Interaction between Climate, Emissions Trading and Energy Efficiency Targets

Barbara Schlomann and Wolfgang Eichhammer

Energy & Environment, 2014, vol. 25, issue 3-4, 709-731

Abstract: The European Union has set a system of climate and energy targets comprising target values for greenhouse gas emissions (GHG), Emission Trading Sectors ETS and non-ETS sectors, energy efficiency and renewable energies until 2020. A new framework up to 2030 is just being developed. We analyse what lessons can be learned from the EU 2020 target system and how a new 2030 framework could be designed coherently. We derive a coherent target system for 2030 from a bottom-up assessment of energy efficiency potentials. Thus we show that ambitious energy efficiency and renewable energy targets also guarantee significant reductions in greenhouse gas emissions of 47–60% compared to 1990. ETS sectors can contribute significantly to the GHG reduction, provided that a stabilisation of the carbon price can be reached. An alternative design with a 40% GHG emission reduction as the only headline target, as currently debated, will not exploit all cost-effective energy saving potentials and so not take advantage of the macro-economic co-benefits of energy efficiency either.

Keywords: Climate policy targets; greenhouse gas emissions; ETS; energy efficiency potentials; target interaction (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:25:y:2014:i:3-4:p:709-731

DOI: 10.1260/0958-305X.25.3-4.709

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