IS THE CURRENT EU CLIMATE INSTRUMENT MIX ADEQUATE?

The document evaluates the EU's climate policy instruments, finding that while 2020 targets are likely to be met, the reductions were driven more by the economic crisis than by policy. It highlights low cost-effectiveness due to a lack of uniform carbon pricing and notes that energy efficiency targets are at risk.

• The European Union is currently on track to achieve its 2020 targets for renewable energy and greenhouse gas emissions reduction, but the economic crisis has been the primary driver of these reductions rather than climate policies.
• The EU Emissions Trading System (EU ETS) reduced emissions in its covered sectors by 11% between 2005 and 2012, but its carbon price signal has been too low and uncertain to independently drive innovation in low-carbon technologies.
• The current instrument mix has successfully increased the share of renewable energy, reaching 13% of gross final energy consumption in 2011, though support schemes like feed-in tariffs have often resulted in high short-term abatement costs.
• Energy efficiency policies are failing to meet 2020 targets, with significant gaps remaining in the transport sector, where emissions have not decreased since 1990.
• The cost-effectiveness of the EU's climate policy is low because there is no uniform carbon price across sectors and countries; for example, implicit carbon prices for natural gas are very low or zero for households in the UK, Spain, Poland, and the Czech Republic.
• While the feasibility of the EU ETS is high due to low political resistance and minimal evidence of carbon leakage, public acceptance of energy taxes is lower, and rising electricity bills in Germany and Spain are increasing opposition to renewable energy support.

APA

Rey, L., González-Eguino, M., & Markandya, A. (2014). IS THE CURRENT EU CLIMATE INSTRUMENT MIX ADEQUATE? Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201409240153352144075365.pdf

Chicago

Rey, Luis, Mikel González-Eguino, and Anil Markandya. IS THE CURRENT EU CLIMATE INSTRUMENT MIX ADEQUATE? Basque Centre for Climate Change, 2014. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201409240153352144075365.pdf.

Wikipedia

{{cite report |last1=Rey |first1=Luis |last2=González-Eguino |first2=Mikel |last3=Markandya |first3=Anil |title=IS THE CURRENT EU CLIMATE INSTRUMENT MIX ADEQUATE? |publisher=Basque Centre for Climate Change |date=July 2014 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201409240153352144075365.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rey2014current, author = {Rey, Luis and González-Eguino, Mikel and Markandya, Anil}, title = {{IS THE CURRENT EU CLIMATE INSTRUMENT MIX ADEQUATE?}}, institution = {Basque Centre for Climate Change}, year = {2014}, month = jul, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/201409240153352144075365.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }