Accelerating the EU’s green transition
The EU’s ambitious Green Deal aims at achieving net zero emissions by 2050. The EU
is starting from a relatively good position. It has successfully reduced greenhouse
gas emissions over the past decade. But further efforts are needed to reach the net
zero target. These include an extension of emission trading to agriculture and the
phase-out of generous subsidies for fossil fuels. Such efforts should be complemented
by additional measures to shift to clean energy, notably more integrated electricity
markets and deeper capital markets that provide the necessary investment in new technologies.
Accelerating the green transition will also involve costs for displaced workers. Bolstering
workers’ mobility and training will help improve labour reallocation and reduce transition
costs.
Published on November 20, 2023
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