Currently, there are no systematic support measures for different types of renewable energies that, regarding their contribution to climate mitigation, guarantee equal conditions for competition. This resulted in major distortions and causes high costs for the economy.
The project aims at developing options for an expansion of the EU‐ETS to all greenhouse gases and to small scale renewable energy production in the electricity and heating sector in order to improve the consistency with the climate policy objectives of the German government and to establish an efficient instrument for regulating greenhouse gas emissions.
A special focus of the project concerns the design of a new EU‐ETS+ which covers all greenhouse gas emissions along the whole value chain. In addition, the options for expanding the EU‐ETS to small production units in order to include renewable energies in the electricity and heating sector are investigated and possible efficient solutions are suggested. As Germany as well as the EU are first movers in climate mitigation, the treatment of imported goods which are not subject to climate policy instruments will be given special attention. The allocation of emission rights and the decision about the level of the cap on emissions will play an important role for the distribution of the burden of climate mitigation and the effectiveness of the new instrument for supporting the transition to a renewable energy based economy.
The reform of the EU‐ETS requires an adjustment of the different national climate policy instruments across the EU. The project will give special attention to the legal aspects which need to be considered when the current EU‐ETS is to be transformed into the new EU‐ETS+.
In cooperation with: Meo Carbon Solutions, University of Göttingen