Energy and climate consultant
Professor of Economics, Universidad Carlos III de Madrid
Head of Unit, European Commission, DG GROW
Video and audio recordings
Achieving ambitious EU climate targets requires transforming nascent domestic low-carbon industries into mature markets. While increasing carbon prices go a long way, they are unlikely to make all required investments commercially viable. One policy tool for developing low-carbon markets are commercialisation contracts. These contracts work by using public subsidies to provide sufficiently high carbon prices on a project-by-project basis such that low-carbon alternatives become economically competitive. The goal is to commercialise essential low carbon technologies more rapidly. Such contracts are already being developed at the national level and discussed at the European level.
At this event, we launched the latest policy contribution ‘Commercialisation contracts: European support for low-carbon technology deployment‘, introduced the core idea of the policy, and then discussed key design elements. That included whether or not contracts should be issued at the EU or national level, how competition for contracts should be organised, and which industries should be eligible for support.
This event was supported by the European Climate Foundation in the scope of the project Think tank Network on European Green Deal.