14. (How) Can the Energy Transition in Europe be a Just Transition?

In order to ensure that benefits and burdens of the transition to a net-zero economy are shared in a just and balanced way—which is a precondition for accepting the needed changes—effective and inclusive governance structures in both private and public spheres are essential. Given sluggish growth and increasing competition for resources from other policy goals, especially defence, the challenges of achieving a just transition, and with it political acceptance, not to mention political and social stability, will also intensify. We examine four key dimensions of a just energy transition: employment transitions, distributional effects of energy transition, accessibility and affordability of clean energy, and the participation of social partners and stakeholders. Analysis of the EU instruments in place—in particular the Just Transition Fund (JTF) and the nascent Social Climate Fund (SCF)—reveals serious gaps behind large headline numbers. Amongst other issues, JTF disbursement has been very slow. The SCF imposes Just Transition principles on only a small proportion of the revenue to come from the expanded emissions trading scheme, leaving much to the Member States. The chapter closes with policy proposals.