Just Transition

Something sounds awry about the term ‘twin transition’. The concept, often used in EU or UN contexts, ties two crucial transitions: the move to renewable energy and the digitalisation of economies. While it sounds forward thinking, evidence suggests this pairing may be less beneficial than promised. As developing countries bear the socio-environmental costs while reaping limited benefits, a handful of tech giants continue to dominate global markets. Paz Peña raises a crucial question: is this ‘transition’ truly a path to equity, or does it deepen old divides under the guise of green progress?

The green technologies needed to rapidly cut our greenhouse gas emissions are already on the market. What’s more, they are, or very soon will be, cost effective. In other words, from the perspective of the household, it is, overall, cheaper to go green. However, there’s a catch: access to capital is king in the household energy transition. 

The climate emergency is the number one policy priority, requiring a fundamental overhaul of our economic system. During the Val Duchesse Social Partner meeting, the European Commission announced the creation of a Social Dialogue envoy. However, the roles of social dialogue and collective bargaining remain underappreciated, and the European Institutions need to focus on strengthening the role of trade unions in shaping the just transition throughout the next legislature.

In Illinois, a fossil fuel-funded group is infiltrating schools, promoting oil careers to kids. But in a state going green, advocates say they're selling students a false future. An investigation into the industry's pipeline to the classroom.

The Social Guarantee refocuses progressive politics on human relations, on how we care for each other, and on the importance of investing in the social infrastructure on which the rest of the economy depends. It draws on current thinking about the foundational economy, the care economy, and sustainable economic prosperity It offers a coherent, ethical, and well-evidenced basis from which to address such issues as investment, regulation, and carbon mitigation.

This paper has argued that an active industrial policy that is context appropriate, coherent, and adaptable can be utilised to address this challenge. Nevertheless, one must acknowledge that the necessary green transition on the EU level comes with transition costs, challenges, and opportunities that affect distinct people, firms, and countries very differently, and hence bears the threat of rising inequalities, both within and among countries. Central to the success of a green transition is, therefore, the EU’s adequate reaction to this fact. This reaction can then enable and facilitate a green transformation that really leaves no one behind.

A green transformation of the economy will require a major commitment to green investment to reduce and respond to environmental degradation. The main objective of this paper is to explore the macroeconomic implications of green investment in the transformation to a green economy.