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
  • 07/24/2025 Blog post
    Can the next EU budget point the way to an investment plan for climate transition?

    Commission President von der Leyen announced a €2 trillion EU budget fit “for a new era,” set to launch for a seven-year period in 2028. As EU-watchers in Brussels and beyond scrambled to digest the reams of legislative proposals that followed this headline-grabbing announcement, much in the detail should give pause – especially from the perspective of closing the EU’s climate investment deficit.

  • 07/09/2025 Blog post
    What’s next for climate finance? From Seville to Belém

    With the dust settling from COP29’s hard-fought negotiations on the New Collective Quantified Goal (NCQG), attention is shifting to how the climate finance goal will be met. The challenge is how to scale up financing for increasingly connected priorities in a challenging landscape of debt stress and cuts in official development assistance.

  • 07/08/2025
    Annex 2 – Methodology note (2025 Edition)
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