CAKE at the conference OECD
On the 27-th Septemebr, 2023, our CAKE experts, Robert Jeszke and Maciej Pyrka, participated in Session III focusing communicating risks and assuring equity in energy and climate policy at the conference organised by Permanent Representation of the Republic of Poland to the OECD.
Rising energy prices, the need to wean ourselves off Russian fossil fuels in the short term, and at the same time globally insufficient investment in renewable energy sources raise questions about the way forward in the quest for climate neutrality in 2050. Whether it will be more intricate, longer based on fossil fuels, or accelerate the transition to clean energy without undermining energy security. The role of governments supported by specialized international organizations like the IEA and the OECD is to carefully plan policies and strategies to ensure that energy transition is well synchronized with the necessary investments and not undermining energy security, especially in times of exacerbated uncertainty.
Our CAKE experts presented the latest results of our research on economic effects of changing the shape of EU ETS and climatepolicy up to 2050.
Below there are 3 main conclusions from the presentation:
1️⃣ If the EU ETS is to remain the central market-based pillar of EU’s climate policy, it needs to be further reformed and extended to cover new sectors (otherwise the cap could reach zero around 2040).
2️⃣ Achieving net zero substantially relies on removals, with a big role of negative emissions (BECCS & AFOLU) and CCS/CCU + backstop technology such as Direct Air Capture.
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 the 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”Back