The only thing Europe can quickly do to prevent a potentially difficult winter is to actively promote energy conservation in both the residential and industrial sectors.
Europe’s gas supply security could more effectively be safeguarded by ensuring that unused alternatives are maintained.
Who should bear more and who less of the burden achieving climate policy goals?
Surging natural gas prices in Europe, driven by rising demand and tight supply, are pushing up electricity prices; to prevent volatility, governments need to commit more clearly to a low-carbon future.
Policies are needed to support green fuel switching by households; support should be phased out as the carbon price rises.
The European Union finds itself at the centre of a three-dimensional puzzle. Burdens need to be shared between 450 million citizens, 25 million businesses and EU countries in a way that is acceptable to enough of them.
To cut the cost of decarbonisation significantly, the best solution would be to provide investors with a predictable carbon price that corresponds to the envisaged decarbonisation pathway.
Rapid emission cuts need a carbon price for the whole economy. This must be introduced in careful stages.