Johannes Bollen, 13 March 2020

While the energy transition to decarbonise the EU’s economy fully by 2050 will be felt economically in all member states, the costs of decarbonising can be substantially lowered through maximising the production of hydrogen, which in turn can be used to generate electricity. This column uses a global climate-energy economic model to compare three energy production scenarios. It finds that wind energy plus gasification of biomass, natural gas, or coal with carbon capture storage can reduce the cost of achieving Europe’s 95% emissions-reduction goal by 40%. 

Michael Mehling, Harro van Asselt, Kasturi Das, Susanne Droege, 10 December 2019

The new European Commission is considering the introduction of a ‘carbon border tax’. This column argues that the current EU legal framework and earlier policy proposals for border carbon adjustments offer a good indication of what such a measure might look like. If certain substantive and procedural guidelines are observed, a ‘carbon border tax’ along these lines can work and pass legal muster, but some important questions remain. Without a concrete mandate in the EU emissions trading system allowance directive to elaborate a border carbon adjustment, new legislation or an amendment will be necessary. 

Richard Tol, 27 September 2016

The UK may opt to leave the EU Emissions Trading System. This column argues that as the UK is a large importer of emission permits, this would make meeting its climate policy targets much harder and dearer, and would remove the legal standing of many permits circulating in the rest of the EU. Some non-EU countries do take part in the Emissions Trading System, and this appears to be the best option for the UK post-Brexit. If not, the UK Government will be forced into a major overhaul of its climate policy.

Cameron Hepburn, 30 October 2012

The EU’s Emissions Trading System includes all flights to, from and within Europe as eligible for regulation – something that has faced strong opposition from the US and China. With Airbus’s orders from China falling, the pressure has grown from within Europe. This column argues that for reasons of economic principle, legality and practicality, the EU should stand its ground.

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