Managing interactions between carbon pricing and existing energy policies

Managing interactions  between carbon pricing and existing energy policies : Guidance for policymakers / Christina Hood. Paris : IEA, 2013, 44 p.

http://www.iea.org/publications/insights/insightpublications/ManagingInteractionsCarbonPricing_FINAL.pdf

Carbon pricing can be a key policy tool to help countries move their energy sectors onto a cleaner development path. One important issue to consider when introducing carbon pricing is how it will integrate with other energy policies that also reduce greenhouse gas emissions, including policies to support low-carbon technologies (such as renewable energy) and energy efficiency programmes.
Poor policy integration can undermine energy security and affordability, and affect the performance of renewable energy policies and energy markets. Climate objectives can also be undermined, through low and uncertain carbon prices and the risk of stop-start policy. (© IEA)

Contents :

Energy-climate policy packages for greenhouse gas emissions reductions

  • A brief introduction to emissions-reducing policies
  • Key climate policies for the energy sector
  • Key energy policies that affect emissions
  • Underpinning policies: markets, infrastructure and finance
  • The case for packages of energy-climate policies
  • Energy efficiency policies alongside a carbon price
  • Policies to deploy clean energy supply technologies (e.g. renewable carbon price
  • Summary: policies and policy packages for emissions reductions

Interactions between carbon pricing and energy policies

  • Energy policy interactions with carbon taxes
  • Energy policy interactions with emissions trading systems
  • ETS with a fixed emissions cap (“cap and trade”)
  • ETS with output-based obligations (“baseline and credit”)
  • Negative or redundant policy combinations
  • The impact of pre-existing fuel taxes or subsidies
  • Use of carbon pricing revenue and policy interactions

Solutions for better policy integration

  • Mapping the energy and climate policy landscape
  • Managing interactions in the policy package
  • Assessing energy policies in light of the carbon price introduction
  • Managing interactions with a carbon tax
  • Managing interactions with an ETS
  • Other policies as a carbon price is phased in?
  • Balancing flexibility and certainty: policy reviews
  • Institutional issues of policy integration

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