CAKE in the Czech Embassy

CAKE in the Czech Embassy

CAKE in the Czech Embassy

On 27th June 2024, Robert Jeszke, CAKE CEO, took part in an expert debate on EU climate policy and the energy transition entitled “Next-Gen Energy and Green Transition: Sustainable Future or Economic Stagnation? Charting a realistic path ahead” at the Czech Embassy organised by the Global Arena Research Institute and the Embassy of the Czech Republic in Warsaw.

Robert Jeszke, in addition to presenting modelling results from recent CAKE analyses, highlighted several key points:

• The key role of removals: it is practically impossible to achieve EU reduction targets (net-zero) without CO2 removal technologies (so-called removals) – both natural and technological (BECCS, DACCs).
• The inclusion of removals in the ETS and their large-scale development may lead to a significant decrease in the price of emission allowances and an increase in GDP and consumption.
• Rising EUA prices in the EU ETS and the phasing out of free allocation could increase production costs (risk of carbon leakage) and cause serious trade effects in the EU (e.g. loss of competitiveness for EU exporters).
• Investment is key to decarbonisation and achieving the EU’s net-zero target: industrial investment needs are estimated to be 6 times higher than in the last decade, while the annual investment needs of the energy system (excluding transport), is at least 3% of GDP between 2031 and 2050.