Auction revenues from emissions trading systems (ETSs) have rapidly grown in recent years and are becoming an increasingly important consideration for policymakers. ETS revenues can play a key role in supporting the transition to net zero emissions by improving the political acceptability of ETSs, enhancing environmental outcomes of market-based instruments and consolidating jurisdictions’ fiscal resources. Earmarking (designating funds or resources for a particular purpose) establishes a clear link between the costs of climate policies and the associated benefits, thereby contributing to increase public support for carbon pricing. A majority of ETSs earmark their revenues to finance programmes in favour of climate mitigation, industry competitiveness and innovation and social support. Studies show that allocating even a limited share of revenues to low-income households is sufficient to compensate for the negative effects of carbon pricing. Earmarking the EU ETS revenues could contribute to strengthening the European Union’s own budget and to advancing the EU carbon neutrality objective by 2050.
The EU ETS with companion policies is more robust than relying solely on either regulatory or carbon-pricing interventions. Policies should be developed to account for the disparate impacts of the [...]
Customers are expected to play a fundamental role in the transition to a decarbonised and digitalised energy system. However, experience so far suggests that customer engagement in energy markets cannot [...]
This deliverable, which is part of the Horizon 2020 OneNet project, outlines the alignment activities carried out in OneNet Task 3.4, focusing on integrating the proposed electricity market concepts with [...]
Flexibility involves the adjustment of energy consumption or generation schedules to benefit the grid, for instance, providing services such as balancing, congestion management, and voltage control. Flexibility can be offered [...]