MNI BRIEF: BOI's Panetta Warns On Energy Transition Costs
MNI (LONDON) - The energy transition “will be expensive” and overall costs will be difficult to bear, “particularly for energy-intensive businesses and vulnerable households,” Bank of Italy Governor Fabio Panetta said on Monday at a G7 event in Rome.
Panetta said strategies should “simultaneously address the environmental and social aspects of the problem and strike the right balance between ambition and feasibility.”
Rising public discontent with the energy transition cost calls for solutions for establishing an international incentive framework such as such as the Global Carbon Reduction Incentive (GCRI) scheme, whereby countries with higher per capita emissions compensate countries with relatively low emissions, he said, adding that central bankers would improve their policies by a better understanding of the macro implications from the transition.