Low-carbon policy package

Policy plays a central role in achieving emissions reductions but cause and effect are complex to evaluate. How do we know if are on the right track, so we can adjust before it’s too late?

To help, we have created a low-carbon policy package. Based on an extensive review of relevant methodologies, it specifies the technological and behaviour changes that are needed for each sector in the economy, and translates them into measurable requirements.

The package is summarised in the Table below and organised by policies that support renewable energy, those that support energy efficiency and all remaining ‘overarching’ incentives.

	Renewables	Energy efficiency	Overarching
General	• Binding greenhouse gas target or budget of 95% reduction until 2050 supported by an ambitious and comprehensive strategy • Innovation for a low-carbon economy
Electricity supply	• Stable support for renewable energy sources of level and size to increase the share by 20% between 2010 and 2020 • No administrative or grid barriers	• Effective and sufficient support of combined heat and power production, 10% additional share in 2020	• Stringent emission trading system allocation and/or emission performance standard for fossil fuel power plants, in total leading to 35% to 40% reduction below 2005 in 2020 • No subsidies for electricity production from fossil fuels (also not through free allowances)
Industry	• Effective support for renewables in industry increase the share by 10% between 2010 and 2020 • Support of innovative breakthrough technologies in industry	• Support schemes or sufficiently ambitious and effective voluntary agreements that lead to significant additional improvements in energy efficiency of more than 2% per year	• Active support towards the redesign of products to be less material-intensive, long-lasting, 100% recyclable • Sufficient levels of energy taxes for industry to factor-in external cost and motivate energy savings and use of renewables • Stringent emission trading system allocation of 35% to 40% reduction below 2005 in 2020
Buildings	• Promotion or mandate for renewable heating and cooling technologies in new and existing buildings for all types of buildings, increase share by by 10% between 2010 and 2020	• Efficiency standards for new buildings for all types of buildings, zero emission by 2014 • Incentive for high energy related retrofit rates for all types of existing buildings, leading to more than 3% per year (average 2010-2020) and more then 2% afterwards• Sufficient incentive for the use of efficient appliances, for example through performance standards • Removal of barriers	• Sufficient levels of energy taxes for households and the service sector to factor in external cost and motivate energy savings and use of renewables
Transport	• Sufficient incentives to increase the share of renewable energy sources in transport (biofuels + renewable electricity) by 10% between 2010 and 2020	• Measures to reduce new vehicle emissions per kilometre, achieving 95g per km by 2015 and new freight vehicles emissions per kilometre cut substantially	• Support modal shift and avoidance of traffic, supported by sufficient investment in lowcarbon transport infrastructure leading to 5% of emissions avoided or moved in 2020 • Sufficient levels of fuel or CO2 taxes to factor-in external cost and motivate energy savings and use of renewables
Agriculture / forestry	• Formulation and implementation of a consistent and comprehensive land use strategy • Effective measures to reduce CH4 and N2O emissions in agriculture • Promotion of sustainable farming and consumption practices with positive impact on greenhouse gas emissions • Strategy for forest management planning and prevention of deforestation

For a discussion on alternative carbon-free options, see the main report.

Methodology

Low-carbon policy package