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Roland Kube / Finn Wendland IW-Policy Paper No. 13 14. July 2021 How the EU can achieve the 2030 climate targets in the road transport and building heat sectors

With the upcoming Fit-for-55 package the European Commission works towards implementing a set of wide-ranging legislative proposals to align policy frameworks across the EU with the objectives of the EU Green Deal.

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How the EU can achieve the 2030 climate targets in the road transport and building heat sectors
Roland Kube / Finn Wendland IW-Policy Paper No. 13 14. July 2021

How the EU can achieve the 2030 climate targets in the road transport and building heat sectors

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German Economic Institute (IW) German Economic Institute (IW)

With the upcoming Fit-for-55 package the European Commission works towards implementing a set of wide-ranging legislative proposals to align policy frameworks across the EU with the objectives of the EU Green Deal.

This study examines four regulatory options, including carbon pricing, for the road transport and buildings sectors, which are responsible for 40 percent of GHG emissions and so far not covered under the EU-ETS. While a swift harmonization of carbon pricing mechanisms under one uniform framework, covering all countries and sectors, may seem theoretically appealing on the basis of economic efficiency and cost minimization, severe distributional implications, both economically (carbon-leakage) and socially, undermine such options as practicable at least in the short-term. Alternatively, we propose the introduction of a separate 2. ETS in combination with an emissions-oriented reform of the existing energy taxation rules as a framework which proves economically efficient, socially balanced and ecologically effective. Any carbon pricing scenario should integrate complementary social measures for cost redistribution favouring low-income households, as well as measures to maintain industry competitiveness. Additional measures supporting a conversion of parallel carbon pricing systems may minimize the economic costs of the EU Green Deal over the long-term.

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How the EU can achieve the 2030 climate targets in the road transport and building heat sectors
Roland Kube / Finn Wendland IW-Policy Paper No. 13 14. July 2021

How the EU can achieve the 2030 climate targets in the road transport and building heat sectors

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German Economic Institute (IW) German Economic Institute (IW)

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Definitions and Documentation Principles
Sarah Fluchs / Adriana Neligan / Finn Arnd Wendland IW-Trends No. 2 30. May 2022

Climate Investments: Definitions and Documentation Principles

Achieving climate neutrality requires investment in technologies which protect the climate from global warming and necessitates a process of transformation in all sectors of the economy.

IW

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Sarah Fluchs / Adriana Neligan / Carmen Schleicher / Edgar Schmitz IW-Report No. 27 20. May 2022

Circular Business Models: How circular are companies?

On the way to climate neutrality, the transition from a linear economy to a circular economy plays an important role. Resource cycles can be implemented in different ways in companies.

IW

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