A European Energy Transition based on three pillars: Targets, markets and law
37 Pages Posted: 12 Sep 2022 Last revised: 10 Nov 2022
Date Written: September 8, 2022
Abstract
The European Union had already been engaged in 30 years of climate policy before setting itself the objective of becoming carbon neutral by 2050 and adopting the European Green Deal in 2019. Prior to these recent developments, targets on emissions reduction had been progressively raised over the years in connection with the successive commitment periods under the Kyoto Protocol and the Paris Agreement. In parallel, progressively ambitious supporting targets were introduced for the reduction of energy demand and increasing the share of renewables. To achieve these targets, increasingly stringent legislation was implemented, covering a larger number of activities and energy vectors, sources or uses, and with an increasingly European market dimension and integrated governance.
This contribution aims at analysing the EU’s long-term energy strategy adopted in order to reach climate neutrality, drawing on 30 years of energy and climate policies and drastically accelerating their pace. In doing so, this chapter will first provide an overview of past and present climate and energy policy objectives and ambitions, as proclaimed by the European Green Deal, amongst other initiatives, before examining the instruments used to promote them. This chapter will argue that the European Union opted for a three-pronged approach, based on the mutually reinforcing effects of setting targets (first pillar), creating favourable market conditions (second pillar), and implementing sector specific legislation (third pillar). The contribution will examine the interplay between these pillars and the governance put in place before drawing some concluding observations on this ap-proach.
JEL Classification: K32
Suggested Citation: Suggested Citation