United in Diversity? EU Core‐Periphery Divides at the Time of the Green Transition

ABSTRACT This work analyses the structural implications of the green transition and of the ‘new industrial policy’ aimed at achieving its main goals. Focusing on the European case, a thorough mapping of the structural factors–i.e., share of energy intensive industries, green technological capabilities, green state aid–potentially shaping the distribution of costs and benefits among countries is provided. Building on this mapping, the EU's green industrial policy is thoroughly analyzed, assessing whether it is going to exacerbate internal divides, further weakening the EU in the new global context; or to revitalize convergence, with the periphery catching up in terms of productive and technological capabilities. We show that, although broad and well‐articulated, the EU's green industrial policy strategy does not seem apt to the task of pursuing the twofold goal of accelerating the green transition and fostering internal convergence.