EU energy: decarbonisation and economic competitiveness

CER evidence to the House of Lords argues that energy is central to climate change mitigation. Over three quarters of the EU-27’s greenhouse gas emissions come from the production and use of energy. Energy is also central to the economy, fuelling industry and providing substantial employment. Low-carbon energy may eventually become cheaper than high-carbon energy (particularly when indirect costs and energy security factors are taken into account). But it is currently more expensive. So there is potential conflict between the need for decarbonisation and the need for economic growth and improved competitiveness. The briefing presents solutions to this possible conflict.