What future for a sustainable economy?

Following the people's rejection of the environmental responsibility initiative, the radio programme Modem (Rete Uno - RSI) dedicated an episode to the topic. One of the guests was Prof. Barbara Antonioli Mantegazzini, Adjunct Professor at the Faculty of Economic Sciences of Università della Svizzera italiana (USI) and Vice Director of the Institute for Economic Research (IRE).

The proposal aimed for an economy that values the Earth's resources. However, it was rejected by over two out of three voters in Ticino, as many believed it would make the economy weak and uncompetitive. Are we, therefore, living in a time of climate or environmental indifference? According to Professor Barbara Antonioli Mantegazzini, due to the complexity of the economic and social situation we are facing, it is not always easy to put the climate issue at the centre of the political agenda and people's concerns. "The energy transition is crucial for preventing us from exceeding the planet's ecological limits. However, it must also ensure a minimum level of social well-being for everyone. This aligns with the principle Ursula von der Leyen emphasised: no one should be left behind in this process. Politicians today are faced with a complex array of issues further complicated by the dwindling availability of public resources. Daily challenges, such as critical problems in healthcare systems and rising unemployment, often push environmental concerns to the background, making it even more difficult to implement sustainable strategies."

An economic model such as the one proposed by the initiative is currently under discussion: "The goal is to transition towards green growth, where the innovation, production, and commercialisation of clean technologies serve as the foundation for future development. This requires a strong integration of industrial policy with environmental objectives, ensuring that economic progress aligns with sustainability. The regulatory framework is adapting to a more sustainable perspective, with specific interventions in the transport, mobility, and construction sectors. However, these areas at the European and Swiss levels face the greatest challenges in meeting emission reduction targets. Therefore, it is essential to reevaluate consumption models based on the principles of sustainability," explained the Vice Director of the IRE. In addition, it is equally important to work on social acceptance and information for the population.

According to Professor Antonioli Mantegazzini, decarbonisation and climate neutrality are not unattainable goals, but there are signs of a possible change of heart, as demonstrated by some recent political decisions in the United States, in line with the approach adopted by Trump, who had already withdrawn his country from the Paris Agreement during his first term in office. More generally, in order to achieve climate objectives, it is essential that concrete actions are aligned with the underlying principles, avoiding discrepancies between strategic planning and the so-called "grounding", i.e. the actual implementation of the planned measures.

The energy transition process is advancing at different rates across the globe, with notable disparities between countries. Some nations have postponed their climate targets due to their relatively lower historical contribution to global emissions. For example, China and India have set their carbon neutrality goals for 2060 and 2070, respectively, while many other countries aim for a 2050 deadline. However, both China and India are making substantial investments in renewable energy and ecological transition.

And when we talk about investments, we also need to focus on funding: "The public sector must take the lead in promoting and accelerating investments, while the private sector should also get on board. In fact, the investments needed to enhance energy efficiency in buildings, install solar systems, and expand electric mobility are significant and require strong economic support."

The challenges now faced involve complex socio-economic and geopolitical dynamics, which Switzerland and Europe must navigate responsibly. "Failing to take action can be just as costly as taking action, as inaction also leads to economic and environmental issues that primarily impact the most vulnerable segments of the population. The key challenge is to ensure that the costs of the transition do not burden those with the lowest incomes," concluded Professor Antonioli Mantegazzini.

The complete episode of Modem, with guest Professor Barbara Antonioli Mantegazzini, is available at the following link. (Italian only)