-mentioned gaps by facilitating decentralised intelligence through enhanced communication and standardisation at the interfaces of various sectors. This approach increases the efficiency and sustainability of existing infrastructures and optimises the use of renewable energy sources (RES). This digital layer enables the optimal use of RES across sectors, reducing the need for extensive physical infrastructure investments.
- This, in turn, streamlines the deployment of renewable energy solutions and energy flexibility measures that accelerate progress towards European sustainability goals, while ensuring long-term economic competitiveness of the EU.
Note that Generative AI (GenAI) plays a crucial role in the Digital Spine by optimising smart grids, integrating RES, and coordinating EV charging to balance grid loads. This aligns with the broader sustainability objectives of the new European law on AI, namely the EU AI Act, which was analysed in our recent post.
The Fraunhofer report concludes with four critical Building Blocks:
- Enabling bidirectional charging through digital identity management
- Establishing cross-border EV charging infrastructure
- Connecting bidirectional charging with smart energy applications
- Building cross-sector connections to close digital infrastructure gaps
A cross-sectoral deployment of AI, including GenAI, optimising smart grids and integrating renewable energy in mobility and transportation, has also recently been underlined and developed by our President, Dr. Monique Calisti, along with the deployment of Data and Robotics. In her keynote presentation at the European Convergence Summit 2024, Dr. Calisti highlighted and developed on the potential of the most advanced digital technologies to help address several socio-ecological challenges across various sectors. She emphasised the contribution of these technologies to improving several impactful activities relevant for the present analysis, including:
- Optimising resource management and efficiency
- Optimising processes and supply chains
- Improving environmental monitoring and analysis
Read the full analysis and insights here.
Overall, immediate European-level action and investment in the most critical digital infrastructures and technologies is necessary to accelerate the green transition, achieve climate neutrality, and ensure long-term economic competitiveness in and of Europe at all levels.