Unlocking European biogas and biomethane: Policy insights from comparative analysis

Marzia Sesini, Anna Cretì and Olivier Massol
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Marzia Sesini: Florence School of Regulation, European University Institute
Anna Cretì: Chaire économie du climat - Chaire économie du climat, Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Olivier Massol: IFPEN - IFP Energies nouvelles, IFP School, CentraleSupélec, City University of London

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Abstract: The scaling up of renewable gases is now being presented as a critical and effective component of the EU's long-term decarbonization strategy. Yet, the support schemes implemented for biogas and biomethane are far less studied than the ones dedicated to renewable power generation (e.g., solar or wind). This work bridges this gap by reviewing the supporting policies implemented in the EU and conducting a retrospective comparative analysis of the mechanisms implemented in Germany, Denmark, and Italy. The analysis is based on primary data extracted from policy statements that have been harmonized. Results show that incentivizing the supply side lowers the risk associated with early investments and market development. Conversely, they highlight inhomogeneity among countries in accounting for demand and end-use in their policies. Finally, they point at the availability of feedstock and the geographic and economic structure of a country as factors influencing the development of a market for renewable gases. The analysis stresses the value of policy mix in promoting biogas and biomethane in the EU's energy mix, and it hinges on the importance of scrutinizing sectoral massification, novel business models, infrastructure integration, and enhanced financial accessibility to improve their competitiveness and market advancement within the energy landscape.

Keywords: Renewable gas; Biomethane; Biogas; Policy mix; Subsidies; Comparative analysis (search for similar items in EconPapers)
Date: 2024-07
New Economics Papers: this item is included in nep-eec, nep-ene, nep-env and nep-reg
Note: View the original document on HAL open archive server: https://hal.science/hal-04779838v1
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Published in Renewable and Sustainable Energy Reviews, 2024, 199, pp.114521. ⟨10.1016/j.rser.2024.114521⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04779838

DOI: 10.1016/j.rser.2024.114521

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