Fortifying Public Involvement in the EU's Energy Redesign

Fortifying Public Involvement in the EU's Energy Redesign - a Collection of Strategies

In a bid to strengthen governance and ensure a fair and inclusive energy transition, several tools are being assessed by the Knowledge Community of the Green European Foundation and Heinrich-Boll-Stiftung EU. These tools aim to bring clean and affordable energy to more citizens quickly.

One of the tools under consideration is fair and green retail electricity tariffs, which could help households and businesses reduce their energy bills. Another tool is the utilisation of Green Mortgage Portfolio Standards, Green Bonds, or guarantee funds, when coupled with new EU legislation, to finance renovation measures while remaining cost-neutral for tenants.

Accelerating the deployment of solar and wind capacities has a price-dampening effect on wholesale electricity markets. However, this benefit may not always be passed on to households, highlighting the need for innovative solutions. Rising block tariffs can incentivize consumers to shift their consumption to those hours when cheap renewable electricity is abundant, further reducing energy costs.

The EU's just transition policy framework includes the Just Transition Mechanism, the Social Climate Fund, and the Council Recommendation of June 2022. These initiatives aim to ensure a fair transition towards climate neutrality, addressing the concerns of those who may be adversely affected by the shift away from fossil fuels.

European budgetary and cohesion policies are being adapted to provide more tailored and stable funding to local authorities, enabling them to become effective tools for increased participation in the EU's energy transition. Strong municipalities are key in providing plans, permits, and advice to ensure investment security for the energy transition.

Despite the increasing share of renewables in the EU's energy consumption, high energy bills persist. This paradox underscores the need for comprehensive strategies that not only promote renewable energy but also address the affordability issues faced by households and businesses.

Energy savings and efficiency measures have significant untapped potential. By autumn 2024, the Knowledge Community will collaboratively develop five short political briefs discussing the potential of each single tool in view of a strengthened, more inclusive, and fair participation in the EU's energy transition.

The climate crisis and the EU's dependence on fossil fuel imports caused price hikes in 2021. Fossil fuel subsidies reached €123 billion in 2022, representing a significant budgetary cost for the EU and its Member States. The EU cannot afford fossil fuels from both an environmental and economic perspective.

Renewable electricity is the cleanest and cheapest source of energy. Energy sharing allows citizens to self-consume renewable electricity remotely without becoming an owner, with excess renewable electricity passed on from neighbours, local energy communities, municipalities, or small companies. This approach not only reduces energy costs but also promotes a sense of community and shared responsibility in the energy transition.

However, the energy transition is not without its challenges. Not all households and businesses can afford the upfront costs to reduce their energy consumption. Furthermore, the high social acceptance of the energy transition among EU citizens is being undermined by contradictions. Brand new EU policy initiatives are initiating new ways of engaging citizens in the energy transition, aiming to address these challenges and ensure a smooth and fair transition towards a carbon-neutral future.

In the face of opposition from far-right and populist parties, it is more important than ever to continue the push for a fair and inclusive energy transition. The benefits of renewable energy – lower costs, energy security, and a healthier environment – far outweigh the challenges, and the EU must continue to lead the way in this transition.

Fortifying Public Involvement in the EU's Energy Redesign - a Collection of Strategies