Ambrosetti Forum: a common governance for the energy transition

Managing the energy transition effectively is an essential prerequisite, not only for ensuring the sustainability of the energy system, but also for seizing a precious opportunity to create value and jobs. In order to mobilize investments and rapidly achieve Europe’s ambitious decarbonization targets it is, however, necessary to overcome the current obstacles in the governance of the energy transition, which can be defined as the set of roles, regulations, procedures and tools aimed at achieving strategic and operational targets.

This was revealed in the study on European Governance of the Energy Transition which we produced together with the Enel Foundation and The European House – Ambrosetti and presented on September 4 during the 47^th edition of the Ambrosetti Forum “Today and tomorrow’s scenario for competitive strategies” at the customary event venue of Villa d’Este in Cernobbio (Lake Como).

The study was outlined during the event by Francesco Starace, our CEO and General Manager, Valerio De Molli, Managing Partner and CEO of The European House - Ambrosetti, and Stefano Manservisi, member of the International Independent Task Force on Creative Climate Action, Sciences Po - Paris School of International Affairs. It begins with an analysis of the facts. Climate change is the greatest challenge of our times: it’s a global threat that transcends national borders and has consequences for all of our lives. Since the 1990s, the European Union has played a leading role in this battle at international level, adopting specific policies and setting highly ambitious goals to reduce greenhouse gas emissions, increase the share of energy produced from renewable sources and improve energy efficiency. Recently the European Commission raised the bar even higher: in July the 2030 target for reducing greenhouse gas emissions was increased from 40% to at least 55% (compared with 1990 levels). This represents an ambitious goal, which during the next decade should consolidate the EU’s position as global leader in the energy transition. “The EU’s decision confirms that decarbonization is at the core of building the Europe of the future. This is undoubtedly a challenge and, at the same time, the greatest opportunity in Europe’s recent history,” Starace said. “Bridging the investment gap in the energy sector with the 3,600 billion euros needed to reach the 2030 target in Europe (with 190 billion euros in Italy), would have a cumulative impact on GDP of over 8,000 billion euros (with 424 billion euros in Italy). However, at the current pace, Europe wouldn’t hit the new 2030 target on renewables until 2043.”

Redoubling our efforts

Europe therefore has an unprecedented opportunity to launch investments commensurate with this challenge. The EU Next Generation multi-year plan, which has earmarked 750 billion euros for the creation of a more connected, sustainable and resilient Europe, is the fulcrum of the recovery strategy. Italy is the main beneficiary and has drafted a National Recovery and Resilience Plan that adds up to around 235 billion euros, of which 30% is destined for the “green revolution.” Investments in the sectors involved in the process of the energy transition would, in fact, generate knock-on benefits, both in Europe and in Italy, with important, far-reaching effects.