Sectoral Policies for Climate Change Mitigation in the EU

This paper discusses sectoral policies needed to achieve the ambitious greenhouse gas (GHG) emissions reduction targets announced in the European Union’s Green Deal, complementing the companion paper “EU Climate Mitigation Policy”, which focuses on broader EU-level policies. With total emissions nea...

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Bibliographic Details
Main Author: Arregui, Nicolas
Other Authors: Chen, Ruo, Ebeke, Christian, Frie, Jan-Martin
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2020
Series:Departmental Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Sectoral Policies for Climate Change Mitigation in the EU  |c Nicolas Arregui, Ruo Chen, Christian Ebeke, Jan-Martin Frie, Daniel Garcia-Macia, Dora Iakova, Andreas Jobst, Louise Rabier, James Roaf, Anna Shabunina, Sebastian Weber 
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653 |a Environmental Conservation and Protection 
653 |a Energy 
653 |a Public finance & taxation 
653 |a Taxes 
653 |a Climate 
653 |a International relation 
653 |a Climate change 
653 |a Environmental management 
653 |a Environmental Taxes and Subsidies 
653 |a National accounts 
653 |a International organization 
653 |a Carbon tax 
653 |a Greenhouse gas emissions 
653 |a International institutions 
653 |a Global Warming 
653 |a International Economics 
653 |a Macroeconomics 
653 |a Taxation 
653 |a Taxation and Subsidies: Externalities 
653 |a Greenhouse gases 
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653 |a Environment 
653 |a Environmental impact charges 
653 |a Alternative Energy Sources 
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653 |a Saving and investment 
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653 |a Redistributive Effects 
653 |a Transportation 
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700 1 |a Frie, Jan-Martin 
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520 |a This paper discusses sectoral policies needed to achieve the ambitious greenhouse gas (GHG) emissions reduction targets announced in the European Union’s Green Deal, complementing the companion paper “EU Climate Mitigation Policy”, which focuses on broader EU-level policies. With total emissions nearly a quarter below their 1990 level, the EU has made important progress, but the new goals will require much stronger policy action. Moreover, progress has varied across sectors. Emissions from power and industry have fallen by about a third, buildings by a quarter and agriculture by a fifth – while transport emissions have risen. This paper argues that this divergence reflects differences in effective carbon prices, but also cost differences among the available abatement channels, market imperfections, and policy gaps. It discusses specific sectoral policies needed to address these factors and achieve the new emissions reduction goals