A drastic change in the way we produce and consume energy is necessary to contain the risk of a global environmental catastrophe. For its part, the EU has set targets for reduction of GHG emissions by up to 80-95% of 1990 levels by 2050 to keep global temperature increases below 2°C. One key policy for achieving this target cost-effectively is the European Emission Trading System (EU ETS). However, the only partial coverage of important emitting sectors (namely transport) creates economic inefficiency. While the ETS has succeeded in containing carbon emissions in the power sector, it has not provided sufficient signals for incentivising low-carbon investments. Thus, we suggest making the EU ETS wider and deeper. Continue reading »
Development of hydrogen technologies is mainly pursued because of the potential to store energy from intermittent energy sources and to provide an alternative fuel for transportation.