The twin transition, its inequalities and the aims of the ST4TE project

The green and digital transitions are influencing our economies and societies, presenting possibilities for innovation, growth, and sustainability. Collectively referred to as the twin transition, these shifts have the potential to shape a future that is both environmentally responsible and digitally advanced. However, they can also expose and exacerbate existing inequalities while giving rise to new ones. This article explores the meaning of the twin transition, examines the inequalities it may generate, and introduces the ST4TE project as a response to these emerging challenges.

The green and digital transitions

Policymakers often refer to the green and digital transitions, but what do they mean by those terms?

The dominant interpretation of green transition, in its ecomodern format, focuses on building sustainable economies by rethinking how resources are produced, consumed, and recycled. It places emphasis on policy areas such as renewable energy (e.g. wind and solar power), innovative solutions for reducing CO2 emissions (e.g. electric or hydrogen vehicles), and circular economy principles that minimise waste and emissions. The green transition also extends beyond carbon reduction, recognising the interconnected challenges of biodiversity loss, ecosystem degradation, and increasing pressure on natural resources. Beyond technological advancements, it encourages systemic shifts in transport, agriculture, and land use to prevent resource depletion and promote ecological balance. It also calls for individual, organisational, and collective behavioural and cultural changes – adopting more sustainable habits, supporting local eco-friendly businesses, and implementing policies, subsidies, and investments that protect both the climate and biodiversity. It is considered a “transition” because it involves gradual yet transformative steps towards sustainability, aligning with broader environmental goals, including those outlined in the Sustainable Development Goals.

The digital transition involves the widespread integration of technologies – such as artificial intelligence, automation, and data-driven systems – into both industry and everyday life. These technologies have the potential to improve efficiency, connectivity, and overall quality of life. For example, smart algorithms may optimise urban traffic or tailor educational content to individual learners. Again, it is considered a transition as new patterns of behaviour emerge, transforming society. The interaction between humans and technology is central to the digital transition.

However, are the green and digital transitions distinct, happening simultaneously or overlapping? 

The concept of twin transition reflects the understanding that the green and digital transitions are everywhere and for everyone – they are twins. For a citizen, the twin transition means living in a world where digital technology is increasingly integrated into daily life (e.g. smart homes, digital services, online healthcare) while also benefiting from greener practices (e.g. clean energy, sustainable transportation, reduced pollution). In many respects, the green and digital transitions reinforce each other: digital tools can advance green objectives (e.g. AI to optimise energy consumption), while green initiatives often stimulate new forms of digital innovation. However, digitalisation, while enabling sustainability in many ways, also comes with environmental costs. Data centres consume vast amounts of energy, the production of digital devices relies on finite resources, and electronic waste is a growing challenge. In some cases, digital expansion can even slow down aspects of the green transition by increasing the overall energy demand.

Inequalities emerging from the twin transition

Although the twin transition as a policy idea promises numerous societal benefits, it can also exacerbate existing inequalities – or create new ones. These inequalities may appear in economic, social, geographical, and structural dimensions.

With regard to the economy, labour markets are evolving rapidly under the twin transition. A growing demand for digital and green expertise can displace workers with lower skill levels, particularly in automation-prone industries such as logistics. Urban centres, equipped with advanced infrastructure and more highly trained workforces, are likely to benefit most, leaving rural or under-resourced regions struggling to catch up, especially if the traditional role of rural areas as sites for extractive industries is not reconsidered. 

Additionally, economic barriers often restrict access to green technologies in an ecomodern logic. High costs often limit lower-income households from adopting solutions like solar panels or electric vehicles, reinforcing inequalities. However, community-based approaches, such as local energy cooperatives, can offer more inclusive alternatives. Similarly, emissions are closely linked to wealth, as higher-income groups tend to have larger carbon footprints. Systemic shifts, such as prioritising public transport over private vehicles, could promote more sustainable urban mobility.

Social inequalities often mirror educational and economic divides. While the emergence of high-skilled roles in green and digital fields can create valuable opportunities, these are only accessible if education systems adequately prepare individuals to seize them. Regions lacking robust STEM (science, technology, engineering, and mathematics) education or facing entrenched barriers for marginalised groups – such as women, older adults, or indigenous communities – risk leaving significant portions of their population unable to benefit from or participate in the twin transition. Even algorithms can inadvertently perpetuate bias in recruitment, lending, or service provision if they are trained on flawed or incomplete datasets.

Geography also shapes the benefits of the twin transition. Urban areas typically have a stronger digital infrastructure, better access to renewable energy options, and more support from policy frameworks. On the other hand, in rural areas, low-carbon energy can be available for growing food or cheaper materials for building a house. By contrast, rural regions may lack the funding, connectivity, or expertise to deploy green solutions at scale, resulting in a cycle of uneven development. In addition, climate-related risks – such as floods, droughts, or extreme temperatures – are often distributed unequally, leaving communities in affected regions more vulnerable if resources to adapt are scarce.

Finally, structural imbalances in policy and investment should also be considered, as they can further induce economic, social, and geographical disparities. For example, wealthier stakeholders often hold greater influence over regulations and programmes, potentially sidelining less-privileged groups – despite their higher emissions per capita. Financing gaps play a significant role too, since affluent households and businesses can more readily afford sustainable or digital upgrades. This amplifies the divide between those who can invest in the twin transition and those left behind.

The ST4TE project

Overall, although the twin transition is presented as a promise for a more sustainable and interconnected future, it can exacerbate or create new inequalities. In response, the ST4TE project seeks to address these challenges by assessing the impacts of the twin transition and providing evidence-based solutions. By linking specific inequalities to targeted policy measures, the ST4TE project aims to ensure that both the green and digital transitions proceed in an inclusive way.

Key outputs from the project include:

• The Twin Transition Inequalities Index: A tool to benchmark regional impacts, pinpointing areas in need of targeted support.

• White Paper: Policy recommendations designed to mitigate inequalities and foster inclusive, sustainable growth.

• A territorial Impact Report: Detailed analysis of regional disparities, alongside strategic actions to minimise the gap between advantaged and disadvantaged areas.

Through these initiatives, the ST4TE projects aims to help build a more equitable future, ensuring that no one is left behind as society evolves towards greener and more digital solutions.