As an element in the current fight against climate change, the EU commitment in regard to decarbonisation of the economy by 2050 forms the basis for an energy transition process that has now become reality, with consequential structural changes in the energy system that will have profound implications for society and the economy.

Over the coming years, member States and their regions will be required to define a vision and roadmap towards attaining a climate neutral economy by 2050. Accordingly, public administrations in the EU will need to reach numerous decisions in relation to decarbonisation, with long-lasting consequences that will go beyond the energy context as such.

Accordingly, it is increasingly necessary to explore ways to transform the energy system which, in addition to taking into account the idiosyncrasies of each geographic environment in terms of economic structure, housing stock, mobility, climate, natural resources, etc., will also need to guarantee social fairness for a just, sustainable transition and contribute to modernising industry However, at regional and local level there is a notable scarcity of detailed tools to guide policymakers in assessing the potential effects of strategies and policies.

While there are commercial energy planning tools on offer, defining a decarbonisation roadmap in an efficient, integrated manner will require a holistic approach, grounded in scientific evidence and combining multiple analyses (technical, cost, environmental, social and economic, etc.), and taking into account the direct, indirect and induced effects on the environment, society and the economy. As no single tool is capable of such a complex assessment, it will be necessary to integrate several models to give us an overall vision of the system. No such integration has, as yet, taken place for the issues and scope at stake.

Basque context: the importance of industry

One key economic sector which the European Commission defines as being difficult to decarbonise is industry. In the Basque Country, where the industrial sector plays a massive role in the economy, this issue is of even greater importance. Additionally, the energy-intensity of its industries makes the region a greenhouse gas emission hotspot.

Facing up to the challenge of decarbonising Basque industry will require a disaggregated characterisation of the sector, to identify the best technological and investment strategies and business models, based on the circular economy.

Circular economy and LCA

Prospective energy sustainability scenarios are not usually analysed from a circular economy perspective, with regard to the sustainability analysis of the different potential scenarios. In a market where sustainable product sourcing is becoming increasingly important, applying a Circular Economy and Life Cycle Analysis (LCA) perspective adds greater differentiating value to decision-making support tools.