Socially Equitable Energy System Transitions

Summary The European transition to a net-zero economy by 2050 implies a wide range of changes that may adversely affect certain industrial sectors, communities, and regions. However, these impacts are entirely obscured by conventional least-cost analyses. Thus, this work compares the socio-economic impacts of various strategies to decarbonize the energy system by 2050 within the framework of the Sustainable Development Goals (SDGs). We demonstrate that transitions that protect domestic strategic assets and preserve key industrial sectors correspondingly deliver a socially equitable transition. Adopting a technology-agnostic approach to decarbonizing the European electricity system maximizes the associated co-benefits and potentially increases the gross value added (GVA) to the economy by 50% relative to a business as usual scenario. This new way of thinking about the economic transition fundamentally reframes the discussion from one of cost to one of opportunity.