In the EU, there is an ambitious roadmap to reach net zero by 2050. With annual additions of solar and wind power reaching 630 and 390 gigawatts respectively by 2030, the IEA said that investment in renewables could put global GDP 4% higher by 2050 than it would be based on current trends. By 2050, it said that renewables' capacity and greater efficiency would see global energy demand drop about 8% compared to today, even as two billion more people gained access to electricity.
Everyone acknowledges that an active green industry also creates jobs, makes electric grids more resilient, expands energy access in developing countries, and helps lower energy bills. All these factors have not yet fully integrated into a renewable energy dream taking root in Malta. Citizens were given hope as many studies were commissioned over the decade, only to have whetted an appetite for low carbon emissions. Regrettably, the spirit was willing, but the body was weak.
In 2019, Malta was at the bottom of the table in terms of the share of electricity coming from renewable energy (now we reached circa 13%). Eurostat reveals others generated an average of 34%. At the lower end of the scale in 2024, Malta reached 10.7%, compared to Cyprus: 24.1%, Hungary: 24.1%, and Luxembourg: 20.5%. For 2025, the EU-wide share rose to around 47.2- 47.3% of electricity generation. Malta's share increased to 16.2%, but it was still among the lowest in the EU, alongside Czechia and Slovakia. Cyprus ranked among the fifth-lowest performers in 2025, though it saw strong growth in solar, helping the island generate more than 20% of its electricity, like Hungary.
Regrettably, like us, Cyprus suffered from power cuts (notably load shedding or outages) in villages over the past three summers. Cyprus has faced recurring summer electricity shortages due to high demand for cooling resulting from recent extreme heatwaves. Other problems (not unlike Malta) include little redundancy in grid capacity and infrastructure. Installing rooftop solar with batteries can help households become more self-sufficient, yet these are expensive and do not eliminate blackouts in peak season. Not unlike Malta, it has ageing networks which struggle with peaks, especially in rural and village areas with older lines. Official reports state how significant solar potential is wasted due to grid constraints and a lack of storage and batteries.
The ambitious plan for the EU is to become the world's first climate-neutral continent by 2050 - an admirable objective behind the European Green Deal. Remember how Donald Trump had ridiculed "climate change" and walked out of the Paris Agreement signed in 2015. Many recall reading how, in the past, scientists believed that limiting global warming to two degrees Celsius above mid-19th century levels would be enough to safeguard our future. This target was enshrined in the 2015 Paris Agreement, adopted by nearly 200 nations who vowed to collectively cap warming at "well below" two degrees Celsius - and 1.5 degrees if possible.
Stark reality shows that, when analysing current trends, the target seems to be heading for three degrees Celsius at best. Simply put, this will fundamentally reshape life on Earth in the coming decades, even if humans can tame planet-warming greenhouse gas emissions, according to a landmark draft report.
Many studies show how renewables can be an effective solution to reach carbon neutrality. Renewables could supply four-fifths of the world's electricity by 2050, generate hydrogen from the sea via electrolysis, massively cut carbon emissions, and help mitigate climate change. But solar and wind power have to be fully integrated with sustainable bioenergy, hydrogen fuel cells (apart from the innovative use of ammonia as a fuel), and investment in storage facilities. This is also linked to reducing drivers of emissions and solid policies enabling a cleaner environment. In simple terms, the planet needs to start taking collective action to promote renewable energy before it is too late.
How is Malta faring in this quest? One cannot omit to comment on the extensive blackouts experienced in the past three years. This has angered consumers, visitors, including hotels, factories, restaurants, and industry managers, who had to send staff home. MHRA asserts that it hurt the tourist business, while in some cases many kitchens threw away tons of refrigerated stock. Most will agree that a constant supply of power is a prerequisite for a healthy and flourishing economy, now with an unprecedented rise in population.
Back on net zero, the importance of fighting climate change and reducing our carbon footprints are both essential if we are to achieve the set EU standards by 2050.
In the local insurance sector, Mapfre is committed to steadily and consistently strengthening the drive towards sustainability, with concrete objectives that contribute to reducing the greenhouse gas emissions of the multinational's insurance and reinsurance portfolio and thus enable the company to reach a sustainable transition. Mapfre has promised to transition its investment portfolios' net greenhouse gas (GHG) emissions and become a net-zero (NZ) company by 2050. The insurance group joined the Net Zero Asset Owner Alliance in its Sustainability Plan 2022-2024, with which it aims to make progress on strategic objectives such as rating 90% of its investment portfolio with ESG criteria at the global level, as well as neutralising the company's carbon footprint by 2030. Mapfre is not investing in or insuring carbon, gas, or oil companies that do not have an energy transition plan. These targets reflect the company's ambition to take an active role in the necessary and urgent transformation towards a low-carbon economy.
Hydrogen fuel technology has increasingly become a prominent topic of interest. Some criticise that the EU Green strategy is not as revolutionary as it may seem when it concerns hydrogen, as only lip service was paid to reducing the use of fossil fuels (perhaps due to a turbulent energy market upset by oil tankers seized in the Strait of Hormuz). Without any doubt, apart from nuclear power, green hydrogen is another clean option for the decarbonisation of the energy system.
In conclusion, hydrogen cannot be regarded as a panacea for future energy needs through its use in fuel cells. There exist challenges in translating this revolutionary concept into a commercial reality, but Malta has now secured EU funding for a future gas pipeline to Italy which can be hydrogen-ready.
George M. Mangion is a senior partner at PKF Malta