Future EU Climate Policy: Challenges and Chances

‘It is important to reconcile the EU's long-term climate goals of decarbonisation and climate neutrality with securing energy supplies at affordable prices for citizens and businesses. This is the only way to protect the international competitiveness of European industry,’ says cep climate expert Götz Reichert, who authored the study with Martin Menner and Svenja Schwind.

The researchers call for the solution to the carbon leakage problem to become a top priority for the EU, especially for the export industry. ‘Carbon leakage threatens value creation and jobs, prosperity and social peace in the EU. It also undermines EU climate policy by increasing global greenhouse gas emissions overall,’ criticises Menner.

Menner explains: ‘Carbon pricing through emissions trading is ecologically more effective and economically more cost-efficient compared to dirigiste requirements and expensive subsidies. EU emissions trading must therefore be extended to other sectors, while at the same time relieving the burden on companies and citizens with its revenues. Internationally, it can be a starting point for the urgently needed cooperation with third countries,’ emphasises the cep expert.