CAKE at EPG workshop about ETS2

CAKE at EPG workshop about ETS2

CAKE at EPG workshop about ETS2

On 26-th September 2023, Robert Jeszke the CEO of CAKE was a speaker at Energy Policy Group workshop entitled
“The impact ofdecarbonisation policies on households in Central and Eastern Europe”, that also addresses the means to support the vulnerable energy consumers. Estimated effects of ETS2 was showcased for households in Bulgaria, Germany, Hungary, Poland and Romania. Discussions were also refer to how the upcoming Social Climate Fund could mitigatethese socio-economic costs.

CAKE experts presented the economic impact of the implementation of ETS2 up to 2050. 

Below are the main outcomes from presentation:

1️⃣ CAKE simulations suggest that inclusion of new sectors into the EUETS will be associated with an increase in the marginal emission abatement costs in the trading system due to more expensive reduction options available in the other sectors (currently not covered by EU ETS)

2️⃣ From 2030 emission absorption (negative emissions/removals) is crucial for achieving net-zero emissions in 2050. The LULUCF sector has a significant share in absorption, but also important part of absorption is coming from use of BECCS technologies.

3️⃣ EU ETS enlargement has only small macroeconomic impact in aggregate (EU level), but with high prices of emission allowances it may lead to significant welfare effects at country level.

If you want to know more about our CAKE work please check our latest analysis: ” VIIEW on EU ETS 2050: Changing the scope of the EU ETS“