The making of a just energy transition: Commissioner Kadri Simson on Net Zero (Part II)

In this episode, EU Energy Commissioner Kadri Simson discusses the energy taxation policy in EU and the challenges behind a just transition with Joana Freitas, Ambassador for the FSR Lights on Women initiative. To achieve the level of ambition that is proposed in the Green Deal, the EU needs to set an effective carbon pricing policy. However, as Commissioner Simson notes, in some European countries, there are still some inconsistencies in the energy taxation system – there are cases in which taxation is more favorable to fossil fuels than to renewables. One of the most disruptive measures proposed in the EU Green Deal is the creation of a Carbon Border Tax. As some segments of the population and some regions are particularly affected by this green transition, political initiatives, as the Just Transition Mechanism, play an important role in funding the transition and bringing the entire society on-board. Despite different starting points, the Just Transition Mechanism will be available to support all the Member States. “All around Europe we have factories that are losing their market share because of the technological solutions they are using”. Given the amount of investment required, national governments and the private sector will also have to contribute. In the Commissioner's view, national governments should develop their own financing mechanisms as the “Green Deal is not only about protecting our environment, but is also a growth strategy”.