Publications

The EU can build on more than two decades of climate policy, reflected in a number of short- and long-term targets for climate and energy policy, and a suite of climate policy instruments intended to achieve them. On the other hand, there is a gap between the level of ambition expressed in the long-run targets, and the effectiveness of the instruments currently in place.

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In addition to the challenge of reducing emissions to 80% below 1990 levels by 2050, the EU has to be prepared to respond suitably to different external factors. Two of the most critical factors for success in meeting this target are: (i) what climate policies other countries will follow and (ii) how governance rules will evolve within the EU?

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Short-term Improvements for an Effective, Cost-Efficient and Feasible Policy Mix

This report presents options for the reform of the existing EU climate policy mix and institutional architecture, whilst improving its effectiveness and cost efficiency, within the bounds of the existing complement of policy instruments and institutional arrangements, political and public acceptability, legal compatibility and administrative capabilities. The report focuses on short-term changes; those that may be introduced up to 2030, and establishes the basis for further abatement and policy development in the longer-term (to 2050).

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Current instrumentation is partial and is internally inconsistent, with mutually conflicting instruments. Most basically, current instrumentation lacks a clear long term strategy based on design thinking. However, the 2-degrees climate goal, with around 90% CO2 emission reduction for the EU by 2050, can be achieved with different sets of instruments. The report takes a long term view regarding Instrumentation strategies and instrument mixes for the EU’s climate policy.

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