Decarbonisation measures beyond a CO2 price
The discourse on climate policy to achieve internationally agreed climate targets in Germany is often narrowed down to the instrument of CO2 pricing. A price for the emission of climate-damaging carbon dioxide is an essential building block for achieving the long-term decarbonisation of all sectors.
However, the current study by DIW Econ with Prof. Dr Claudia Kemfert, Head of the Department of Energy, Transport and Environment at DIW, commissioned by Greenpeace, shows that a price on CO2 by itself is by far not sufficient to achieve Germany’s agreed climate goals. This can only be achieved with the help of a policy mix of CO2 pricing and complementary regulatory instruments and measures.
The study explains the necessity of a mix of instruments in terms of economic theory and shows in the sectors of energy and transport, which together currently cause around 50 % of greenhouse gas emissions in Germany, which complementary measures are available to German policy-makers to achieve the German climate targets. Particularly in the transport and energy sectors, e-mobility and renewable energies are technologies that can be used to initiate rapid and targeted decarbonisation.
PDF Download of this publication