Renewable Energy Sources in Sustainable Growth

Introduction

In recent years, environmental and climate change have been presented as a serious challenge for the world. A low-carbon transition has been promoted as the only solution for long-term, sustainable economic growth. This means reducing greenhouse gas emissions from all human activities in order to minimise the negative impact on the environment and preserve nature for the next generation. The transition aims to move away from carbon-intensive and fossil fuel-centred energy sources such as coal, oil, and natural gas to clean energy sources with less harmful effects on the environment and society. The world as it is known today is expected to change within two decades. Following the adoption of the Paris Agreement in 2015, the world has committed to making progress on climate action. The main goals are to limit the rise in temperature to 1.5 degrees Celsius and reduce greenhouse gas emissions. Therefore, the European Union has set out a comprehensive and ambitious strategy with the European Green Deal, which aims to transform the European economy into a sustainable, competitive, and environmentally friendly economy. Firstly, the low-carbon transition requires the inclusion of renewable energy sources such as wind, solar, hydro, geothermal and biomass in all sectors of the economy. In addition, traditional industries need to be transformed by introducing more sophisticated business solutions and practises. Increasing energy efficiency and developing the electricity grid infrastructure are crucial to the process of electrification as one of the key elements of the low-carbon transition. Significant investment is needed to develop new, energy-efficient, and competitive technologies that would support low-carbon development. Solutions for industry are seen in the introduction of more sustainable production processes and carbon capture and storage technologies. However, a complete and efficient transition is only possible with the support of the government and the legal framework that provides policies and regulations at local, national, and supranational levels. These regulations and laws must create a favourable environment for investment, provide financial support for households and businesses to adopt renewable energy systems and set clear standards for greenhouse gas emissions.

The motivation for this research lies in challenging and rapidly changing times that have significant implications for economic development. Current legislation and development strategies are largely based on the paradigm of sustainable growth, which requires significant and structural changes. This definitely has an impact on familiar business practises and people’s habits and routines. Therefore, aim of research is to determine the impact of low carbon factors on sustainable economic growth. Sustainability can be only achieved with serious actions in environmental protection and energy efficiency and security. This implies the use of renewable energy, new infrastructure, and increased energy efficiency.

The research is organized as follows. After the introduction that introduces the topic and explains motivation and aims of the research, Section 2 discusses about the importance of low carbon transition and its economic, environmental, and social imperatives that will drive towards sustainable energy sources. Furthermore, Section 3 will provide data on use of renewable energy sources in European Union with reference to energy efficiency. Section 4 explains data and methodology used in research. Section 5 elaborates the results obtained in research and discusses the potential impact on households and business. Gives and overview on current policies and addresses the challenges and opportunities within low carbon transition in aspect of innovations, economic growth, and job creation. Conclusion summarizes the research results and its contribution to research topic.