The EU’s executive body has published a study which shows that there is now clear incentive to make strong investments into the renewable energy sector based on competitiveness.  According to the study, reaching the 2020 renewable energy target could lead to 2.8 million new jobs contributing up to around 1.1% GDP to the EU budget in the renewable energy sector.

Previously, arguments in favour of greater investment into renewable technology have centred around the need to reduce greenhouse gas emissions in particular, and also the desire to reduce the EU’s dependence on imported fuel. However the European Commission believes this now demonstrates the re is an economic incentive for turning to such alternative energy sources and that stronger policies need now be implemented at EU level in support of such technologies to gain the maximum economic benefit.

In addition to the benefits the renewable energy sector will experience as a result of greater investment, the wider economy would also be expected to profit. The Commission predicts that investment could generate up to 410,000 additional jobs and a GDP growth of 0.24% in EU Member-States by 2020.

Energy Commissioner Andris Piebalgs stated after the release of the report that he believed ‘This shows that benefits of renewables in terms of security of supply and fighting climate change can go hand-in-hand with economic benefits’.

Efforts must now be stepped up to support the sector the study concludes, stating that if it continued on a ‘business-as-usual’ scenario, renewables would only provide 14% of total energy supply by 2020 rather than the 20% intended target.