CAKE i LIFE VIIEW 2050 at EUI i LIFE COASE

CAKE i LIFE VIIEW 2050 at EUI i LIFE COASE

CAKE i LIFE VIIEW 2050 at EUI i LIFE COASE

On June 18th, 2024 Jakub Boratyński, our CAKE modelling expert presented the latest outcomes of our work and the LIFE VIIEW 2050 project at the European University Institute Robert Schuman Centre for Advanced Studies and LIFE COASE Workshop: “The role of carbon markets in reaching carbon neutrality”.

Jakub Boratyński delivered the presentation entitled: „Economic interaction between climate policy instruments. The role of carbon markets in reaching carbon neutrality”. During his speech he provided a brief overwiew of the LIFE VIIEW 2050 project goals and i the simulation modeling toolkit used (CGE model-d- place, MEESA- power sector model, EPICA- agricultural model, TR3E- transport model). He also presented the results of the latest LIFE VIIEW 2050 analysis, which focused on the synergies between the EU ETS and other EU climate policy measures – carbon removal, hydrogen, and transport.

The principal conclusions of the presented outcomes are presented below:

• Pricing removals results in a significant drop in #EUETS carbon prices (from 880 EUR/tCO2 to 310 EUR/tCO2 in 2040 with full pricing).
• Pricing removals, particularly #BECCS, enhances GDP and consumption (consumption increase up to 0.9% in 2040 in the EU).
• Emission reduction by carbon price in #agriculture leads to reduced production and a sharp increase in the prices of agricultural products.
• Removals through arable land afforestation do not compensate agriculture emissions but reduce non-ETS carbon prices.
• The green hydrogen production development accelerates due to subsidies, especially between 2030 and 2035.

Agenda: LINK 

More information: LINK

Presentation: VIIEW_2050_Firenze2024