Low and uncertain carbon prices are often stated as a major obstacle for industrial sector investments in technologies to deliver deep emissions reductions. Project-based carbon contracts underwritten by national governments could addressregulatory risk, lower financing costs and strengthen...

We first discuss different rules for pricing and provision of balancing across EU member states and their implications. Some member states face significant transmission constraints inside their pricing zone(s). In principle, this can be avoided with smaller pricing zones and in some instances...