Energy consumption targets could impede effective and cost-efficient decarbonisation - study

The EU’s plan to introduce stringent energy consumption targets could be counterproductive if  the aim is to effectively and cost-efficiently decarbonise Europe’s economy, says a new study conducted by the Cologne Institute for Economic Research (IW). On the one hand, large-scale decarbonisation relies on energy-intensive sector coupling technologies – which would actually increase energy needs. On the other hand, additional measures could run counter to the EU Emissions Trading System (EU ETS). “In sectors covered by the EU ETS, one should not be forced to use additional energy efficiency instruments. They add to the cost burden for companies without helping the decarbonisation efforts,” says the author, Benjamin Tischler. Instead, he proposes to include all relevant economic sectors in the EU ETS, and to only introduce additional policies that “remedy market imperfections”.

Find the press release in English here, and the study in German here.