Twin Transitions? Implementing Climate Policies in the European Union through Digital Transformation

Can ‘digitalisation’ (the process of running business through procedures that take place in digital format) contribute to the green transition? If so, to what extent? The European Union (EU) has recently embraced the idea of synergically combining climate policies and digitalisation, whereby the digital transformation becomes a key tool to achieve net zero carbon emissions. Arguably, while there are manifold advantages in improving, for instance, energy distribution via smart grids, digitalisation also contributes to greenhouse gas emissions. It is therefore necessary to strike the right balance and understand how to best harness digitalisation to implement the green transition. Notably, it is essential that the EU monitor the impact of digitalisation on the overall energy demand to avoid an excessive increase in energy consumption. Arguably, the EU can profitably couple a holistic embracement of digitalisation as the panacea to climate challenges with a ‘learn-by-doing’ approach, setting a variety of real-world experiments across supply chains to test the viability of its digital policy, in close collaboration with stakeholders.