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In person icon Business Vs Politics: Tensions Between Transition Goals and Economic Interests

Political Economy
Business
Climate Change
Corruption
Energy Policy
P052
Andreas C. Goldthau
Willy Brandt School of Public Policy, Universität Erfurt
Jan Osička
Masaryk University

Abstract

The energy transition is unfolding amidst complex political, economic, and institutional dynamics, creating both structural barriers and opportunities for decarbonization. Despite international climate commitments, long-term fossil fuel contracts and entrenched geopolitical dependencies continue to lock in carbon emissions. At the same time, national and corporate responses to the energy transition vary widely, influenced by historical ties, policy frameworks, and strategic priorities. The war in Ukraine has accelerated shifts in European energy markets, exposing vulnerabilities in fossil fuel reliance while prompting divergent pathways—ranging from diversification of gas supply to increased renewable adoption. Meanwhile, industry actors, including energy incumbents, navigate the transition with differing approaches: some resist fundamental change, focusing on decarbonizing existing operations rather than investing in renewables, while others adapt to evolving market and policy pressures by integrating innovation-driven solutions. At the same time, equity considerations have become equally crucial, as policy initiatives designed to drive sustainability often carry unintended social and economic consequences. The industry response to equity issues may also vary depending on the given political context and the involved actors and their interests. This panel examines these tensions across a variety of scales and contexts to understand the interplay between business and politics and the potential impacts on the energy transition.

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