Stakeholder workshop explores carbon pricing design options for the Energy Community

The first workshop in the context of stakeholder consultations on the study on carbon pricing design for the Energy Community took place on 26 March 2020. More than 80 participants, including representatives of the European Commission, national ministries, energy companies, regulatory authorities as well as NGOs and other stakeholders from all Contracting Parties, received an overview of existing carbon pricing schemes in the Contracting Parties as well as the EU Emissions Trading System and other non-EU schemes. The operation of an emission trading scheme and a carbon tax was explained in depth as well as the pros and cons of each system.

It was underlined that any carbon pricing scheme for the Energy Community must take into account the specificities of the electricity sector (including impact on generation adequacy) and general socio-economic conditions in the Contracting Parties. Another critical condition is that any mechanism adopted must allow for linking up with the EU ETS in 2030, or at a certain point in the future.

The consultant presented main assumptions for a baseline scenario and policy decision options for a carbon pricing mechanism. The Contracting Parties’ readiness for the design and implementation of a carbon pricing mechanism was also assessed.

Participants had the opportunity to ask questions to the consultants and comment on the input data and assumptions to be used in the modelling work.

The meeting was held digitally as part of the Secretariat’s response to the COVID-19 situation and measures issued by the Austrian authorities.