“European Governance of the Energy Transition” study from Enel and therefore the European House – Ambrosetti: improve governance to open the way for investments and make sure the achievement of the climate and energy goals by 2030

Positive impact on Gross Domestic Product (GDP) and employment, also as various environmental benefits. Effectively managing the energy transition by improving governance efficiency is an essentialprerequisite not only to make sure the energy system’s sustainability, but also to seize an unmissable opportunity to make value and employment. this is often what emerges from the “European Governance of the Energy Transition” study, administered by the Enel Foundation and therefore the European House – Ambrosetti together with Enel. The study was presented today, within the context of the ecu House – Ambrosetti Forum, during a news conference which saw the participation of Valerio De Molli, Managing Partner & CEO of the ecu House – Ambrosetti, Francesco Starace, CEO and head of Enel and Stefano Manservisi, Professor and Member of the International Independent Task Force on Creative Climate Action, Sciences Po – Paris School for world affairs .

“The EU decision to scale back greenhouse emission emissions by 55%, instead of 40%, by 2030, compared to 1990 levels, amid the recent ‘Fit for 55’ package proposal, confirms that decarbonization is at the core of building the Europe of the longer term ,” said Francesco Starace, CEO and head of Enel. “Bridging the investment gap with approximately 3,600 billion euros needed to succeed in the 2030 target in Europe, of which around 190 billion euros in Italy alone, would have a cumulative impact on GDP of over 8,000 billion euros, of which quite 400 billion euros in Italy alone. However, at the present pace, Europe would only hit the new 2030 target on renewables in 2043, which might be too late and a shame to miss such an excellent opportunity of value creation. it’s therefore necessary to accelerate and equip ourselves with a governance system, which is capable the extent of the challenge and capable of translating intentions into concrete action while leveraging on the big opportunities that stem from this commitment.”

“The time has come for Europe to rapidly implement the energy transition, to seize the chance to revolutionize the perception and management methods of the whole energy sector. This sector has the potential to be the catalyst of a long-term vision for the longer term – potential of which European institutions are fully aware” said Valerio De Molli, Managing Partner and CEO of the ecu House – Ambrosetti. “Europe’s commitment has been confirmed and further corroborated by the recent ‘Fit for 55’ package, which envisages a really ambitious energy transition path for the continent. Europe will need to increase its efforts to implement this alteration because, at this rate, the continent wouldn’t reach the new target of reducing greenhouse emissionemissions by 55% in 2030, but in 2051, which is 21 years late. As for renewable energies, at the present pace, the new 40% target set for 2030 would only be reached in 2043. From the energy efficiency point of view, supported current levels of improvement, Europe will reach +36% in 2053 rather than 2030.”.

Investments within the sectors involved within the energy transition process would generate cascading benefits, both in Europe and in Italy, with important indirect and induced effects. In fact, the study shows that closing these gaps over subsequent 10 years could have a cumulative impact on GDP of over 8,000 billion euros within the European Union and over 400 billion euros in Italy.

Therefore, Europe has an unprecedented opportunity to launch investments in line with the stakes. subsequent Generation EU, a multi-year plan worth 750 billion euros aimed toward creating a more connected, sustainable and resilient Europe, is that the cornerstone of the ecu recovery strategy. Italy is that the main beneficiary of subsequent Generation EU and has involved an Italian National Recovery and Resilience Plan (NRRP) amounting to around 235 billion euros, of which 30% is devoted to the “green revolution” mission.

In the face of this great value creation opportunity and therefore the urgency related to global climate change , the study shows that, at the present pace, Europe would only reach the new target of 55% reduction of greenhouse gases in 2051, with a delay of 21 years compared to the 2030 target. As for the opposite new targets set for renewables (40%) and energy efficiency (+36%), Europe is clearly lagging behind here too, as at the present rate they might be achieved in 2043 and 2053 respectively. In Italy, the NECP has yet to be revised in light of the “Fit for 55” package. The new 2030 goals for Italy are likely to be a 43% reduction in greenhouse emission emissions, a 37.9% contribution from renewable energy and a rise in energy efficiency of 46.4%. In evaluating Italy’s currentperformance in achieving these goals, a mean delay of 29 years emerges, compared to 19 in Europe, with a delay of 24 years for renewable energy.

A rapid change in fact is therefore necessary, one which puts Europe during a position to form the investments necessary to catch up on the delay accumulated over the years and accelerate value creation. so as to unlock necessary investments it’s essential to beat the present barriers to energytransition governance. The study analyzes the currentgovernance structure, defined because the set of roles, rules, procedures and tools (at the legislative, implementation and control level) concerning the energy transition management, and aimed toward achieving strategic also as operational objectives. The study showsthat there are three main issues with energy transition governance in Europe. Firstly, energy may be a shared competence between Member States and therefore the EU, then, there’s a growing got to implement a replacement “indirect”enforcement system and eventually , it’s necessary to strengthen the newmechanism for managing green objectives. In Italy, energy transition governanceeffectiveness is restricted by five factors, namely fragmented responsibilities among the varied stakeholders at different levels, non-uniformlocal regulations and native application of national regulations, weak involvement and commitment of institutions and native communities eroding social acceptability, related inefficiencies within the role of technical-administrative public bodies and fragmented drafting of sectoral policies.