Response to the EU Commission Green Paper “A 2030 Framework for Climate and Energy Policies”

Climate Strategies proposes that the EU 2030 framework must move beyond a single greenhouse gas target to a three-pillar system: standards and engagement (Pillar I), markets and pricing (Pillar II), and strategic investment for innovation (Pillar III). The authors argue that relying on any single pillar is self-defeating and that a hybrid price-and-quantity instrument for the EU ETS is necessary to provide the stability required to attract institutional investment. This framework is presented as a means to stimulate economic growth and utilize surplus private capital for low-carbon infrastructure.

• The EU should maintain a three-pillar approach to 2030 targets because multiple targets are necessary to drive the different components of a transformative process, reflecting diverse policy objectives such as economic development and social hardship.
• Relying on a single policy pillar is insufficient: efficiency focus alone leads to 'rebound', price-only approaches face political obstacles and slow response times, and technology-driven approaches fail without market-based 'pull' forces.
• The EU Emissions Trading System (ETS) requires structural reform to include a hybrid design—combining a quantity goal (cap-and-trade) with a price floor or corridor—to reduce volatility and provide the stability needed for large-scale strategic investments.
• The 2030 energy framework can act as an economic stimulus by attracting institutional investment funds—estimated at €14 trillion in Europe—into low-carbon infrastructure, which is estimated to require €1 trillion in investment over the decade.
• The proposed three pillars map to specific economic domains: Pillar I focuses on behavioural and organisational economics (standards/engagement), Pillar II on neoclassical and welfare economics (markets/pricing), and Pillar III on evolutionary and institutional economics (innovation/infrastructure).

APA

Grubb, M., Neuhoff, K., & Hourcade, J.-C. (n.d.). Response to the EU Commission Green Paper “A 2030 Framework for Climate and Energy Policies”. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2016/01/cs-response-to-the-commission-2030-green-paper-final.pdf

Chicago

Grubb, Michael, Karsten Neuhoff, and Jean-Charles Hourcade. Response to the EU Commission Green Paper “A 2030 Framework for Climate and Energy Policies”. Climate Strategies, n.d. https://climatestrategies.org/wp-content/uploads/2016/01/cs-response-to-the-commission-2030-green-paper-final.pdf.

Wikipedia

{{cite press release |last1=Grubb |first1=Michael |last2=Neuhoff |first2=Karsten |last3=Hourcade |first3=Jean-Charles |title=Response to the EU Commission Green Paper “A 2030 Framework for Climate and Energy Policies” |publisher=Climate Strategies |url=https://climatestrategies.org/wp-content/uploads/2016/01/cs-response-to-the-commission-2030-green-paper-final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{grubbndresponse, author = {Grubb, Michael and Neuhoff, Karsten and Hourcade, Jean-Charles}, title = {{Response to the EU Commission Green Paper “A 2030 Framework for Climate and Energy Policies”}}, publisher = {Climate Strategies}, url = {https://climatestrategies.org/wp-content/uploads/2016/01/cs-response-to-the-commission-2030-green-paper-final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }