What options do the Austrian federal states have to set important impulses for climate and energy policy in Austria? This question was the focus of the expert dialogue "Austria's energy transition in the field of tension of federalism" organised by the umbrella organisation "Erneuerbare Energie Österreich" (EEÖ) and the "Österreichisches Wirtschaftsforschungsinstitut" (WIFO) in Vienna's Albert Hall in June 2023. Last but not least, the upcoming major reform of the financial equalisation between the federal government, the provinces and the municipalities in Austria provided a backdrop for the presentations on technical and country-specific potentials for the expansion of renewable energy, necessary targets for more energy efficiency and the sector-specific reduction of greenhouse gases.

In the concluding panel discussion in particular, the participants contrasted experiences from political practice. Dr. Michael Thöne, Managing Director of the "Finanzwissenschaftliches Forschungsinstitut" at the University of Cologne (affiliated institute of the WiSo Faculty), recommended not to rely exclusively on the major reform of the fiscal equalisation system in order to give sufficient consideration to the energy transition and climate protection. In case of doubt, effective and climate-friendly measures of the energy transition would have to be implemented alongside the financial equalisation scheme and not within it. Such "small and dirty solutions" would speak for their speed, because even Austria can no longer afford to be slow when it comes to climate protection.

Michael Thöne has worked as a scientific policy advisor for more than 25 years and advises numerous institutions, including ten federal ministries, state governments, the German Bundestag, state parliaments, local government associations and municipalities, international governments, EU institutions, the OECD and the WTO. In May 2020, he took over the position as Managing Director of the "Finanzwissenschaftliches Forschungsinstitut" at the University of Cologne. His research interests include fiscal federalism, public debt and fiscal sustainability, tax policy, municipal finance and environmental economics.

• Panel discussion with Dr. Michael Thöne
• Dr. Michael Thöne on the FiFo Cologne website