• Client:  EC - DG Energy
  • Implementation period: July, 2020 - December, 2021 (Ongoing)
  • Geographic coverage: European Union

How can carbon border adjustment mechanisms support increased climate ambitions in the EU?

In this study we analyse the impacts of a possible EU carbon border adjustment to discover how they may influence the outlook of the energy system in Europe. While these dynamics impact the entire global economy, the question for the energy system is how energy demand, supply and networks will be affected. These changes in demand, supply and transmission have implications for energy and climate targets, which in this study are analysed with quantitative, econometric methods. The carbon border adjustment will also be evaluated for its impact on specific sectors and specifically for energy intensive industries.

The project is led by Vivid Economics, in collaboration with Trinomics, E3Modelling, Fraunhofer and DIW. The project will run from July 2020 and will finish by December 2021.

This investigation provided the following preliminary results:

  • The impact of carbon border adjustment mechanisms on the energy system;
  • The resilience of the EU ETS;
  • Energy system and sector integration.