Achieving carbon neutrality requires increasingly stringent climate policies that, in jurisdictions with an emissions trading system (ETS), may lead to higher carbon prices, affecting industries, end-users and households. In the last few years, a rising carbon price trend has emerged in the leading carbon markets, which may partly be attributed to higher ambition. This rapid increase has provoked concerns about the social acceptability of more stringent climate policies among the population vulnerable to price changes. These concerns have been fuelled by the rise in energy prices, particularly after the outbreak of the war in Ukraine, which may hit the poor and jeopardise the successful post-pandemic recovery. The viability of more stringent climate policies and the achievement of the climate neutrality goal also depend on the (re)distributional impacts of such policies and the way the population perceives these impacts. In this context, an ETS can play a role by raising revenues that can be used for redistribution purposes. It is, therefore, relevant to examine ETS revenues and the related expenditures performed by the governments. The EU provides a relevant case study. In 2022, new policies aiming at putting the EU on track to climate neutrality were agreed. This climate ambition was confirmed despite concerns about the high carbon price in the EU ETS and the distributional impact of high energy prices triggered by the invasion of Ukraine by Russia.
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 [...]