The low price for CO2 allowances in the EU emission trading scheme has triggered a wide discussion on interactions between ETS, efficiency and renewable targets and policies. Behind this debate are concerns about what happens next, both under the existing targets and instruments and in the formulation of different targets for the period post 2020. The uncertainty around the nature of future targets increases risks around the return profile of new energy investments, and holds back investment strategies. Policy targets can be seen as an interface between political objectives and specific policies and programs. This characterization underpins a clear analysis of targets. The paper first explores the link from political objectives to emission, renewable and efficiency targets, followed by a discussion how the targets can provide guidance for policy makers to implement and manage policies and programs and to provide visibility for companies to inform strategic and investment choices. The specific nature of EU ETS - as a target incorporated in a policy instrument, is subsequently discussed. At the end the analytic framework then provides the basis first for the discussion of implications for the possible formulation of energy and climate targets.
Themen: Energiewirtschaft
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