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Should the EU climate policy framework be reformed?

Author

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  • David Ellison

    (Institute for World Economics, Hungarian Academy of Sciences, Hungary)

Abstract

Though to-date the European Union (EU) has played the most significant leadership role in international negotiations to reduce greenhouse gas (GHG) emissions, the emission-reducing performance of individual EU Member states has for many been less than stellar. Several EU15 Member states continue to raise rather than lower emissions. Analysing the most successful policy instruments, this paper argues EU policy efforts could benefit from three important innovations. The following strategies – the adoption of an EU-wide FIT (feed-in tariff), an EU-wide carbon tax and more flexibility in the trading of carbon credits – could significantly improve emission reductions, their relative cost-efficiency and spread burden-sharing more evenly across technologies and Member states. This raises important questions, both about the effectiveness of EU and Kyoto-style commitments, as well as the EU Emission Trading Scheme (ETS). The commitment strategy, and in particular the EU ETS mechanism, have had the smallest impact on emission reductions. The proposed set of strategies could make a far greater contribution to future EU efforts and potentially lock in the impressive progress already made. Such a policy shift, if successful, would also greatly enhance the EU’s already significant credibility and bargaining power in international climate negotiations.

Suggested Citation

  • David Ellison, 2011. "Should the EU climate policy framework be reformed?," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 2, pages 133-167, December.
    • Handle: RePEc:jes:journl:y:2011:v:2:p:133-167
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    File URL: http://www.ejes.uaic.ro/articles/EJES2011_0202_ELL.pdf
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    References listed on IDEAS

    as
    1. Georg Zachmann, 2011. "Is European climate policy the new CAP?," Policy Briefs 493, Bruegel.
    2. David L. Ellison & Attila Hugyecz, 2008. "An initial investigation of the EU's 2020 climate change package and its potential domestic impact," IWE Working Papers 186, Institute for World Economics - Centre for Economic and Regional Studies.
    3. Yosef Bhatti & Kasper Lindskow & Lene Holm Pedersen, 2010. "Burden-sharing and global climate negotiations: the case of the Kyoto Protocol," Climate Policy, Taylor & Francis Journals, vol. 10(2), pages 131-147, March.
    Full references (including those not matched with items on IDEAS)

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