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6. Tackling the Drawbacks of Past and Current EU Energy Transition Policies: The Need for a Cooperative, Mission-oriented Industrial Strategy

  • Francesco Gracceva(author)
  • Daniela Palma(author)
Chapter of: More with More: Investing in the Energy Transition: 2025 European Public Investment Outlook(pp. 93–114)
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Title6. Tackling the Drawbacks of Past and Current EU Energy Transition Policies
SubtitleThe Need for a Cooperative, Mission-oriented Industrial Strategy
ContributorFrancesco Gracceva(author)
Daniela Palma(author)
DOIhttps://doi.org/10.11647/obp.0499.06
Landing pagehttps://www.openbookpublishers.com/books/10.11647/obp.0499/chapters/10.11647/obp.0499.06
Licensehttps://creativecommons.org/licenses/by-nc/4.0/
CopyrightFrancesco Gracceva; Daniela Palma
PublisherOpen Book Publishers
Published on2025-12-08
Long abstract

This chapter examines the main challenges of the EU’s energy transition. It first provides a comprehensive assessment of the EU’s performance against the objectives of the Energy Union, the EU’s most explicit attempt to address the so-called energy trilemma. Based on a set of indicators, structured around the five dimensions of the Energy Union, the analysis shows that the EU’s energy system is today in a weaker position than ten or even five years ago. The chapter then evaluates whether the EU’s current strategy can serve as an effective development policy, capable of revitalizing the European economy and contributing to global decarbonization. The growing emphasis on strategic autonomy—amid rising geopolitical tensions—reflects a view of global interdependence as conflictual rather than cooperative. This inward-looking stance risks undermining the international cooperation essential for a successful energy transition, while the narrow solution space of the energy trilemma is further constrained by Rodrik’s new climate trilemma. It also reflects what Krugman termed the “competitiveness obsession”, overlooking trade-offs between domestic production and economic efficiency, and failing to address Europe’s industrial weaknesses. As an alternative, the chapter advances a “cooperative mission-oriented” strategy: a new model of productive globalization based on collaboration rather than competition. Its dual objectives are to reduce global inequality and combat climate change, through industrial policies that promote innovation without resorting to protectionism, and through international cooperation that can foster the global development of green technologies and services and expand the clean economy. Such a strategy could improve allocative efficiency while ensuring Europe secures a fair share of the benefits.

Page rangepp. 93–114
Print length22 pages
LanguageEnglish (Original)
Locations
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PDFhttps://www.openbookpublishers.com/books/10.11647/obp.0499/chapters/10.11647/obp.0499.06Landing pagehttps://books.openbookpublishers.com/10.11647/obp.0499.06.pdfFull text URL
HTMLhttps://www.openbookpublishers.com/books/10.11647/obp.0499/chapters/10.11647/obp.0499.06Landing pagehttps://books.openbookpublishers.com/10.11647/obp.0499/ch6.xhtmlFull text URLPublisher Website
Contributors

Francesco Gracceva

(author)
Head of Analysis and Scenarios at Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile
https://orcid.org/0009-0004-2480-9434

Francesco Gracceva is Head of the Analysis and Scenarios of the Energy and Economic System Section at ENEA (the Italian National Agency for New Technologies, Energy and Sustainable Economic Development). He has over twenty years of experience in energy market analysis and in the development of models and scenarios for the energy system, both for research purposes and in support of decision-makers. He served as a National Expert seconded to the Energy Security Unit of the Joint Research Centre (JRC) of the European Commission. Since 2016 he has been responsible for the publication ENEA Quarterly Analysis of the Italian Energy System. He is the author of approximately one hundred publications on energy-related topics.

Daniela Palma

(author)
Research Director at Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile
https://orcid.org/0009-0003-3654-4237

Daniela Palma is a Research Director at ENEA (the Italian National Agency for New Technologies, Energy and Sustainable Economic Development), in the field of Innovation Economics and Sustainable Development. She holds a PhD in Applied Economic Analysis from Sapienza University of Rome. She was a Visiting Research Fellow at the National Center for Geographic Information and Analysis (NCGIA) of the United States National Science Foundation, hosted by the University of California, Santa Barbara. She has coordinated the activities of the ENEA Observatory focused on Italy in the context of International Technological Competition.

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