Assessment of EU Instrumentation Options under Different Supranational Governance Scenarios

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? Given that supranational governance scenarios are going to be crucial for the effectiveness and feasibility of EU climate policy, the aim of this document is to assess EU instrument options under different scenarios and come up with general insights for EU policy makers. Therefore, this report analyses climate instrumentation in two international governance scenarios and two EU governance scenarios.

 

Attachment: 

PDF icon Rey et al. (2015)_Assessment of EU Instrumentation Options under Different Supranational Governance Scenarios.pdf

Citation: 

Rey, Luis; Markandya, Anil; González-Eguino, Mikel, (2015). Assessment of EU Instrumentation under Different Supranational Governance Scenarios. CECILIA2050 WP6, Deliverable 6.3. Basque Centre for Climate Change (BC3), Bilbao.

Funding: 

European Commission

Authors: 

Luis Rey, Basque Centre for Climate Change (BC3), Anil Markandya, Basque Centre for Climate Change (BC3), Mikel González-Eguino, Basque Centre for Climate Change (BC3).

Year of publication: 

2015

Number of pages: 

71

Table of contents: 

 

Executive summary

5

1

Introduction

10

2

Governance Scenarios

11

2.1

International Governance

11

2.1.1

Current features of International Governance

13

2.1.2

Non-global-deal Scenario

14

2.1.3

Middle-of the-road scenario

16

2.2

EU Governance

17

2.2.1

Current features of EU governance

18

2.2.2

EU centralised scenario

20

2.2.3

EU decentralised scenario

22

3

Assessment of Instrument Packages in each Governance Scenario

24

3.1

Instrument packages

24

3.1.1

Technology-specific pathway

24

3.1.2

ETS pure-cap pathway

25

3.1.3

ETS price stabilized pathway

26

3.1.4

Emission tax pathway

28

3.2

Implications of the international governance context

29

3.2.1

Climate instrumentation under a Non-global-deal scenario

31

3.2.2

Climate instrumentation under a Middle-of-the-road scenario

39

3.3

Implications of the EU governance

47

3.3.1

Climate instrumentation under a EU centralised scenario

48

3.3.2

Climate instrumentation under a EU decentralised scenario

55

4

Conclusions

62

 

References

65

 

Annex

70