Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?

The transition to a low-carbon economy can create new job opportunities but may cause job displacement in some sectors that heavily rely on fossil fuels. In order to gain a balanced appraisal in understanding the broader consequences of climate policies, this paper analyses the impact of the EU Fit...

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Main Authors: Sigit Perdana, Marc Vielle
Format: Article
Language:English
Published: Elsevier 2025-02-01
Series:Renewable and Sustainable Energy Transition
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2667095X24000126
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author Sigit Perdana
Marc Vielle
author_facet Sigit Perdana
Marc Vielle
author_sort Sigit Perdana
collection DOAJ
description The transition to a low-carbon economy can create new job opportunities but may cause job displacement in some sectors that heavily rely on fossil fuels. In order to gain a balanced appraisal in understanding the broader consequences of climate policies, this paper analyses the impact of the EU Fit for 55 with carbon border adjustment on EU employment at the regional level. Research findings prove that certain regions are disproportionately affected by job losses, indicating that the acceptability of these targeted policies should address these potential inequalities. The most exposed are regions with vast energy mining industries, however implementing CBAM reduces the exposure of regions with energy-intensive industries. Some regions in Greece, Spain and Italy are still very vulnerable post-CBAM implementation, suggesting high sensitivity of job losses and low capability of these regions to deal with energy transition. Accordingly, ensuring effective support for these vulnerable regions is critical to enhancing public acceptance and further cooperation for the EU climate commitment and a more well-managed transition to a low-carbon economy.
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institution Kabale University
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publishDate 2025-02-01
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series Renewable and Sustainable Energy Transition
spelling doaj-art-6e0f9a9656b34c21b898432b3b6a25a62024-12-18T08:54:05ZengElsevierRenewable and Sustainable Energy Transition2667-095X2025-02-016100088Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?Sigit Perdana0Marc Vielle1Corresponding author.; LEURE Laboratory, École Polytechnique Fédérale de Lausanne (EPFL), CH-1015 Lausanne, SwitzerlandLEURE Laboratory, École Polytechnique Fédérale de Lausanne (EPFL), CH-1015 Lausanne, SwitzerlandThe transition to a low-carbon economy can create new job opportunities but may cause job displacement in some sectors that heavily rely on fossil fuels. In order to gain a balanced appraisal in understanding the broader consequences of climate policies, this paper analyses the impact of the EU Fit for 55 with carbon border adjustment on EU employment at the regional level. Research findings prove that certain regions are disproportionately affected by job losses, indicating that the acceptability of these targeted policies should address these potential inequalities. The most exposed are regions with vast energy mining industries, however implementing CBAM reduces the exposure of regions with energy-intensive industries. Some regions in Greece, Spain and Italy are still very vulnerable post-CBAM implementation, suggesting high sensitivity of job losses and low capability of these regions to deal with energy transition. Accordingly, ensuring effective support for these vulnerable regions is critical to enhancing public acceptance and further cooperation for the EU climate commitment and a more well-managed transition to a low-carbon economy.http://www.sciencedirect.com/science/article/pii/S2667095X24000126European UnionCarbon border adjustmentComputable general equilibrium modelJobsEnergy intensive industriesEmployment impacts
spellingShingle Sigit Perdana
Marc Vielle
Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?
Renewable and Sustainable Energy Transition
European Union
Carbon border adjustment
Computable general equilibrium model
Jobs
Energy intensive industries
Employment impacts
title Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?
title_full Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?
title_fullStr Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?
title_full_unstemmed Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?
title_short Industrial European regions at risk within the Fit for 55: How far implementing CBAM can mitigate?
title_sort industrial european regions at risk within the fit for 55 how far implementing cbam can mitigate
topic European Union
Carbon border adjustment
Computable general equilibrium model
Jobs
Energy intensive industries
Employment impacts
url http://www.sciencedirect.com/science/article/pii/S2667095X24000126
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