Framework conditions for a successful energy transition & a competitive carbon-neutral EU economy
On 23 March 2023, the independent tripartite High Level Group on Financing Sustainability Transition chaired by Mr Pier Carlo Padoan continued to ‘think outside-the-box’ on the necessary framework conditions to finance the transition in Europe. They expressed comments and recommendations on:
Industrial transition and competitiveness reforms, i.e. how to ensure that decarbonisation investments in Europe remain financially attractive and viable in the long-term, while stimulating innovation and market uptake in Europe of new technologies;
Economic governance reforms, i.e. the necessary shift towards a more risk-based, country-specific approach in EU economic governance rules, reflecting the weight of climate-related financial risks in public finances;
Energy market reforms, i.e. the need for further demand-side measures to improve flexibility, and therefore to alleviate the overall energy demand, hence increasing European resilience, while still thinking on a possible deeper reform of the electricity market design in the long-term.
Recommendations are outlined for the attention of the European Commission, the European Council and the Council of the EU for their ongoing and future policy initiatives.