Hent Arbejdspapiret
Cost-efficient EU climate policy should center on a streamlined ETS, cutting redundant rules to boost competitiveness productivity.
Arbejdspapir 90: EU Climate Policy and Competitiveness
Udgivet d.
3. februar 2026 - 11:52
Arbejdspapir
EU
Klima
Abstract
Published in EU Climate Policy and Competitiveness: How the EU Can Strengthen Competitiveness by Reforming Climate Policies. Future Europe, 7(1), 115–127.
EU climate policies should be pursued as cost-efficiently as possible. Costly measures make the green transition less likely to succeed in the long run and unnecessarily reduce EU competitiveness. Even while observing the subsidiarity principle, the global externality of climate change leaves ample room for policy action at the EU level. In fact, the EU possesses by far the most efficient instrument for climate policy: the EU Emissions Trading System (ETS).
This article identifies key reform opportunities for the ETS and other EU climate-related policies. It argues that by streamlining the ETS and removing redundant regulatory measures, the EU can minimise the economic costs of the green transition, improve the efficiency and market orientation of EU climate policy, and strengthen productivity.
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