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PROPRIETARY
Any use of this material without specific permission of the European Climate Foundation is strictly prohibited
ECF Roadmap 2050 project:
“From Roadmaps To Reality”
IEA
Workshop on integrating carbon pricing with energy policies
18 March 2013
ECF’S ROADMAP 2050 PROJECT – WWW.ROADMAP2050.EU
2
Roadmap 2050: a practical guide to a prosperous, low carbon Europe
Power Perspectives 2030: on the road to a decarbonised power sector
Phase
1
Phase
2
Phase
3
Technical and economic analysis
From Roadmaps to Reality
COM low-carbon 2050 Roadmap
Policy and Implementation analysis
COM energy 2050 Roadmap
PROJECT STRUCTURE AND PARTICIPANTS
Prof. Dr. Christian
Von Hirschausen,
TU Berlin
Prof. Dr. Jean-
Michel Glachant,
Florence School
of Regulation
Dr. Goran Strbac,
Imperial College
London
Georg Zachmann,
Brueghel
Prof. Jorge
Vasconcelos,
TU Lisbon
Christina Hood,
IEA
Prof. Dr. Michael
Grubb, Cambridge
University
Utilities
Participants Coordinator Expert panel
Tech
Manufacturers
TSOs
NGO
DSOs
IT
companies
Finance
Consumers
Energy
Other
organisations Contributing
authors
Lead authors
3
July Aug Sep Oct Nov Dec
Jan
2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jan
2014
Seminars
Policy
agenda
Kick-
off
Final report S1 S2 S3
Take
stock
PROJECT & POLITICAL TIMELINE
16/04 04/07
• Drafting process • Deep-dive sessions • Expert survey
Energy
Summit
Energy
council
Informal
Council
203
0
GP
IEM
cons
2030
initiative
Energy
council
Informal
Council
5
STEP 2 – THE ROLE OF ETS
ETS is all you need: • Caps
emissions • Optimises
across sectors
• Market driven abatement
• Self-correcting
Policy-makers are trying to deliver other
important policy objectives. We cannot assume that politicians will leave the
cap alone, regardless of the impact it might
be having on energy costs or
security of supply.
A broad policy framework is needed to manage the risks of (1) cost and (2) security of supply excursions. It is this tendency to intervene that undermines the self-correcting features of cap and trade mechanisms and creates the rationale for additional mechanisms.
SEMINAR ON CARBON PRICING & COMPLEMENTARY MEASURES – STARTING POINT
Source: E3G - Risk managing power sector decarbonisation in Great Britain, Poland and Germany
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E3G REPORT (2012) - REQUIRED CARBON PRICE IN DIFFERENT COUNTRIES VARY SIGNIFICANTLY
• Investment model - For each market the carbon price develops to find the required level in order to achieve the carbon emission targets (based on current national policies)
• The difference between countries is a reflection both of different carbon targets and of different starting points and investment cycles
• In EUA, the carbon price trajectory of the EC’s Energy Roadmap 2050 was adopted
Fig. EUA price projections and carbon price necessary to deliver national targets
0
20
40
60
80
100
120
140
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
EUR/tCO2
7 7
Carbon pricing vs complementary measures
EU vs MS level governance
Best solution may end up close to current model
(improved version, “Package 2.0”)
EU-wide or regional cooperation mechanisms for RES post-2020
become more important
Analyses indicates cost benefits from EU-coordinated approach
What about technology neutrality vs ‘picking winners’?
MS have different decarb objectives and views on support for technologies
EU ETS covering power sector post-2020 is needed
Need self-reinforcing mechanisms and
governance
Debate needs COM initiative soon
(within this COM term)
SEMINAR ON CARBON PRICING & COMPLEMENTARY MEASURES – EMERGING CONCLUSIONS
SEMINAR ON CARBON PRICING & COMPLEMENTARY MEASURES – KEY QUESTIONS
Key questions to address
• Governance and coherence between jurisdictions: over the next decade, will we have a strong or weak Europe concerning energy policy? o What are the advantages/disadvantages for Member States in signing up to
pan-EU complementary measures?
• Instruments and coherence between instruments: will the ETS be the primary driver of decarbonisation or, as present, a backstop instrument to ensure particular goals are met o What complementary measures are needed to ensure broader energy policy
objectives, what options do Member States have? o How can complementary policies be designed and implemented to ensure
they reinforce the role of ETS rather than undermine it? o Are there any new high level design features that the ETS must have (e.g. to
stabilise price) to ensure consistency with complementary measures and support efficient investment?
PROPRIETARY
Any use of this material without specific permission of the European Climate Foundation is strictly prohibited
ECF Roadmap 2050 project:
“From Roadmaps To Reality”
Thank you
Dries Acke, Policy Manager
