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Priorities and challenges of the EU energy transition: From the European Green Package to the new Green Deal

Author

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  • Manfred Hafner

    (Fondazione Eni Enrico Mattei , Milan, Italy
    Johns Hopkins University SAIS Europe, Bologna, Italy
    Science Po Paris School of International Affairs, Paris, France)

  • Pier Paolo Raimondi

    (Fondazione Eni Enrico Mattei, Milan, Italy)

Abstract

As decarbonization and climate policy are gaining relevance in the European Union (EU) energy policy, the present paper seeks to present both priorities and challenges for of the EU energy transition. As priorities, we outline the key targets and initiatives proposed and set by the European institutions in relation to the energy matters. The EU identifies renewable energy sources, energy efficiency and reduction of the greenhouse gas (GHG) as the three pillars to achieve its carbon neutrality. The final goal for to the EU energy and climate targets is to achieve climate neutrality by 2050. Nevertheless, since given energy policy is being a "shared competence" between the EU institutions and Member States, each Member State plays a critical role for the achievement of the EU energy transition. Different socioeconomic structures and the energy mix across Europe have caused the implementation process of each EU target to develop at a different pace among European countries. We illustrate this drawing on four countries: Italy, the UK, Germany and Poland. We assess their political commitment to the energy transition and their actions regarding energy transformation. These four countries are only an example of the different pace in the implementation of the EU energy and climate targets. The last part of the paper is devoted to the ambitious plan, called Green New Deal, launched by the present Commission President, Ursula von der Leyen. It sets key priorities, reaffirming European commitments to the energy and climate transition. However, the plan faces significant obstacles. For example, division among Member States (North-South and West-East) might be a factor that could undermine the achievement of the European energy transition, due to multiple and divergent interests (also on the future role of the energy transition in the aftermath of COVID-19 and the resulting economic crisis). Another challenge is constituted by popular opposition, especially from those people that see the energy transition — and consequent economic and industrial transformation — as a potential threat to their well-being and jobs, as the French gilets jaunes show. Lastly, we explain that the European energy transition will impact also its external relations, for example with Russia, proposing how the two blocs can preserve their energy relationship in light of the energy transition, notably through the conversion of natural gas to hydrogen and storing/using the resulting CO2.

Suggested Citation

  • Manfred Hafner & Pier Paolo Raimondi, 2020. "Priorities and challenges of the EU energy transition: From the European Green Package to the new Green Deal," Russian Journal of Economics, ARPHA Platform, vol. 6(4), pages 374-389, December.
  • Handle: RePEc:arh:jrujec:v:6:y:2020:i:4:p:374-389
    DOI: 10.32609/j.ruje.6.55375
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    References listed on IDEAS

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    1. Andris Piebalgs, 2006. "Green paper: A European strategy for sustainable, competitive and secure energy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 7(02), pages 8-20, July.
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    Cited by:

    1. Filipović, Sanja & Lior, Noam & Radovanović, Mirjana, 2022. "The green deal – just transition and sustainable development goals Nexus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    2. Dalia Streimikiene, 2022. "Analysis of the Main Drivers of GHG Emissions in Visegrad Countries: Kaya Identity Approach," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 16(4), December.
    3. Elizaveta S. Sokolova & Olga V. Panina & Natalia L. Krasyukova & Nikolay P. Kushchev, 2022. "Armenian Energy System Development: The Prospects of EAEU Single Energy Market," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 258-265.
    4. Dorota Miłek & Paulina Nowak & Jolanta Latosińska, 2022. "The Development of Renewable Energy Sources in the European Union in the Light of the European Green Deal," Energies, MDPI, vol. 15(15), pages 1-17, August.
    5. Tomasz P. Wiśniewski, 2023. "Investigating Divergent Energy Policy Fundamentals: Warfare Assessment of Past Dependence on Russian Energy Raw Materials in Europe," Energies, MDPI, vol. 16(4), pages 1-13, February.
    6. Bożena Gajdzik & Magdalena Jaciow & Kinga Hoffmann-Burdzińska & Robert Wolny & Radosław Wolniak & Wiesław Wes Grebski, 2024. "Impact of Economic Awareness on Sustainable Energy Consumption: Results of Research in a Segment of Polish Households," Energies, MDPI, vol. 17(11), pages 1-31, May.
    7. Ryo Kohsaka & Satomi Kohyama, 2023. "Contested renewable energy sites due to landscape and socio-ecological barriers: Comparison of wind and solar power installation cases in Japan," Energy & Environment, , vol. 34(7), pages 2619-2641, November.
    8. Paul Calanter, 2023. "Assessing the Energy State of the EU under Green Deal Objectives," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 11(1), pages 16-23, May.
    9. Phoebe Koundouri & Angelos Alamanos & Angelos Plataniotis & Charalampos Stavridis & Konstantinos Perifanos & Stathis Devves, 2024. "Assessing the sustainability of the European Green Deal and its interlinkages with the SDGs," DEOS Working Papers 2405, Athens University of Economics and Business.
    10. Vasile Dinu & Leonina Emilia Baciu & Maria Mortan & Vincentiu Andrei Veres, 2023. "Effect of Economic, Institutional and Cultural Factors on the Implementation of EU Energy Policies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(63), pages 306-306, April.
    11. Makpal Zholamanova & Nurbakhyt Nurmukhametov & Mikhail Tolmachev & Kassymkhan Sarsen & Altyn Amerkhanova, 2023. "Comparative Analysis of Strategies for Innovative Development of the Fuel and Energy Complex: The Experience of the EU Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 128-134, January.
    12. Vlad NERĂU, 2021. "Romania’s coal-fired power plants efficiency and pollution in the context of the European green deal," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(626), S), pages 117-134, Spring.
    13. Tomasz L. Nawrocki & Danuta Szwajca, 2021. "A Multidimensional Comparative Analysis of Involvement in CSR Activities of Energy Companies in the Context of Sustainable Development Challenges: Evidence from Poland," Energies, MDPI, vol. 14(15), pages 1-19, July.
    14. Muhammad Amir Raza & Muhammad Mohsin Aman & Altaf Hussain Rajpar & Mohamed Bashir Ali Bashir & Touqeer Ahmed Jumani, 2022. "Towards Achieving 100% Renewable Energy Supply for Sustainable Climate Change in Pakistan," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    15. İnayet Özge Aksu & Tuğçe Demirdelen, 2022. "The New Prediction Methodology for CO 2 Emission to Ensure Energy Sustainability with the Hybrid Artificial Neural Network Approach," Sustainability, MDPI, vol. 14(23), pages 1-29, November.

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    More about this item

    Keywords

    European Union energy policy climate policy decarbonization energy transition;

    JEL classification:

    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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