Energy Transitions: The Case of Greece with a Special Focus on the Role of the EU ETS

Abstract

Major energy transitions are associated not only with fundamental transformations of the energy sector but also with multidimensional changes in societies. Existing energy systems are heavily implicated in climate change. This paper investigates from an ecosocialist perspective the prevalent high-carbon energy systems in capitalism and their ongoing transformations, with a special focus on Greece as an EU member. Furthermore, it explores whether the EU ETS, in comparison to renewable energy sources (RES) support schemes, created considerable incentives for effective and socially fair transitions to low-carbon systems. Empirical data reveals the enduring high-carbon composition of gross inland energy consumption in Greece while evidence on gross electricity generation by fuel discloses the limited penetration of RES since 1990. The neoliberal design of ETS at the EU level and its poor workings did not induce investments in low carbon technologies. RES support policies have been more significant. However, both have adverse distributional effects, especially on working people since the latter bear the cost of transition for the most part. Effective and fair low-carbon energy transitions need radical social transformation — an ecosocialist path out of capitalism.