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Interaction between Climate, Emissions Trading and Energy Efficiency Targets

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  • Barbara Schlomann
  • Wolfgang Eichhammer

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.

Suggested Citation

  • Barbara Schlomann & Wolfgang Eichhammer, 2014. "Interaction between Climate, Emissions Trading and Energy Efficiency Targets," Energy & Environment, , vol. 25(3-4), pages 709-731, April.
    • Handle: 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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    References listed on IDEAS

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    Cited by:

    1. Fabio Zagonari, 2018. "Coherence, Causality, and Effectiveness of the EU Environmental Policy System: Results of Complementary Statistical and Econometric Analyses," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 1-29, May.
    2. Seongmin Kang & Sungheum Cho & Ki-Hyun Kim & Eui-chan Jeon, 2019. "Comparison of GHG Emission Methods Calculated by Applying Biomass Fraction at Sewage Sludge Incinerators in Korea," Sustainability, MDPI, vol. 11(12), pages 1-10, June.
    3. Wolfgang Eichhammer & Nele Friedrichsen & Sean Healy & Katja Schumacher, 2018. "Impacts of the Allocation Mechanism Under the Third Phase of the European Emission Trading Scheme," Energies, MDPI, vol. 11(6), pages 1-23, June.

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