ECB’s Panetta: Energy Transition Policies Need to Balance Ambition and Feasibility

16 September 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Fabio Panetta on Monday said that for the energy transition to be completed, the related framework needed to be attainable.

Speaking at a G7 event at Banca d’Italia, which he heads, Panetta said, ‘A successful transition requires a comprehensive, credible, and inclusive strategy that simultaneously addresses the environmental and social aspects of the problem, and strikes the right balance between ambition and feasibility.’

The energy transition called for international cooperation and appropriate policies, he said. 

However, if the framework were too rigid in stablishing climate goals, there was a risk of 'backfiring by alienating the public and thus reducing political support for climate initiative', he said.