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When postal manager José Belloso decided to sell his Paris apartment this year, he encountered an unexpected obstacle. To comply with stringent regulations aimed at combating climate change, Belloso had to arrange for an energy efficiency assessment of the property.
Constructed in the early 1900s from millstone, a favored material during France's Belle Époque era, Belloso's apartment failed the inspection. Consequently, under a new regulation enacted this year, the property could not be rented out until significant renovations were completed. This setback forced Belloso to reduce his asking price by 50,000 euros ($54,000) to attract a buyer.
The burden of the energy transition is increasingly being felt by consumers, who are experiencing the impact of higher costs. While subsidies initially eased the transition, many governments are now reducing these incentives and implementing new taxes and regulations requiring costly renovations. This shift is causing dissatisfaction among consumers, including those who support the transition in principle.
Governments are struggling to balance the energy transition with other economic and geopolitical considerations. Recent conflicts in Ukraine and elsewhere are prompting governments to reassess their climate policies. Delaying the energy transition could have significant consequences, potentially leading to a substantial increase in global temperatures.
Despite the urgency of the energy transition, there is growing fatigue and resistance among consumers. Many believe that the burden of the transition disproportionately affects low- and middle-income households.
The costs of upgrading infrastructure to support the transition, such as electrical grids, are also contributing to rising energy bills.
In regions like California and Illinois, ambitious clean energy goals are causing tensions between consumers and utilities. Changes to metering rules and other regulations have led to job losses in the solar industry and increased costs for consumers.
In Europe, the energy transition is facing new challenges due to rising energy prices and geopolitical tensions. Germany, in particular, is struggling to balance its climate goals with economic concerns. The recent ruling against the government's climate spending plans has forced a reassessment of its approach to the transition.
Overall, the energy transition is proving to be a complex and challenging process, requiring careful consideration of economic, social, and environmental factors.