Economist Edenhofer on the climate proposals of EU Commission President Ursula von der Leyen

Ottmar Edenhofer, Director of the Potsdam Institute for Climate Impact Research (PIK, member of the Leibniz Association), commented on the proposal:

“If we want to rapidly stabilize our climate, reducing greenhouse gas emissions to a greater extent is absolutely the right approach taken by the EU. But formulating ambitious goals is not enough – we need concrete measures now. First and foremost this means the introduction of a minimum price on CO2 in the EU emissions trading system (ETS)  to provide incentives for investment in CO2-free technologies – as economic research shows very clearly. In addition, other sectors should be included in emissions trading, such as heating and road transport. Also, in the medium term, the ETS should be linked to existing pricing schemes, for example in China or California. Nobody in the world has the necessary strength for this – except Europe. But we have to actually do it.”

“The EU can be an international pioneer when it comes to climate change mitigation and encouraging other countries to bring their policies into line with the goals of the Paris Climate Change Agreement which has been agreed by almost all governments. The EU can do so for example by granting cheap loans to countries that in return withdraw from coal or introduce effective CO2 pricing systems; here too, scientific concepts are available. The 'EU Green Deal' is a strong initiative. But now is the time for concrete implementation so that we can protect people from the economic and health risks of climate change in a timely and socially just manner.”