Are we about to be locked into the wrong policy? (Open Europe)
Open Europe has produced the first independent estimate of the cost and wider effects of the EU’s new package of climate change measures, currently under negotiation. The outcome of the package is of particular concern at a time when Europe stands on the brink of an economic slowdown, and in some member states, recession.
The plan is the most ambitious EU programme since the launch of the euro. We estimate that the cost of the package as a whole will be huge: more than 73 billion euro per year by 2020 for the EU 25, and £9bn per year for the UK.
Importantly, the study concludes that the EU’s proposals are an overpriced solution to climate change, largely because they artificially drive investment towards very high-cost methods of cutting carbon. This means we will pay far more than necessary in fighting climate change; or put another way, we could spend the same amount of money and reduce emissions far more.
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