Manufacturing, being responsible for a lot of the carbon emissions, can actually make an impact to reach climate goals. To ensure that Europe can meet the international commitments made in the Paris Agreement, fossil fuels used in manufacturing need to be replaced with renewable energy, but at the same time we need to be more efficient and smart. Electrification of the manufacturing process could be an enabler for decarbonisation and ultimately support the transformation to fossil-free factories.

Green hydrogen can play a major role in reaching net-zero targets, particularly in sectors such as steel and chemical production. The demand for green hydrogen is expected to grow, but it needs to narrow the efficiency gap and address its cost-effectiveness to be competitive with direct electrification and really become an energy solution for a greener future.

Future manufacturers will need to prepare for more decentralisation. With the rise of renewable energy, there is a growing need for flexibility in the energy system, opening up for new opportunities of decentralised energy structures. Use cases with peer-to-peer energy trading and micro-grids are just two examples of how blockchain technology can fuel the decentralisation of the energy system.

Furthermore, as we continue down the road of electrification, security concerns will matter much more than they do today. To increase energy resilience, electricity is going to be best organised nationally or in blocks, like within the European Union, according to professor Helen Thompson from the University of Cambridge.

The green-tech revolution will reduce our dependence on nuclear power, coal, and oil, heralding a new era free of pollution and fossil-fuel shortages. Yet the currently known global mineral reserves will not be sufficient to supply enough metals to manufacture the planned non-fossil fuel industrial system”, suggests a 2021 GTK (Geological Survey of Finland) research report. That means that our transition from fossil fuels to a green future comes with a new dependence on rare metals with a risk of shortages. We can see that China, Vietnam, and Russia now hold the largest REE (rare earth elements) reserves needed for green energy. And therefore, critical material scarcity could threaten a renewable energy future. Understanding this context can trigger new developments to be more efficient with the scarce resources we have and strengthen the security with respect to rare earth materials.

As a result of these described developments, Europe may increasingly focus on local and domestic production and sourcing. Another possibility could be that mines will be (re)-opened and metal extraction will start again on the continent. Ultimately, Europe needs to plan for actions to diversify sustainable material sourcing to not be dependent on only currently known mineral reserves.