ERCST

EU ETS Directive after trilogues: Discussion with Beatriz Yordi and roundtable
2023-01-11 16:00 - 17:30 (Europe/Paris) | University Foundation, Rue d’Egmont, 11, Brussels, 1000, Belgium
The ETS has emerged as the backbone of EU Climate Action and, especially in the last two years, as a crucial driver of decarbonisation. The Commission proposal to review the EU ETS Directive aimed at aligning the emissions pathway of the ETS sectors with the new EU climate targets. Throughout the next decade, the ETS is required to both enable a deep decarbonisation of the power sector and to tackle industry’s emissions, while avoiding carbon leakage.
Following the adoption of the EU ETS Directive in 2022, this event took stock of the final shape of the legislative text.
Following the presentation by DG CLIMA of the adopted EU ETS Directive, the reactions from high level speakers will be followed by questions from the audience that addressed:
· Ambition, cap and Linear Reduction Factor (LRF).
· Carbon leakage, free allocation and indirect cost compensation.
· Role of non-compliant entities and transparency.
· Extension of carbon pricing to new sectors.
· Market Stability Reserve (MSR).
This event provided a first opportunity to exchange views on the adopted provisions.
Agenda

EU CBAM after Trilogues: Discussion with Gerassimos Thomas and roundtable
2023-01-19 15:00 - 16:30 | University Foundation, Rue d’Egmont, 11, Brussels, 1000, Belgium
On December 13 the European institutions reached a provisional agreement in the CBAM trilogues. The transitional phase of the Carbon Border Adjustment Mechanism will start in October 2023, with actual implementation starting from 2026. The final details were yet to be concluded at this stage.

This event, which is part of the ERCST CBAM Programme, discussed the agreement reached in December as well as what is next with Gerassimos Thomas, Director General at DG TAXUD as well as a roundtable which included:

S. Åkerfeldt
A. Georgescu
H. Lösch

The discussion also included the ERCST CBAM team (Andrei Marcu, Aaron Cosbey and Michael Mehling).
Agenda Recording

Corporate Sustainability Due Diligence – how to make it work?
2023-02-01 10:00 - 12:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
The Due Diligence Directive Directive is part of the unfolding EU corporate sustainability landscape which aims at integrating sustainability to strategies and everyday activity of large undertakings. Among them the CSDDD is a special case. It focuses on environmental and human rights impacts of businesses, but it also introduces an obligation for large companies to ensure that their business model and strategy are aligned with the Paris Agreement objectives, including the 1.5°C commitment. In contrast to other elements of the sustainability framework (e.g. SFDR, CSRD/ESRS, Taxonomy) CSDDD goes beyond the disclosure requirements and introduces the obligation for companies to actively manage those issues: identify, prevent, end, mitigate.
In 2023 the co-legislators and the Commission started meeting for the trilogues to negotiate the final shape of this legal act. To make the due diligence scheme workable the EU institutions will have to clarify and reconcile many issues, including how to prepare and implement transition plans, the scope of liability and boundaries of covered risks, impact on SMEs, or interplay with national and international schemes and commitments and other corporate sustainability requirements.
The event aimed at identifying the key issues necessary to make the corporate sustainability due diligence workable.
Agenda ERCST Slides

The inclusion of hydrogen in the EU CBAM
2023-02-01 15:00 - 16:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
On December 13th the European Parliament and the Council reached a political agreement to introduce an EU Carbon Border Adjustment Mechanism. Although not part of the initial European Commission Proposal, CBAM will also apply to hydrogen together with cement, iron and steel, aluminium, fertilisers, and electricity.
During this meeting we took stock of the implications of the inclusion of hydrogen in the EU-CBAM. This preliminary discussion and exchange of ideas informed an ERCST report that built on the same methodological approach used by ERCST for the analysis of other sectors (i.a. chemicals, electricity, fertilisers, ferrous metals etc.).
Agenda ERCST Slides ERCST Sectorial Deep Dive Olivier Imbault Slides

Expert Consultation: 2023 State of the EU ETS Report - by invitation only
2023-03-02 10:30 - 12:30 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
The ERCST hosted brainstorming meeting with a small group of invited stakeholders and policy makers, which brainstormed on the presentation of the 2023 State of the EU ETS Report[1].
It was the eight annual report on the State of the EU ETS and built on the reports produced by this group of authors, and other partners, in the last six years. The 2022 edition is available through this link.
The topics/chapter presentations that were discussed are:

Regulatory developments (EU and international)
Environmental delivery
Socio-Economic delivery
Market functioning
Market Sentiment
Competitiveness and carbon leakage

For each topic, the authors presented the expected content, which allowed for a brainstorming discussion with stakeholders to address any gaps, or make any corrections needed, ahead of the final presentation of the report.
Agenda
[1] The 2023 State of the EU ETS Report is a joint effort between ERCST, BloombergNEF, the Wegener Centre for climate and global change at the University of Graz and EcoAct.

The inclusion of hydrogen in the EU CBAM, ERCST's assessment
2023-03-07 15:00 - 17:00 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
On December 13th the European Parliament and the Council reached a political agreement to introduce an EU Carbon Border Adjustment Mechanism. Although not part of the initial European Commission Proposal, CBAM will also apply to hydrogen together with cement, iron and steel, aluminium, fertilisers, and electricity.
During this meeting ERCST presented the assessment’s conclusions concerning the rationale and implications of the hydrogen inclusion in the EU CBAM. This assessment built on the methodology used by ERCST for the analysis of other sectors (See: CBAM Sectorial Deep Dive) and on the discussions held during ERCST public meeting on February 1st.
This meeting started by a presentation by ERCST’s CBAM team outlining some of the assessment’s conclusions, followed by a panel discussion, Q&A and debate.
Agenda ERCST Slides

The paths to decarbonised and sustainable transport: Stakeholders' meeting
2023-03-15 15:00 - 17:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
The objective of the project is to analyse the current pathways emerging from EU policy for decarbonisation of heavy-duty road transportation including links to the other transportation modes and propose, if necessary and appropriate, complementary and/or alternative policy pathways. They will be underpinned by the EU objective of climate neutrality stemming from the EU Climate Law. In comparing various decarbonisation option, the project will take due account of the full Life Cycle Assessment (LCA) of GHG emissions and the cumulative reduction of CO2 emissions over time.
The deliverables of the project are intended to support the discussion on decarbonization of transport in the next policy cycle.
The first deliverable of the project addressed the following question:
A) What influences the determination of pathways for mobility decarbonization?

Identify the desired outcomes (KPIs) that were used in defining the current pathways for mobility decarbonization
Outline changes in social environment (COVID, energy crisis, geopolitical, etc.)
Determine new desired outcomes (KPIs) that need to be considered under current circumstances

Agenda ERCST Slides

CCUS in the net-zero transition
2023-03-16 15:00 - 17:00 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
To achieve the goal of the Paris Agreement of pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, countries must severely reduce their emissions and reach a net zero economy by 2050.
In this framework, carbon capture, utilisation, and storage (CCUS) technology is necessary to achieve ambitious climate targets. However, its deployment is still way below the needed levels depicted in various global scenarios. As 2050 is approaching, it is now to bring this technology under the spotlight to incentivise investments, development, and cooperation at an international scale to put it on track for achieving climate neutrality at a global level.
In this event, the role of CCUS in different climate neutrality scenarios and its role in different policy mixes was explored, bringing over regional perspectives on how this role has been translated and the technology implemented in different regulatory jurisdictions.
Agenda BP Slides IEA Slides CATF Slides Norsk Hydro Slides
Government of India Slides Recording

Expert Consultation: CBAM and Flanking Measures for Industrial Decarbonisation
2023-03-20 15:00 - 17:00
In December 2022, the European institutions reached a provisional agreement in the CBAM trilogues. The transitional phase of the Carbon Border Adjustment Mechanism started in October 2023, with actual implementation starting from 2026. In this roundtable, we discussed the function of the CBAM in a portfolio of instruments for industrial decarbonisation, focusing on the role of additional support policies in an evolving global context.
This roundtable discussion brought together global experts in the areas of economics, law, and policy to assess existing proposals of how to treat non-pricing policies in the EU CBAM.

EU Climate Policy and Electricity Market
2023-03-27 15:30 - 17:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
During this meeting, ERCST intended to present the results of a research exercise on developing a climate change lens to analyse and inform the EU debate on reforming the electricity market design and on the discussions held during private ERCST working group consultations in January and February.
This meeting started with a presentation by ERCST’s team outlining the results of the development work, followed by a panel discussion and debate.
Agenda ERCST Slides EDP Slides

External Event: IETA European Climate Summit - CBAM: A New Era for Global Trade Order
2023-03-29 15:30 - 16:30
ERCST’s Executive Director, Andrei Marcu, moderated the Deep Dive session Carbon Border Adjustment Mechanism: A New Era for Global Trade Order, which is part of IETA’s European Climate Summit in Lisbon.
Climate, trade and competitiveness is reaching a fever pitch across the Atlantic. The long-debated CBAM is set to become a reality. This session looked at US’ Inflation Reduction Act (IRA) and the European Green Deal Industrial Plan, as well as delve into the details of EU’s CBAM. It tackled how to protect export industries from potential carbon leakage, looked at ways to prevent circumvention risks, compatibility with WTO regulations, and the global community’s response to the world’s first carbon border tax.
You can find more information about the European Climate Summit on IETA’s website.

Hydrogen: State of play of the EU hydrogen policy & regulatory framework
2023-03-30 09:30 - 11:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This workstream consists of a continuous series of meetings and accompanying publications which aim to bring together different stakeholders to take stock of key policy and regulatory developments of the EU hydrogen policy and regulatory framework identified by ERCST. It also aims to put forward recommendations and propose innovative solutions to existing policy and regulatory bottle necks.
With most of dossiers reaching the final stages of the legislative process and new elements being added (i.a. EU electricity market reform, Net-Zero industrial act, EU H2 bank), this meeting intended to take stock of recent policy and regulatory developments for hydrogen in the EU.
Agenda Slides

EU CCUS policy: Net-Zero Industry Act & upcoming Commission’s Communication
2023-04-20 14:30 - 17:00 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
To achieve the goal of the Paris Agreement of pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, countries must severely reduce their emissions and reach a net zero economy by 2050. In this framework, carbon capture, utilisation, and storage (CCUS) technology is necessary to achieve ambitious climate targets. However, its deployment is still way below the needed levels.
This event aimed at exploring:

The CCS provisions in the Net-Zero Industry Act;
The elements that ought to be included in the upcoming Commission’s strategy on CCUS.

In the EU, interest in CCUS is growing. In particular, 2023 seems to be an important year: the Net-Zero Industry Act introduces a provision for an injection target capacity while preparing for issuing a Communication on a CCUS strategy. Internationally, CCUS is also increasingly capturing the attention of policymakers. Nevertheless, the EU is still far away from achieving the level of deployment of CCUS technology that is required for achieving its climate targets and climate neutrality. There are still a lot of unknowns and elements that need to fall in place.
Agenda ERCST Slides

2023 State of the EU ETS Report - Launch Event
2023-04-26 15:00 - 17:00 | Residence Palace. Rue de la Loi 155, 1000 Bruxelles., Residence Palace. Rue de la Loi 155, Bruxelles, 1000, Belgium
This was the launch event of the 2023 State of the EU ETS Report1. During this event the report was presented by the authors and discussed by commentators. This was be the eighth annual report on the State of the EU ETS and builds on the reports produced by this group of authors, and other partners, in the last six years. The 2022 edition is available through this link.
The European Commission is required to annually assess, according to the EU ETS Directive, the functioning of the EU ETS and report back to the EU Parliament and Council. While the European Commission has its role to play in providing an official report, it is also important that independent review and assessment of the functioning and delivery of the EU ETS takes place.
The annual “State of the EU ETS” Report aims to provide such an independent contribution to the policy debate, which is needed to ensure that the EU ETS is “fit for purpose”. The Report is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data.
This event covered the 2023 Report. This year’s edition reflects the track record of the ETS last year and the revised EU ETS Directive to be adopted in mid-2023, its expected impact on the EU ETS, and the role the ETS is expected to play in the longer term.
1 The 2023 State of the EU ETS Report is a joint effort between ERCST, BloombergNEF, the Wegener Centre for climate and global change at the University of Graz and EcoAct.
Agenda Publication

Review of decarbonization policies for heavy-duty transport: the ERCST analytical framework
2023-05-11 15:00 - 17:00 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
The objective of the ERCST project is to analyze the current pathways emerging from EU policy for decarbonisation of heavy-duty road transportation and propose, if necessary and appropriate, complementary and/or alternative policy pathways. They will be underpinned by the EU objective of climate neutrality stemming from the EU Climate Law.
The EU Sustainable and Smart Mobility strategy formulates the objective of 90% of emission reduction in the transport sector by 2050. It assumes developing many policies and technological solutions along the principle of technological neutrality and phasing out of fossil fuels. None of those policies alone is a silver bullet. Only the deployment of many complementary solutions and creating the space for innovation gives the chance to meet the ambitious decarbonisation targets in line with the European political and legal commitment for the climate neutrality by 2050 stemming from the European Green Deal and the EU Climate Law.
The first report set the ERCST analytical framework and address the following question: what influences the determination of pathways for mobility decarbonization?
It a) identified the desired outcomes that were used in defining the current pathways for mobility decarbonization, b) outlined changes in the economic, political and social environment and c) determined new desired outcomes that need to be considered under current circumstances.
Agenda Slides

Border Carbon Adjustment in the EU - CBAM in a portfolio of instruments for industrial decarbonization
2023-05-16 15:00 - 17:00 | ERCST Rue Archimède 61, Bruxelles, Rue Archimède 61, Bruxelles, 1000, Belgium
The EU ETS and CBAM are key drivers to achieve industrial decarbonization and secure a prosperous and industrial EU, but they must be accompanied by flanking measures to be effective in a context where they must face other decarbonisation approaches such as the Inflation Reduction Act (IRA) in the US and significant subsidies for green industry in China. This session discussed proposed and potential flanking measures that the EU needs to put in place based on the following questions:

Is the objective of CBAM to: a) to address carbon leakage and competitiveness, or b) be a more comprehensive approach to promote industrial decarbonization?
What elements of the objective are covered by the ETS and CBAM, and what are the gaps?
To what extent do the existing or planned flanking measures in the EU contribute to filing those gaps?
How does the combination of ETS and CBAM and flanking measures in the EU compare to other approaches, such as the subsidies under the US IRA and the China Five-Year Plan, in reaching industrial decarbonization while ensuring a prosperous and industrial EU?

Considering these policy questions, this roundtable discussion brought together experts in the areas of economics, law, and policy to address the evolving context of trade and industrial decarbonization.
Agenda Slides

EU Climate Policy & Electricity Market Design
2023-05-17 14:30 - 16:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
The ERCST workstream on “EU Climate Policy and Electricity Market” provides analytical input on the interactions between EU climate policy and electricity market. Within the scope of the first part of this project (1st quarter of 2023), the ERCST team has developed a framework matrix (Annex 1) for analysing the elements of the EC proposal on electricity market reform through a climate change lens.
Following on this preliminary work, ERCST focused on discrete interaction’s cells of this matrix framework. During this event, the attention was given to the short-term pricing elements (including marginal pricing and market interventions) and their interactions with relevant climate policies (ETS, RED…) to understand whether/to which extent these provide short-term operational signals for decarbonization.
This meeting started by a presentation by ERCST which provided the discussion background. This was followed by preliminary remarks from the European Parliament. Then followed a panel discussion during which speakers shared their views and provide their opinions on the proposal. Interventions and debate from the audience will take place during the following Q&A session.
Agenda ERCST Slides

I4C 2023: CCUS in the net-zero transition
2023-05-24 11:45 - 12:35 | Bilbao Exhibition Centre Azkue Kalea, 1 48902 Barakaldo Bizkaia, Spain, Azkue Kalea, 1, Barakaldo, Bizkaia, 48902, Spain
This event was selected as a workshop within Innovative4Climate (I4C) 2023, the World Bank Group’s annual global conference on climate finance, carbon markets and investment. The full programme is available here.
To achieve the goal of the Paris Agreement, countries must drastically reduce their emissions and achieve a net-zero economy by 2050.
Although carbon removals have been designated a key technology to achieve the 2050 climate neutrality target, the actual deployment is still far below the necessary levels indicated in various global scenarios for meeting this international goal. Also, full deployment cannot be reached if the scale of this technology remains only at national and regional levels, as storage capacity is not equally distributed across the globe. For these reasons, international cooperation is necessary, and Article 6 of the Paris Agreement can also be one of the tools for the international carbon market for removals. Also, a strong political message from COP28 on this topic is critical to maintain the momentum.
In this event, ERCST explored the role of carbon removals in different climate neutrality scenarios and how regulatory frameworks in different countries are giving value to this technology.
Agenda ERCST Slides Publication 1 Publication 2

The EU Hydrogen Market: Fit for investments?
2023-05-31 14:30 - 16:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in-person meeting.
During the previous ERCST hydrogen roundtable discussion, the different pieces of the EU H2 policy and regulatory framework were assessed, focusing on its readiness and capacity to adapt to different ambition levels. The discussion was also intended to explore if the framework has been completed or whether there are still some bottlenecks that should be addressed.
As concluded in the meeting, most of the different pieces of the hydrogen regulatory framework have been proposed and find themselves in final stages of the legislative process. In this sense, it could be argued that the proposed framework is comprehensive and that its architecture has been carefully designed making sure that most of the elements included in the European Hydrogen strategy will be part of this framework.
Beyond its fine architecture, during this discussion we wanted to question whether the proposed framework can be regarded not just as complete or comprehensive, but also as an attractive and practical tool to attract investments.
Questions for discussion:

Is the proposed regulatory framework practical and attractive enough to direct hydrogen investments to the EU?
Have enough financial means been provided to make sure EU companies will lead the transition towards a decarbonized hydrogen market?
Are the financial tools and instruments employed fit for purpose?

Agenda ERCST Slides

ERCST Side Event at Bonn Climate Change Conference - Mobilizing Private Investments: The Role of the Private Sector and Carbon Markets in the GST
2023-06-09 16:45 - 18:00 | World Conference Center Bonn, Platz d. Vereinten Nationen 2, 53113 Bonn, Germany, Platz d. Vereinten Nationen 2, Bonn, 53113, Germany
This side event was hosted at the Bonn Climate Change Conference in collaboration with with ICC and IETA
Venue: World Conference Center Bonn, Platz d. Vereinten Nationen 2, 53113 Bonn, Germany, Kaminzimmer room
Carbon pricing and market-based instruments, including cooperative approaches under Article 6 of the Paris Agreement, represent key vehicles facilitating private sector investments and driving climate action. Ahead of the Global Stocktake (GST) at COP28, this public-private dialogue aimed to explore the importance of expanding market-based carbon pricing instruments and international cooperation to mobilize finance flows, scale up reduction and removal activities and increase NDC ambition.

EU Climate Policy & Electricity Market
2023-06-27 14:30 - 16:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This was a hybrid event.
The ERCST workstream on “EU Climate Policy and Electricity Market” provides analytical input on the interactions between EU climate policy and electricity market. ERCST has developed a framework matrix (Annex 1) for analysing the elements of the EC proposal on electricity market reform through a climate change lens.
Following on this preliminary work, ERCST then focused on discrete interaction’s cells of this matrix framework. During our April event, the focus was given to short term pricing mechanisms (both the EU marginal pricing mechanism and emergency market interventions).
In this event, the attention was given to medium (CRMs) to long term markets and instruments and markets (CfDs, PPAs, and forward markets) and their interactions with relevant climate policies (ETS, RED…) to understand whether/to which extent these provide signals for decarbonization.
This meeting started by a ERCST presentation which provided the discussion background. This was followed by preliminary remarks from the European Commission and the European Parliament. Then followed a panel discussion during which speakers shared their views and provided their opinions on the proposal. Interventions and debate from the audience took place during the following Q&A session.
Agenda ERCST Slides

The paths to decarbonized and sustainable transport - Discussing ENVI position on the European Commission proposal strengthening the CO2 standards for heavy-duty vehicles
2023-06-29 15:00 - 17:00 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This was a hybrid event.
On 26 April, the European Parliament’s ENVI Committee met to exchange views on the Commission proposal strengthening the CO2 standards for new heavy-duty vehicles (HDVs).
This event, which is a part of the ERCST’s Paths to Decarbonized and Sustainable Transport Programme, explored the position of the Parliament’s ENVI committee on the proposal, through the lens developed under the Report 1, before other Members of the European Parliament propose amendments on the 4th of July. The meeting discussed the European Commission’s target for a 90% emissions reduction by 2040.
The ERCST project endorses the EU’s goal for a net zero energy system and heavy-duty vehicle sector by 2050, viewing zero emission vehicles as critical to achieving this. The project aims to evaluate current legislative measures, understand their impact on stakeholders, and explore the economic, environmental, and social effects of these policies while considering alternative or supplementary pathways to efficiently meet the set targets.
Agenda ERCST presentation

International Townhall on operationalising CBAM
2023-07-06 14:00 - 16:30
Online event.
Following the CBAM regulation officially entering into force on the 16 May 2023 we gathered at this International Townhall to explore the practical implications of the Carbon Border Adjustment Mechanism (CBAM). The event focused on when the rubber hits the road, providing insights into the implications of operationalising CBAM and the necessary steps to take, such as the method of calculating of embedded emissions.
This session, convened by ERCST on the basis of its extensive work on the EU CBAM, brought together global thought leaders on international climate cooperation and CBAM to discuss the trajectory of CBAM implementation.
Agenda ERCST Slides Recording

Commission's public consultation on 'Industrial Carbon Management'
2023-07-20 15:00 - 16:30
This was an online event.
In 2023, CCUS and carbon removal technology are gaining considerable momentum in the European Union thanks to the new legislative proposals developed by the European Commission, such as the Certification Framework for Carbon Removal and the Net-Zero Industry Act.
At the same time, at the CCUS Forum held in October 2022, the Commission announced the intention to prepare its strategy for developing and deploying this technology by the end of 2023. In this regard, the Commission has launched a public consultation to collect inputs from the general public and stakeholders on views and opinions on various CCS, CCU and Industrial Carbon Removals-related issues, including specific policy recommendations. The consultation can be found at this link (deadline: August, 31).
The objective of this meeting was to discuss topics surrounding the Commission’s consultation ahead of ERCST’s submission.
Agenda

Industrial Carbon Management: submission review
2023-09-11 15:00 - 16:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This was an in-person event.
In 2023, CCUS and carbon removal technology are gaining considerable momentum in the European Union thanks to the new legislative proposals developed by the European Commission, such as the Certification Framework for Carbon Removal and the Net-Zero Industry Act.
At the same time, at the CCUS Forum held in October 2022, the Commission announced the intention to prepare its strategy for developing and deploying this technology by the end of 2023. In this regard, the Commission has collected inputs from the general public and stakeholders on views and opinions on various CCS, CCU and Industrial Carbon Removals-related issues, including specific policy recommendations until August 31st. The consultation can be found at this link.
The objective of this meeting was to discuss the submissions of different stakeholders to the Commission’s public consultation to understand the overall opinion of stakeholders and to reflect on how the strategy will be designed.
Agenda ERCST Slides

EU Climate Policy and Electricity Market
2023-09-12 14:30 - 16:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This was a public event under Chatham House rules – hybrid format.
The ERCST workstream on “EU Climate Policy and Electricity Market” provides analytical input on the interactions between EU climate policy and electricity market. ERCST has developed a framework matrix (Annex 1) for analysing the elements of the EC proposal on electricity market reform through a climate change lens.
Following on this preliminary work, ERCST is now focusing on discrete interaction’s cells of this matrix framework. During our past events, we focused on:
1. Short-term pricing mechanisms (the EU marginal pricing mechanism and emergency market interventions).
2. Medium- (CRMs) to long-term instruments (CfDs, PPAs) and forward markets.
In this event, we focused on to long-term instruments and their interactions with relevant climate policies (ETS, RED…) to understand how this interaction impact the EU industries’ competitiveness.
The meeting began with an ERCST presentation setting the discussion’s context, followed by opening remarks from the European Commission and the European Economic and Social Committee. A panel discussion then allowed speakers to share their views, with audience interventions and debate occurring during the subsequent Q&A session.
Agenda ERCST Slides

ERCST @ IETA North America Climate Summit & Climate Week NYC: The role of CCS and removals in international carbon markets
2023-09-20 19:45 - 20:45 | The Westin New York at Times Square, 270 W 43rd St, New York, NY, 10036, United States
This event occurred during the IETA North America Summit and Climate Week NYC at The Westin at Times Square New York – Room Gershwin 2 (4th floor).
At this event, ERCST stocktaked on the role and importance of CCUS technologies and removals in achieving NDCs and net zero goals through international cooperation and political support. It further discussed the importance of its inclusion in Article 6 as part of the toolbox for large-scale support and implementation.
Event materials:
Agenda ERCST Slides

Stakeholders' meeting - The Paths to Decarbonized and Sustainable Transport -outline of the second report
2023-09-26 15:00 - 17:00 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This was a hybrid meeting.
The ERCST project seeks to evaluate EU policy pathways for decarbonizing heavy-duty road transportation and suggest new or complementary strategies aligned with the EU’s climate neutrality goal.
The first report set the ERCST analytical framework, assessing the factors shaping mobility decarbonization and identifying desired outcomes against the backdrop of evolving economic, political, and social environments.
This event presented the outline of the ERCST second report that assessed current legislative pathways to decarbonise heavy-duty transport and made recommendations for new pathways. It looked at key policy actions that can have an impact on the heavy-duty vehicles transport sector. It gave, amongst others, thorough considerations to:

The cumulative reduction of CO2 emissions over time, to meet the EU decarbonisation target.
The EU security of supply
The contribution to the resilience of the EU economy
The societal impacts – on jobs, inclusivity, and affordability of mobility for citizens and businesses.

The main outcomes of the roundtable discussions have been considered in the final ERCST second report, which was presented in a public event on 12th October 2023.
Agenda ERCST slides

Expert Stakeholder Consultation: European Carbon Bank
2023-10-02 13:00 - 14:30 | online
This was an online event.
The European Climate Law mandates a minimum 55% reduction in GHGs by 2030 from 1990 levels and targets Net Zero by 2050, prompting the European Commission to set a 2040 climate goal. An upcoming 2024 communication will assess the impact and address carbon removals essential for the “fit for 55” and 2050 Net Zero goals.
Under the current framework, the EU ETS plans to issue its final emissions permits by 2039, with future residual emissions offset by carbon removals. Yet, the current EU policy lacks a specific framework for this. There’s advocacy for establishing a European Carbon Bank, an Innovation Authority, and a Carbon Removal Certification Authority to enhance the EU’s carbon market structure.
A European Carbon Bank could optimize carbon market operations, support emission reductions, and aid the global shift to a low-carbon economy, ensuring market liquidity and addressing ETS 1 supply constraints by the 2030s.
This meeting was intended as a roundtable with a small group of invited stakeholders and policy makers to brainstorm on the potential aim and governance of a Carbon Bank in the EU, as well as its practical shape and implications on the current EU Climate architecture.
Agenda Slides Recording

Renewable hydrogen: what way forward?
2023-10-03 14:30 - 16:30 | ERCST, Rue Archimède 61, Bruxelles, 1000, Belgium
This was a public hybrid event under Chatham House rules
In the last consultation organised by ERCST, stakeholders identified a number of barriers to the uptake of renewable hydrogen. On the cost competitiveness side, renewable hydrogen in the EU still faces challenges in competing with hydrogen produced from fossil fuels, as well as with competing schemes overseas. This is due to performance factors and the availability of renewable energy coherent with the industry’s baseload needs. These factors hinder the healthy and market-driven development of renewable hydrogen capacity, dampening investors’ appetite. On the demand side, concerns related to infrastructure, costs, and flexibility further hinder the take-off of the EU renewable hydrogen market.
This roundtable aimed to leverage the insights of invited speakers to explore strategies required to bridge the gap between the current and targeted levels of renewable hydrogen production and consumption in the EU. Key topics addressed included the importance of flexibility, technological neutrality, hedging and de-risking mechanisms, green standards, sectoral prioritisation, and state-aid financing.
Agenda ERCST slides IEA slides OIES slides
