Endorse the Statement on the EU’s legislative proposals on climate change by signing it!

The Policy Outreach Committee (POC) of the European Association of Environmental and Resource Economists (EAERE) prepared a statement on the EU’s legislative proposals on climate change that is presented for endorsement to the whole scientific community in Europe and worldwide. It aims to draw the attention of policy-makers and public opinion on the implications of the legislative package and on some key challenges that need to be addressed in the future. While the package can be further improved, it takes a step in the right direction if we want to raise the ambition of the European climate policy and achieve climate neutrality by mid-century. A rapid implementation of more ambitious policies is of crucial importance to fulfil our commitments, particularly after COP26.

Statement on the EU’s legislative proposals on climate change

Climate change causes severe consequences as documented by the 6th Assessment Report of the IPCC (Intergovernmental Panel on Climate Change). This calls for urgent and more ambitious climate policies. In July 2021 the European Commission presented the ‘Fit for 55 package’ which contains a number of legislative proposals to reduce greenhouse gas emissions by 55% in 2030 compared to 1990, and reach climate neutrality by 2050. Guided by sound economic principles, we are united on the following:

  1. The package is consistent with the above targets. It will provide an efficient and stable framework to mobilize efforts in all sectors, by diversified instruments. The setting of a price on carbon under the EU’s Emissions Trading System (EU ETS) remains a central element of Europe’s climate policy. The deepening and widening of carbon pricing, including the proposal to revise the Energy Taxation Directive, is welcome. EU ETS carbon prices in Europe are today within the range of 50-100€/tonne CO2 indicated by the Stern and Stiglitz Report [1] as the level needed by 2030. To date this has contributed to a cost-effective reduction of emissions covered by the EU ETS of over 40% since 2005.
  2. The legislative package addresses the distributional consequences of climate policy. The way the distributional aspects are perceived by the public opinion plays a key role for the social acceptability and ultimate success of the proposed policies. While some measures may have regressive effects, the recent increase in carbon prices that followed past reforms of the EU ETS raises revenues that can be used for redistribution purposes. It is important politically to address the social impacts on low-income households [2]. The Social Climate Fund, that complements the new ETS for building and transport, can provide a framework to address these distributive impacts.
  3. Higher carbon prices can lead to so-called ‘carbon leakage’, which is a delocalization of polluting activities towards countries with less ambitious environmental regulations. This could be a problem as EU ETS prices rise, though possibly just a temporary one if other major players will also adopt a more stringent climate policy following the European example. Two main routes have been identified to prevent carbon leakage: free allowances to sectors at risk of carbon leakage, or a Carbon Border Adjustment Mechanism (CBAM). Free allocation of allowances has been used so far and should be abandoned. The CBAM can create a level playing field but is challenging both from a technical and trade policy perspective. It is to be welcomed that the Commission’s proposal on a CBAM allows for time for consultation with the EU’s trading partners.
  4. Although the EU has a relatively low share of global emissions, it can play a crucial role in inspiring other countries and demonstrating that the adoption of more ambitious environmental policies does not harm overall economic welfare and the wellbeing of citizens. To that end, green and low-carbon innovations need to be rolled out in massive investments. Macro-economic policy instruments should reflect this need.
  5. The window of opportunities to reach the Paris Agreement targets is rapidly closing. All countries, in particular G-20 countries, need to strengthen their climate policies. More efforts should be devoted to step up international cooperation in the field of environmental and climate governance. In addition, more financial support needs to go to developing countries which are particularly vulnerable to climate change.

[1] https://www.carbonpricingleadership.org/report-of-the-highlevel-commission-on-carbon-prices

[2] On this issue see SDSN 2021.Transformations for the Joint Implementation of Agenda 2030 for Sustainable Development and the European Green Deal. Sustainable Development Solutions Network (SDSN). See also Feindt, S., Kornek, U., Labeaga, J.M., Sterner, T., & Ward, H. (2021). Understanding Regressivity: Challenges and Opportunities of European Carbon Pricing. Energy Economics, 105550, DOI: https://doi.org/10.1016/j.eneco.2021.105550

OFFICIAL TRANSLATIONS:

Statement on the EU’s legislative proposals on climate change

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Climate change causes severe consequences as documented by the 6th Assessment Report of the IPCC (Intergovernmental Panel on Climate Change). This calls for urgent and more ambitious climate policies. In July 2021 the European Commission presented the 'Fit for 55 package’ which contains a number of legislative proposals to reduce greenhouse gas emissions by 55% in 2030 compared to 1990, and reach climate neutrality by 2050. Guided by sound economic principles, we are united on the following:

  1. The package is consistent with the above targets. It will provide an efficient and stable framework to mobilize efforts in all sectors, by diversified instruments. The setting of a price on carbon under the EU’s Emissions Trading System (EU ETS) remains a central element of Europe’s climate policy. The deepening and widening of carbon pricing, including the proposal to revise the Energy Taxation Directive, is welcome. EU ETS carbon prices in Europe are today within the range of 50-100€/tonne CO2 indicated by the Stern and Stiglitz Report (1) as the level needed by 2030. To date this has contributed to a cost-effective reduction of emissions covered by the EU ETS of over 40% since 2005.

  2. The legislative package addresses the distributional consequences of climate policy. The way the distributional aspects are perceived by the public opinion plays a key role for the social acceptability and ultimate success of the proposed policies. While some measures may have regressive effects, the recent increase in carbon prices that followed past reforms of the EU ETS raises revenues that can be used for redistribution purposes. It is important politically to address the social impacts on low-income households (2). The Social Climate Fund, that complements the new ETS for building and transport, can provide a framework to address these distributive impacts.

  3. Higher carbon prices can lead to so-called ‘carbon leakage’, which is a delocalization of polluting activities towards countries with less ambitious environmental regulations. This could be a problem as EU ETS prices rise, though possibly just a temporary one if other major players will also adopt a more stringent climate policy following the European example. Two main routes have been identified to prevent carbon leakage: free allowances to sectors at risk of carbon leakage, or a Carbon Border Adjustment Mechanism (CBAM). Free allocation of allowances has been used so far and should be abandoned. The CBAM can create a level playing field but is challenging both from a technical and trade policy perspective. It is to be welcomed that the Commission’s proposal on a CBAM allows for time for consultation with the EU’s trading partners.

  4. Although the EU has a relatively low share of global emissions, it can play a crucial role in inspiring other countries and demonstrating that the adoption of more ambitious environmental policies does not harm overall economic welfare and the wellbeing of citizens. To that end, green and low-carbon innovations need to be rolled out in massive investments. Macro-economic policy instruments should reflect this need.

  5. The window of opportunities to reach the Paris Agreement targets is rapidly closing. All countries, in particular G-20 countries, need to strengthen their climate policies. More efforts should be devoted to step up international cooperation in the field of environmental and climate governance. In addition, more financial support needs to go to developing countries which are particularly vulnerable to climate change.


(1) https://www.carbonpricingleadership.org/report-of-the-highlevel-commission-on-carbon-prices
(2) On this issue see SDSN 2021.Transformations for the Joint Implementation of Agenda 2030 for Sustainable Development and the European Green Deal. Sustainable Development Solutions Network (SDSN). See also Feindt, S., Kornek, U., Labeaga, J.M., Sterner, T., & Ward, H. (2021). Understanding Regressivity: Challenges and Opportunities of European Carbon Pricing. Energy Economics, 105550, DOI: https://doi.org/10.1016/j.eneco.2021.105550

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580 Leonardo Siclari Italy
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586 andrea staccione Italy
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592 Martina Gambaro Italy
593 Michele Marini Denmark
594 Arthur Rocco Portugal
595 Greta Franke Finland
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606 Abubakar Ismail Pakistan
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608 Stella Corazza Italy
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610 Julia Międlar Poland
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612 Kamil Bilski Poland
613 Sebastian Koryl Poland
614 Grzegorz Jędrzejczak Poland
615 Milan Elkerbout Netherlands
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618 Eleni Kotsira Greece
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620 Elia Battaglia Italy
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622 Elena Scaccia Italy
623 Maria Beatrice Andreucci Italy
624 Gianni Silei Italy
625 David Chiaramonti Italy
626 Lucie Blechtova Czech Republic
627 Stefan Nabernegg Austria
628 Nicola Caravaggio Italy
629 Elena Bazioti Greece
630 Achiransu Acharyya India
631 Mirko Olivastro ??
632 Francesco Squarcia Italy
633 Maria Cristina Caimotto Italy
634 vito frontuto Italy
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636 Valentina Bruno Italy
637 Roberta Sestini Italy
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639 Lorenzo montrone Italy
640 Claudia Apostolo Italy
641 Danilo Loris Marco Italy
642 Elena Vallino Italy
643 Claudia Boetto ??
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645 Nicola Comincioli Italy
646 Dario Sciulli Italy
647 Fabio Clementi Italy
648 Renata Targetti Italy
649 Augusto Ninni Italy
650 Gregor Schwerhoff Germany
651 Andrea Gentili Italy
652 Arianna Paneni ??
653 Sai Bravo France
654 Thilo Haverkamp Germany
655 Chariklia Tziraki Greece
656 Rosa Maria Roman-Cuesta Spain
657 Anna Alberini United States
658 Michael Pahle Germany
659 Florian Egli Switzerland
660 Barbara Annicchiarico Italy
661 Susanne Droege Germany
662 Peter Cramton United States
663 Costanza Consolandi Italy
664 Nicolò Barbieri Italy
665 Maximilian Willner Germany
666 Donato Romano Italy
667 emiliano colantonio Italy
668 Simona Bigerna Italy
669 Maximilian Willner Germany
670 matilde giaccherini Italy
671 Pasquale Pazienza Italy
672 Marcella Veronesi Denmark
673 Edgar J Sanchez Carrera Italy
674 Adrianna Pineda Switzerland
675 Giulia Chersoni Italy
676 Caterina De Lucia Italy
677 Greti Lucaroni Italy
678 Alberto Pototschnig Italy
679 Alberto Majocchi Italy
680 Till Requate Germany
681 Giuseppe Travaglini Italy
682 Katrin Sievert Switzerland
683 paolo russu Italy
684 Roberto Zoboli Italy
685 silvia Micheli Italy
686 Gian Italo Bischi Italy
687 Gianfranco Atzeni Italy
688 Giovanni Ferri Italy
689 laura gardini Italy
690 Dario Caro Spain
691 Elisa Ticci Italy
692 Nicolas Koch Germany
693 Gianfranco Franz Italy
694 Lisa Frollichi Italy
695 Alessio Cratolla Italy
696 Fabio Lamantia Italy
697 Alessio Crastolla Italy
698 Luca Taschini United Kingdom
699 Tong Zhu China
700 Toon Vandyck Belgium
701 Davide Cerruti Italy
702 Gianluca Iannucci Italy
703 Guiomar Martin-Herran Spain
704 Michael Jakob Germany
705 Antonio Massarutto ??
706 Francesca Diluiso Germany
707 Bianca Biagi Italy
708 SAPTORSHEE CHAKRABORTY India
709 Simone Cerroni Italy
710 Sofia Colombo Italy
711 Valentina Balducci Italy
712 Marco Carli Italy
713 Gauthier Vermandel ??
714 Amanda Spisto Netherlands
715 Nicolò Pecora Italy
716 Edward Marcco Koroma Sierra Leone
717 Alessandro Palma Italy
718 Jordi Teixidó Spain
719 Niccolò Parissi Italy
720 Beatrice Venturi Italy
721 Agnese Loy Italy
722 Elisabetta Calabresi Italy
723 DAVIDE CONSOLI Spain
724 Francois Jost Germany
725 Francesco Silvestri Italy
726 Michele Moretto Italy
727 Marcello Galeotti Italy
728 filippo arfini Italy
729 Alessandra Michelangeli ??
730 Agnese Loy Italy
731 Sandrine Labory Italy
732 Luca Vincenzo Ballestra Italy
733 LUCA DI CORATO Italy
734 Giampaolo Esposito Italy
735 Stefano Clo Italy
736 Giovanni Villani Italy
737 Emiliano Santoro Denmark
738 Edgar J Sanchez Carrera Italy
739 Erik Hille Germany
740 John Afuye Nigeria
741 Jose S. Canovas Peña Spain
742 nicolo tomaselli Italy
743 Stefania Tonin Italy
744 Giovanni Dalle Nogare Italy
745 Dimitrios Zormpas France
746 Chiara Calastri United Kingdom
747 Giovanni Bella Italy
748 luca zamparelli Italy
749 Paolo Polinori Italy
750 Germana Giombini Italy
751 Fabio Privileggi Italy
752 Serena Sordi Italy
753 Paolo Sckokai Italy
754 Simone Bastianoni Italy
755 Santiago Rubio Spain
756 Malgorzata Guzowska Poland
757 Iulia Hospodar Romania
758 Francisco Cabo Spain
759 Andris Piebalgs Latvia
760 Giacomo Pallante Italy
761 Giulia Chersoni Italy
762 Francesca Marconi Italy
763 Manuela Coromaldi Italy
764 Marta Meleddu Italy
765 Marco Buso Italy
766 Marco Bagliani Italy
767 lorenzo lotti United Kingdom
768 Jacopo Cammeo Italy
769 Ilaria Livi Italy
770 Olga Chiappinelli Germany
771 Emanuele Ciola Italy
772 Enrico Turco Italy
773 Edoardo Somenzi Italy
774 Giorgio Fagiolo Italy
775 Massimiliano Carlo Pietro Rizzati Italy
776 Olimpia Fontana Italy
777 Arianna Dal Forno Italy
778 Belen Cobacho ??
779 Manuel Dalcastagné Italy
780 Anna Agliari Italy
781 Giulio Quaglini Italy
782 Giulio Cainelli Italy
783 Cristina Penasco Spain
784 GIORGIO RAGAZZINI Italy
785 Nadia Ameli United Kingdom
786 Samuele Mola Netherlands
787 Paul Waidelich Switzerland
788 Ugo Rizzo Italy
789 Lucía Serrano-Lujan Spain
790 Teresa Cappelli Italy
791 Mauro Sodini Italy
792 Luca Gori Italy
793 Marina Bertolini Italy
794 Ilda Mannino Italy
795 Eva Bovolenta Italy
796 Lorenzo Spadavecchia Italy
797 Massimo Ragazzini Italy
798 Alberto Gabino Martínez Hernández Mayotte
799 Marianna Gilli Italy
800 Francesco Nicolli Italy
801 Angelo Facchini Italy
802 Monica Carelli Italy
803 Andrea Ragazzini Italy
804 Pardis Boreiri Iran
805 SILVANA DALMAZZONE Italy
806 SIMONE LUCATELLO Mexico
807 Mario Lorenzo Janiri Italy
808 Stefano Ingallina Italy
809 Andrea Ferrannini Italy
810 Mario Biggeri ??
811 Pietro Zambelli Italy
812 Laura Magi Italy
813 Serena Brianzoni Italy
814 Roberto Dieci Italy
815 Davide Amato Italy
816 maria grazia pazienza ??
817 Cesare Dosi Italy
818 Antal Ferenc Kovacs Hungary
819 Silvia Lelli Italy
820 Julia de Frutos Cachorro Spain
821 Marco Vella Italy
822 Chiara Rapallini Italy
823 Giulia Malevolti Italy
824 Giovanni Belletti Italy
825 Giulio Sapelli Italy
826 Alberto De Franceschi Italy
827 Giovanni Polito Italy
828 ALBERTO PRINA CERAI Italy
829 Camilla Gusperti Italy
830 Alessandro Cocchi Italy
831 Dimitri Paolini Italy
832 Roger Cremades Spain
833 Alice Cambi Italy