Under the EU-wide Emission Trading Scheme (ETS), CO2 allowances have thus far been allocated largely free of charge. This paper presents a didactic synthesis on the impact of the ETS and argues that such a cost-free allocation will lead to an increase in electricity prices even when strong...

Decarbonisation is harder for transport, heating, industry and agriculture. That is, a doubling of the decarbonisation rate requires much more than a doubling of the policy effort. The low-hanging fruit has been picked.

The European Green Deal aims at climate neutrality for Europe by 2050, implying a significant acceleration of emission reductions. To gain the necessary support, it needs to reduce regional and social inequalities in Europe. We present objectives in terms of jobs, growth and price stability to...

With its communication "Sustainable Carbon Cycles", the European Commission has opened a new chapter in European climate policy. For the first time, natural and artificial CO2 capture and storage technologies are to be covered jointly in an overarching regulatory approach. This article reviews...