Publications

La revue de l’énergie – Interactions between the EU ETS and complementary energy policies

1 January 1970 - Special issues

In operation since 2005, the European Emissions Trading Scheme (EU ETS) aims at sending a carbon price signal to the most emitting installations from power and industry to drive their decarbonization. After three Phases of functioning, the EU ETS meets new challenges in preparation of its Phase IV. Indeed on July 15th, the European Commission published a proposal for a revision of the EU ETS Directive for the post 2020 period. This proposal provides a 43% emissions reduction target for the EU ETS and a linear reduction factor increased to 2.2% from 2021. This new ambition is embedded in an energy and climate package composed with a binding 40% GHG reduction compared to 1990, a binding 27% share of Renewable Energy Sources (RES) in gross final energy consumption, and an indicative 27% energy efficiency (EE) improvement compared to 2007 baseline – both without any binding targets for Member States.

Such a design of the energy and climate policies package raises the issue of interactions between these policies and their impacts on the EU ETS, presented as the central pillar of the European climate policy. This article examines, in a first section, interactions between the EU ETS and complementary energy policies during Phases II and III and their consequences on European allowances (EUA) surplus. Then, results from the POLES model provide an assessment of energy and climate policies in the EU up to 2030, with only a GHG emissions target and further with additional RES and EE targets. Based on lessons from the 2020 energy and climate package, recommendations are provided to manage interactions between the EU ETS and complementary energy policies in order to improve the cost-effectiveness of the 2030 climate and energy policies package.

Read the article to the link

 

La revue de l’énergie – Interactions between the EU ETS and complementary energy policies
To learn more
  • 04/22/2025 Blog post
    Planning for the cost of climate action: a practical guide for local governments

    Local authorities play a leading role in ecological planning. As major contributors to public investment they have core responsibilities that can significantly accelerate the transition, such as expanding public transport networks or retrofitting public buildings for energy efficiency. According to I4CE, in France, local authorities in France need to double their investments in decarbonization by 2030 -without even accounting for future adaptation costs.

  • 04/10/2025
    Transition plans and remuneration policies: what are the challenges for financial actors?

    Integrating climate indicators into variable remuneration is a burning issue. Although it was removed at the last minute from negotiations on the Corporate Sustainability Due Diligence Directive (CSDDD), the proposal is still very much alive in the policy debate . While the topic is becoming increasingly central to remuneration in large companies, it still appears to be a taboo within the banking sector. This requirement was already included in the European Central Bank’s supervisory guidelines as early as 2020, yet it appears to have been largely neglected by banks.

  • 03/28/2025 Hors série
    The pathway for climate investments in turbulent times – annual report 2024

    We are witnessing a withdrawal of commitments to climate action. In the US, President Donald Trump does not hide his hostility to what he calls the ‘climate hoax’. In Europe and in France, new narratives around competitiveness, strategic autonomy and security are gaining ground, reflecting a new political reality. If there is still a broad consensus on the long-term objective of climate neutrality, how to get there is increasingly challenged, generating uncertainty. The scarcity of fiscal resources impacts the willingness to embark on the green transition.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer