Achieving cost efficiency with the 30% greenhouse gas emission reduction target of the EU

Tommi Ekholm

Research output: Book/ReportReport

Abstract

This working paper analyzes the greenhouse gas reduction targets of the EU up to 2020, focusing on the cost efficiency of the targets. Using scenarios calculated with the integrated assessment model TIAM-Nordic, three separate cases of possible targets for the EU ETS and non-ETS sectors are assessed. The results indicate that should the EU shift to a more ambitious emission reduction target of 30% from 1990 levels by 2020, a large majority of the cost efficient emission reduction potential that is required for reaching the more ambitious target lies in the ETS sector. The calculated scenarios also underline the need for increased flexibility for carrying out the emission reductions in the non-ETS. Without flexibility between Member States in the reduction efforts, cost efficiency would be reduced remarkably. Moreover, as the actual reduction potentials of ETS and non-ETS sectors in 2020 can not be predicted accurately, cost efficiency can not be reached by a careful setting of separate targets for the ETS and Member States. Instead, flexibility mechanisms between the ETS and Member States' non-ETS sectors should be introduced.
Original languageEnglish
Place of PublicationEspoo
PublisherVTT Technical Research Centre of Finland
Number of pages22
ISBN (Electronic)978-951-38-7490-2
Publication statusPublished - 2010
MoE publication typeNot Eligible

Publication series

SeriesVTT Working Papers
Number149

Fingerprint

greenhouse gas
cost
emission reduction

Keywords

  • climate change
  • emission reductions
  • cost efficiency
  • scenario
  • EU
  • ETS
  • non-ETS

Cite this

Ekholm, T. (2010). Achieving cost efficiency with the 30% greenhouse gas emission reduction target of the EU. Espoo: VTT Technical Research Centre of Finland. VTT Working Papers, No. 149
Ekholm, Tommi. / Achieving cost efficiency with the 30% greenhouse gas emission reduction target of the EU. Espoo : VTT Technical Research Centre of Finland, 2010. 22 p. (VTT Working Papers; No. 149).
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Ekholm, T 2010, Achieving cost efficiency with the 30% greenhouse gas emission reduction target of the EU. VTT Working Papers, no. 149, VTT Technical Research Centre of Finland, Espoo.

Achieving cost efficiency with the 30% greenhouse gas emission reduction target of the EU. / Ekholm, Tommi.

Espoo : VTT Technical Research Centre of Finland, 2010. 22 p. (VTT Working Papers; No. 149).

Research output: Book/ReportReport

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AB - This working paper analyzes the greenhouse gas reduction targets of the EU up to 2020, focusing on the cost efficiency of the targets. Using scenarios calculated with the integrated assessment model TIAM-Nordic, three separate cases of possible targets for the EU ETS and non-ETS sectors are assessed. The results indicate that should the EU shift to a more ambitious emission reduction target of 30% from 1990 levels by 2020, a large majority of the cost efficient emission reduction potential that is required for reaching the more ambitious target lies in the ETS sector. The calculated scenarios also underline the need for increased flexibility for carrying out the emission reductions in the non-ETS. Without flexibility between Member States in the reduction efforts, cost efficiency would be reduced remarkably. Moreover, as the actual reduction potentials of ETS and non-ETS sectors in 2020 can not be predicted accurately, cost efficiency can not be reached by a careful setting of separate targets for the ETS and Member States. Instead, flexibility mechanisms between the ETS and Member States' non-ETS sectors should be introduced.

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Ekholm T. Achieving cost efficiency with the 30% greenhouse gas emission reduction target of the EU. Espoo: VTT Technical Research Centre of Finland, 2010. 22 p. (VTT Working Papers; No. 149).