The European Union is considering scrapping the use of binding renewable energy targets as part of its global climate change policy mix that will extend action from 2020 to 2030.
The Financial Times reported that this move — presumably due to concerns over high European energy costs during the ongoing economic turndown — will "please big utility companies but infuriate environmental groups." The International New York Times framed the story in similar ways.
The press coverage has missed the very important reality that this potential decision by the European Commission will be good news both for the economy and for the environment.
The fundamental reason is that in the presence of the European Union's Emissions Trading Scheme (EU ETS) — its pioneering, regional cap-and-trade system that covers electricity generators and large-scale manufacturing — the "complimentary" renewables mandate conflicts with, rather than compliments other policies.
Without the renewables mandate, the cap being planned for the EU ETS will be achieved at lower cost and will foster greater incentives for climate-friendly technological change.
Read more: Will Europe Scrap Its Renewables Target? That Would Be Good News for the Economy and for the Environment | Robert Stavins
The Financial Times reported that this move — presumably due to concerns over high European energy costs during the ongoing economic turndown — will "please big utility companies but infuriate environmental groups." The International New York Times framed the story in similar ways.
The press coverage has missed the very important reality that this potential decision by the European Commission will be good news both for the economy and for the environment.
The fundamental reason is that in the presence of the European Union's Emissions Trading Scheme (EU ETS) — its pioneering, regional cap-and-trade system that covers electricity generators and large-scale manufacturing — the "complimentary" renewables mandate conflicts with, rather than compliments other policies.
Without the renewables mandate, the cap being planned for the EU ETS will be achieved at lower cost and will foster greater incentives for climate-friendly technological change.
Read more: Will Europe Scrap Its Renewables Target? That Would Be Good News for the Economy and for the Environment | Robert Stavins
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