The Energy Security Gains from Strengthening Europe’s Climate Action
Departmental Papers, May 28, 2024
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- The Energy Security Gains from Strengthening Europe’s Climate Action
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Bibliographic details
- Authors: Geoffroy Dolphin, Romain A Duval, Hugo Rojas-Romagosa, Galen Sher
- Published: May 28, 2024
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9798400265655.087
Key findings from the analysis
- Individual policy tools — including carbon pricing, energy efficiency standards, and accelerated permitting procedures for renewables — tend to improve energy security.
- Sector-specific regulations deliver larger energy security gains than carbon pricing and spread those gains more evenly across countries.
- Sector-specific regulations also benefit some fossil-fuel-intensive economies in Central and Eastern Europe.
- A broad climate policy package can both achieve Europe’s emissions-reduction goals and deliver sizeable energy security co-benefits.
- An illustrative package that would cut emissions in the EU, UK, and EFTA by 55 percent with respect to 1990 levels by 2030 is estimated to improve the two energy security metrics used in this paper by close to 8 percent already by 2030.
- Beyond modeled policies, technology, market design, and supply chain reforms are needed for an energy-secure green transition.
Model, metrics, and scope
- Analytical approach: global computational general equilibrium model.
- Geographic scope emphasized: EU, UK, and EFTA; Central and Eastern Europe highlighted for distributional effects.
- Energy security assessment: based on two energy security metrics (as used in the paper) that show improvement under the illustrative policy package by close to 8 percent by 2030.
Policy implications and recommendations
- Adopt a broad climate policy package combining carbon pricing with sector-specific regulations to maximize energy security gains and distribute benefits more evenly across countries.
- Prioritize energy efficiency standards and accelerated permitting for renewables as tools that generate larger energy security improvements relative to carbon pricing alone.
- Complement policy instruments with reforms outside the modeled toolkit:
- Technology reforms to support the green transition.
- Market design reforms to integrate higher shares of renewables and enhance resilience.
- Supply chain reforms to secure critical inputs for clean energy deployment.
Quantitative highlights
- Emissions reduction target in illustrative package: 55 percent with respect to 1990 levels by 2030 (for EU, UK, and EFTA).
- Estimated improvement in the two energy security metrics used in the paper: close to 8 percent by 2030.
- Paper length: 42 pages.
- Publication identifiers: DOI https://doi.org/10.5089/9798400265655.087; Issue 005; Series Departmental Paper No 2024/005; ISBN 9798400265655; ISSN 2616-5333.
By Geoffroy Dolphin, Romain A Duval, Hugo Rojas-Romagosa, and Galen Sher; May 28, 2024.
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- Departmental Paper