THE STATE OF THE EUROPEAN UNION Towards a new legislative term

THE STATE OF THE EUROPEAN UNION 96 progress in phasing out fossil fuels and building up an energy supply and industrial production based on re- newables would have to be achieved in a few years to even remain within reach of the 1.5-degree target. Even a limitation to 2 degrees is not achievable if we con- tinue along the current path. All this means that it is time to get down to business. The envisaged reforms affect the houses and apartments, workplaces, holidays and transport of the citizens of the EU. Even if there is a widespread understanding that drastic reforms are re- quired to contain climate change, fears arise as soon as ’people’s own homes, work, everyday lives, and wallets are affected. The population is exhausted by the crises of the past years, unsettled by the loss of familiar cer- tainties. The prospect of a massive restructuring of the economy and society does not contribute to a sense of calm and confidence. There is also a psychological challenge for political leaders. Europeans need a new narrative, a new vi- sion of the future while remaining honest and resist- ing the temptation to mask challenges and obstacles with flowery promises. That would only strengthen the disenchantment with democracy and ultimately damage the climate policy reforms. But what promises should be made to the population? The absence of the climate apocalypse is too little here. You don’t lure people out from behind the gas-fired stove by drawing horror sce- narios and then promising that with great efforts things won’t be quite so dramatic. People need to have hope for something better. Planning is good, executing is better The challenges are also enormous at the operational level. Even the immensely accelerated construction of wind turbines and solar modules is anything but a trivial matter. And yet it seems relatively simple compared to the remaining infrastructural expansion. In the past, the expansion of electricity grids and pipeline network was massively neglected, both at the national level in most member states as well as within Europe and with the neighbouring regions. Now we are paying the price for these shortcomings. They not only make it more difficult to secure supply in times of shortage - as for instance after ’Russia’s invasion of Ukraine - but also make sta- ble supply in times of surplus more challenging. In May 2023, for example, more electricity was generated in the EU via solar plants than via coal-fired power plants for the first time. Even in coal heavy countries such as Germany and Poland, coal-fired electricity generation fell to an all-time low. Investment in solar installations increased by 10% last year. That is good news for the climate. At the same time, however, it is also becoming evi- dent that Europe urgently needs to step up the expan- sion of its electricity network as well as its storage ca- pacities, and to become more flexible. Otherwise, there is a risk of network overloads and price fluctuations that could hinder the further expansion of renewables. If re- newable energies are further expanded, this will lead in the future to electricity demand being completely covered by wind and solar energy in certain phases. Ac- cording to the merit order principle that applies on the electricity market, this would lead to a sharp drop in electricity prices during these periods. Resulting strong price fluctuations would make investments in renew- able energies uncertain and correspondingly expensive. In addition to a better developed power grid, energy storage facilities are therefore needed. Without them, the ecological transformation of the energy sector is not feasible. Stationary storage systems play a central role in a decentralised system based on renewables. However, grids and storage capacities have so far not kept pace with the expansion of renewables. Accordingly, both at the European level and in nu- merous member states, approval procedures have re- cently been simplified and speeded up, and rights of objection have been limited to a more practicable level. While this is urgently needed, it is not sufficient. Addi- tionally, the declarations of intent to reduce bureaucracy must now urgently be followed by corresponding practi- cal steps. A clear path instead of a labyrinth The growing pressure to act has initiated and acceler- ated far-reaching reform projects in recent months. Further funds to support ecologically motivated expan-