LIFE ENSPIRE project

Project

LIFE ENSPIRE

“Exploring New Scenarios for the Progressive Integration of Neighbouring States into the EU ETS beyond 2050”

Duration

01.10.2024 – 31.10.2028

Target audience

European Commission, government and state administration of the Member States, neighbouring countries and Polish central administration

Brief description

• The LIFE ENSPIRE project aims to assess the potential impacts of the evolving European Union Emissions Trading System (EU ETS) and Carbon Border Adjustment Mechanism (CBAM) on the EU and selected neighbouring countries.
• LIFE ENSPIRE will develop an analytical framework, including datasets and numerical models, designed to examine the impact of climate policies in the EU and in the neighbouring regions on emissions and economic growth paths, taking into account trade interdependencies and differentiated mitigation options.
• It aims to identify and address challenges related to achieving net-zero emissions by these countries in convergence with the EU.
• By establishing broader and more robust international networks of experts, LIFE ENSPIRE aims to enhance global cooperation in climate policy-making.

Area of interest in

the context of EU ETS

Inclusion in the EU ETS of other countries bordering the EU:

• Analyzing the potential benefits and challenges of integrating selected EU neighbouring countries into the EU ETS;
• Assessing the impact of including these close-border EU states on emission reduction efforts and overall effectiveness of the EU ETS;

Impact of border connected matters on EU ETS functioning:

• Investigating the influence of energy transmission from selected EU neighbouring countries on the functioning of the EU ETS;
• Assessing the implications of trade of goods, specifically Carbon Border Adjustment Mechanism (CBAM), on the EU ETS and its market dynamics;

Extension the calculation horizon beyond 2050:

• Analysing the impact of longer calculation horizons on emissions reduction targets, carbon pricing mechanisms, and investment strategies.

Objectives

• Developing and providing a high-quality accessible information and data.
• Raising the environmental awareness of the public (including outside EU) through wide dissemination of high-quality information and data.
• Building broader and stronger international networks of experts (including outside EU).
• Extending and applying the sectoral and macroeconomic models.

Actions

Analytical work

The analytical part of the project will be to identify policy instruments, acquire data, extend the available models and develop analyses on the above mentioned topics.

Dissemination – Stakeholder involvement

The effects of the analytical work will be shared in publications, during workshops, seminars, conferences and within the platform of international experts.

Transferability and replication

We will undertake intensive cooperation with the target group, including the European Commission and government administration, so that the results of our work can be used in the design of a policy framework.