The energy transition is not only about sustainability, but also about security. The war ratified the policy and you can see that again now.
Green Deal
Even if you zoom in on energy and climate policy, which Emma Leenders is researching, there is no crisis. ‘We already wanted renewable energy. The unpredictability of the United States confirms once again that we need to go down this path with our own resources in order to be less dependent.’ In 2019, the European Green Deal opted for this direction, setting ambitious targets for reducing emissions by 2030 and 2050. 'The invasion of Ukraine in 2022 has already allowed the EU to reframe policy,' Leenders says. ''
De-industrialisation
But there is another side to it. Last year, ahead of the European elections, climate and energy policy was downplayed in some parts. The popular mood was that the transition was going too fast and that there was de-industrialization. Smeets: 'Diederik Samsom was involved in setting up the policy. In a column in De Volkskrant, he admitted that too little thought had been given to the disappearance of existing industry that we still desperately need, such as steel. 'With that, you can actually make yourself more dependent.' The European Commission is now considering a more flexible but also less ambitious climate target for 2040. 'That means that between 2040 and 2050 we will suddenly have to do a lot more to reduce emissions,' says Leenders.
Subsidies and pricing
The United States takes a very different approach to climate and energy policy. With the Inflation Reduction Act, Biden came up with his own kind of Green Deal in 2022, stimulating domestic investment with subsidies. 'In Europe, on the other hand, people are very proud of the emissions trading system, where the polluter pays,' says Leenders. 'This has been in place for about 20 years and is becoming increasingly strict. Companies buy allowances to emit. The number of allowances is decreasing, so companies have to reduce their emissions.' A major problem is that energy prices in Europe are higher than in the United States anyway, Smeets observes. 'And then a subsidy package like this comes on top of that. But it can also be positive. 'Companies suffer at least as much from uncertainty as from higher prices.'