December 13, 2010

European Energy Policy and the Transition to a Low-Carbon Economy

by Jeremy Lawson

- To ensure that the transition to a low-carbon economy is achieved at a low cost, the EU should seriously consider including all transport sectors in the Emissions Trading Scheme when practical and appropriate, and ensure that only sectors rigorously identified as being at genuine risk of carbon leakage should continue to receive free allowances until 2020. The Commission’s third energy market liberalisation package should be strengthened by requiring full ownership unbundling of transmission service operators and ensuring the powers of the proposed Agency for Co-operation of Energy Regulators are broad enough to contribute effectively to a truly single European energy market. This Working Paper relates to the 2010 Economic Survey of the European Union. (www.oecd.org/eco/surveys/EuropeanUnion)

Lawson, J. (2010). "European Energy Policy and the Transition to a Low-Carbon Economy." OECD Economics Department Working Papers, No. 779, OECD Publishing, Jun 2010.