Few would dispute that climate change demands urgent action, yet the question of who should bear its financial cost remains contentious. I largely agree that governments should invest heavily in renewable energy even when this raises electricity bills in the short term, provided that such investment is accompanied by safeguards for the households least able to absorb higher prices.
The strongest argument in favour is that the true cost of fossil fuels is already being paid, just not at the meter. Air pollution, respiratory illness and the damage caused by extreme weather fall on society as a whole, so a tariff that omits these externalities is artificially low. Renewables, moreover, have become markedly cheaper over the past decade, which means that today's premium is largely a transitional one. Governments that commit early to building capacity can therefore lock in lower long-term costs and reduce their exposure to volatile imported gas.
Nevertheless, the burden of higher prices falls unevenly. For a family spending a large share of its income on heating, even a small increase can force a choice between warmth and groceries. Germany's feed-in surcharge, which financed generous subsidies through consumer bills, shows how a sound policy can lose public support when its costs are perceived as regressive. Investment should therefore be paired with targeted relief, such as social tariffs for low-income households, so that the transition does not become a privilege of those who can afford it.
The apparent trade-off between investment and affordability is also less stark than it appears. Public spending on grid upgrades, storage and research can bring prices down over time, precisely because private firms tend to underprovide these shared foundations. The goal should be a falling price trajectory rather than a permanent surcharge.
On balance, the case for heavy investment is compelling, provided it is accompanied by measures that protect vulnerable households. Ignoring the costs would be irresponsible, but so would pretending they are trivial.