Staying on course with the European energy transition

Europe is in the midst of an intellectual ferment. The challenges are concrete, urgent and massive. The war in Ukraine has heralded the beginning of a new energy era, which requires an accelerated transition to a low-carbon energy system, but also reveals new vulnerabilities. Will tomorrow’s electric batteries and wind turbines be manufactured in Europe? How can we ensure the security of supply of materials that are critical to the transition, when these currently come from a very small number of countries, particularly China? How can we bridge the green investment gap, estimated at around 2% of European GDP over the next decade?

The EU already has many victories to its credit. The term of office that is coming to an end, which began in 2019, saw the launch of the Green Deal and the strengthening of European climate ambitions. The EU has successfully revised its regulatory framework on energy and climate (the ‘Fit for 55’ package), launched a European recovery plan, ‘Next Generation EU’, in response to Covid, and adopted laws to support its new green industrial ambitions.

In terms of energy and climate, the challenge for the next European institutional cycle, which will begin after the European elections in June, is twofold. It will involve implementing the new measures. It will also be necessary to continue the effort to align the European regulatory framework with the goal of climate neutrality, for example in the circular economy (recycling industry, eco-design of products, etc.).

Ambitions have never been higher. Doubling the pace of renewable energy deployment, accelerating renovation, deploying new European value chains that are as sustainable as possible for green technologies, from the mine to the factory. Beyond the climate issue, achieving these objectives is now a matter of sovereignty and future prosperity.

The question that arises is that of Europe’s place in tomorrow’s world. Missing the electric car revolution means depriving the continent of green jobs, leaving technological leadership to others, and missing the opportunity to impose high sustainability standards on electric batteries.

However, the EU is currently not equipped to realise these ambitions in a difficult geopolitical and economic context. This is a cause for concern for businesses, think tanks, consumer associations, social partners and the European institutions themselves, foremost among them the European Commission. The issue of financing has not been resolved, technical skills are insufficient, there is a real shortage of skilled labour, and administrative processes lack agility. There is no shortage of solutions, but they require Member States to agree on a common vision leading to joint and coordinated action to address these challenges. The report by Enrico Letta (former Italian Prime Minister and President of the Jacques Delors Institute) on the single market, published last week, echoes these concerns and outlines possible reforms.

Last week’s Council conclusions are disappointing in this regard and out of step with these calls for action. However, depending on the results of the June elections and the Council’s strategic agenda to be adopted that same month, the Commission will have a more or less clear mandate to stay the course of the energy transition and equip the EU with the instruments to match its ambitions. There is still some hope for Europe’s green agenda. This is an opportunity that must not be missed.