Interview with Hubertus Bardt, Head of the Research Division at the Cologne Institute for Economic Research
At EU level, new proposed legislation for a clean-energy policy is being adopted. New policies are currently being discussed regarding the increased reduction of CO2 emissions, as well as EU-wide energy consumption targets for the year 2030 and national energy efficiency targets and measures to be derived from them. But what happens when the proposed objectives contradict and undermine each other?
Increasingly stringent energy consumption targets for the year 2030 flanked by national energy efficiency targets are about to being agreed at the EU level. A study by the German Economic Institute (IW) shows that these targets when applied to ETS-sectors, conflict with the overall aim of a cost-efficient decarbonization.
Today, the EU Commission presented new guidelines and proposals for the European energy policy. With regard to the energy market design, the proposed package offers some welcome visions. They have the potential to indeed overcome the fragmented and somewhat inefficient state of national energy policies, including in Germany.