Yahoo Finance The City with the Best Air Quality in Europe
We recently compiled a list of the 25 Cities with the Best Air Quality in Europe and in this article, we will look at the city with the best air quality in Europe.
Air Pollution in Europe
Over the past two decades, air pollution has declined significantly, resulting in improved air quality in Europe. However, it remains the biggest environmental health risk in the region. In 2021, the premature death count reached 253,000 and 52,000 due to increased exposure to fine particulate matter and nitrogen dioxide, according to the European Environment Agency. These pollutants can lead to health complications such as asthma, cardiac arrest, and other heart diseases. Every year, more than 1,200 deaths in people under the age of 18 are estimated to be caused by air pollution in EEA members and collaborating countries.
Although air pollution remains one of the biggest issues in Europe, it still has the cleanest air quality in the world. In 2023, 135 cities in Europe achieved the WHO annual fine particulate matter standard of 5 μg/m³, including every city in Iceland. 30 cities in the UK met the air quality standards, followed by Finland, making them one of the top countries with the cleanest air in the world.
Clean Energy Transition in Europe
The European Union aims to shift towards renewable and low-carbon energy solutions to make the region climate-neutral by 2050 while also improving its economy and reducing pollution. Many companies in Europe are working toward a clean energy transition in the region. One of the major renewable energy companies emerging as a leader in the European energy market is Vestas Wind Systems A/S (OTC:VWDRY). The company has installed more than 177 gigawatts of wind turbines in 88 countries, with its sustainable energy solutions preventing 1.9 billion tonnes³ of CO₂ emissions. The company has over 40 years of experience and was also the first company to achieve the 100 GW milestone for both the installation and service of wind turbines. As of March 2024, it has a wind turbine backlog of 26.6 billion euros and service agreements with a contractual projected revenue of 34.4 billion euros. This makes the total backlog of its wind turbine orders and service agreements 61 billion euros, up 20.3% from the same period in 2023.
On May 29, Vestas Wind Systems A/S (OTC:VWDRY) announced that it is merging its technology, manufacturing, and procurement organization into a single entity, CTOO. The merged organization will utilize the building blocks from the company's global and regional operating model to help streamline its operations and safeguard project execution in 2024. The CTOO will be fully implemented in the third quarter of 2024. The company expects to accelerate the integration of new technologies and manufacturing ramp-up, aligning with its goals of fulfilling the increasing backlog of wind energy projects. The Group president and CEO, Henrik Andersen said that Vestas has built a strong onshore, offshore, and service backlog till the end of the decade. The merged CTOO organization will help the company deliver on its commitments. He further added:
"The united CTOO-organization will help accelerate ramp-up and industrialization across Vestas and the industry by simplifying interfaces, collaboration and strengthening our end-to-end approach. "
Moreover, the company is also deploying a pilot project to reduce its emissions due to the construction of its offshore wind farm. On May 23, the company announced the project that will utilize helicopters powered by a 40% blend of sustainable aviation fuel (SAF) to help transport its workers to and from the wind farm. This also aligns with Europe's vision to utilize SAF in aviation operations. The region introduced the SAF mandate to cater to the emissions from airports and the aviation sector, starting with at least 2% SAF blend in airports by 2025. The region aims to promote sustainable energy alternatives to achieve its 2030 carbon neutrality goals. Hence, utilizing a 40% blend of SAF can significantly minimize CO2 emissions and pave the way for a wider application and adoption of sustainable fuels in aviation and other industries contributing to GHG emissions.
Vestas' (OTC:VWDRY) strong backlog and commitment to innovative sustainable energy alternatives positions it as a strong contender in Europe's clean energy market. The company also returned to profitability in 2023 after experiencing a challenging period due to volatility in the renewable energy market and struggles of wind turbine makers with the supply chain and high cost of raw materials. The move by the company to merge its departments will help streamline its operations and deliver projects effectively. In 2o23, its net income amounted to DKK 574 million, compared to a loss of DKK 11.7 billion in 2022.
The President and CEO of Vestas Wind Systems A/S (OTC:VWDRY), Andersen said:
"Following a very strong finish to 2023, we secured 2.3 GW of orders, while maintaining a strong commercial discipline. As we ramp up to deliver on our growing backlog and deliver across both onshore and offshore, we continue to lead the industry and focus on achieving our financial goals."
Currently, the Danish wind turbine manufacturer is remaining cautious as it navigates challenges including slow permitting processes, inadequate grid infrastructure, and geopolitical tension in the region, leading to continued uncertainty in the market. Regardless, Vestas (OTC:VWDRY) expects to generate revenue of between EUR 16 billion to EUR 18 billion in 2024, and analysts' estimates sit at EUR 17 billion.
While we acknowledge the potential of Vestas to navigate the challenges while maintaining profitability, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now, let's have a look at the 25 cities with the best air quality in Europe. You can also look at 16 Countries with the Cleanest Air in the World.
A wind turbine on a hilltop, surrounded by grass and blue sky.
Methodology
To compile our list of the 25 cities with the best air quality in Europe, we consulted IQ Air's Air Quality Index (AQI). We have ranked the cities in ascending order of their average PM2.5 concentration, as of 2023. Please note that we have also included towns, municipalities, and villages, in the AQI on our list.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
The City with the Best Air Quality in Europe
1. Kuusamo, Finland
Average PM2.5 Concentration (2023): 0.3 μg/m³
Kuusamo is a town and municipality in Finland, located in the Northern Ostrobothnia region. It is home to some of the most popular tourist destinations in Finland. It is ranked 1st on our list of the cities with the best air quality in Europe. Its PM2.5 concentration is 0.3 μg/m³ as of 2023, well below the WHO recommendation of 5 μg/m³. Other pollutants such as O3, PM10, NO2, and SO2 are also under the set limit in Kuusamo.
To learn about other cities with the best air quality in Europe, check out our report on the 25 Cities with the Best Air Quality in Europe.
At Insider Monkey, we delve into a variety of topics; however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. This article is originally published on Insider Monkey.
