Latest data shows that the market-based solution alone is not enough to cut carbon pollution from heavy industry in line with the Paris Agreement goals. A new industrial policy mix is needed to ensure Europe is on a pathway to net-zero carbon emissions by 2040, writes Agnese Ruggiero.
Amid calls from heavy industry to get more free pollution permits in the name of a ‘fair’ EU carbon market, Europe’s workers, taxpayers, and the climate must not be forgotten in the system’s design reform, writes Femke de Jong.
A coming vote in the European Parliament will help decide whether the EU Emissions Trading Scheme will drive necessary low-carbon investment in Europe’s industry over the next decade, write Karsten Neuhoff and Oliver Sartor.
Failure to address climate change effectively will lead to adverse impacts on all countries, but if EU ambition is matched globally, we will maintain economic growth and job creation while meeting the 2°C objective, writes Seán Kelly.
Uncertain energy policy is undermining investor confidence. That means that the sooner the EU agrees clear policies, the sooner investors can start planning for complex investments which can last for decades, writes Stephanie Pfeifer.
While cheap energy prices in industrialised countries can be seen as a short-term reprieve for industries under competitive pressure from low-cost countries, they have negative consequences in the long run, writes Karl Aiginger. He argues that a new industrial policy should support Europe's competitive advantage in clean technology.
"Within a single generation, we can give Europe a truly sustainable energy system," writes EU Energy Commissioner Andris Piebalgs in a February paper for the Robert Schuman Centre for Advanced Studies.