Following the EMD reform of 2024, the Commission is tasked to publish a report on the ‘possibilities of streamlining and simplifying the process of applying for a capacity mechanism’ by January 2025. • One approach to streamlining is to relax burdensome requirements that are not particularly beneficial. In this policy brief, we explore one such requirement which is today critical for capacity markets: explicit cross-border participation. • Our short-term recommendation is to relax this requirement because 1. it is particularly burdensome for Member States to implement, and 2. it can be temporarily replaced by implicit cross-border participation, which is easier to implement and achieves comparable results. • The EMD reform of 2024 moreover promoted capacity mechanisms as a “structural element of the electricity market design”. However, they remain conceived and operated at the national level. Having national capacity mechanisms in an international electricity market leads to costly problems, which cannot be properly solved by any form of cross-border participation. • Our long-term recommendation is therefore to reflect on alternative European solutions.
Capacity mechanisms are gaining momentum in Europe, and the latest EU electricity market reform further reinforces their role. The negative externalities exerted by these national mechanisms in interconnected zones might, [...]
The European Commission has confirmed plans to enshrine a 90% greenhouse gas (GHG) reduction target by 2040 into law, in line with the European Climate Law’s goal of achieving climate [...]
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This report summarises the insights collected during the workshop on “The role of carbon markets in reaching carbon neutrality”, which took place in June 2024. This workshop was part of [...]
The report prepared by Mr Draghi, former President of the European Central Bank and former Prime Minister of Italy, to the European Commission entitled “EU competitiveness: Looking ahead” (“the Draghi [...]
Le Pacte vert européen vise à rendre l’Europe neutre pour le climat d’ici à 2050. Sa déclinaison nationale, la Stratégie nationale bas-carbone (SNCB), propose une feuille de route fondée sur [...]
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