We respond to the European Commission consultation on the 2030 framework for climate and energy policies.
Any framework for 2030 and beyond must be designed to reflect the technology that is available to a sector and to stimulate innovation efforts without adding uncompetitive costs onto these sectors.
If a technology is demonstrated to be a viable prospect, fresh thinking is needed on how to stimulate investments in those technologies by competitively exposed sectors: carbon pricing alone will not prompt the big-ticket, low-carbon investments in manufacturing that can lead to profound decarbonisation.
Addressing this fundamental market failure must be central to the design of any EU 2030 framework. Innovative financial mechanisms must be explored to raise the capital required to make the high-cost investments needed by hard-to-treat sectors.
For further information, download the full submission.