6. Tackling the Drawbacks of Past and Current EU Energy Transition Policies

This chapter examines the main challenges of the EU’s energy transition. It first provides a comprehensive assessment of the EU’s performance against the objectives of the Energy Union, the EU’s most explicit attempt to address the so-called energy trilemma. Based on a set of indicators, structured around the five dimensions of the Energy Union, the analysis shows that the EU’s energy system is today in a weaker position than ten or even five years ago. The chapter then evaluates whether the EU’s current strategy can serve as an effective development policy, capable of revitalizing the European economy and contributing to global decarbonization. The growing emphasis on strategic autonomy—amid rising geopolitical tensions—reflects a view of global interdependence as conflictual rather than cooperative. This inward-looking stance risks undermining the international cooperation essential for a successful energy transition, while the narrow solution space of the energy trilemma is further constrained by Rodrik’s new climate trilemma. It also reflects what Krugman termed the “competitiveness obsession”, overlooking trade-offs between domestic production and economic efficiency, and failing to address Europe’s industrial weaknesses. As an alternative, the chapter advances a “cooperative mission-oriented” strategy: a new model of productive globalization based on collaboration rather than competition. Its dual objectives are to reduce global inequality and combat climate change, through industrial policies that promote innovation without resorting to protectionism, and through international cooperation that can foster the global development of green technologies and services and expand the clean economy. Such a strategy could improve allocative efficiency while ensuring Europe secures a fair share of the benefits.