CEPS’ energy, resources, and climate change unit (ERCC) engages in ongoing policy research on the EU’s transition to a net-zero economy. Our policy work promotes an informed debate and contributes to the development of evidence-based solutions to energy, resources, climate change and geopolitical challenges for Europe, both now and towards 2050 and beyond. Through our research and engagement with policymakers, and industrial and civil society stakeholders, we strive to produce policy insights that are grounded in sound evidence and data-driven research.
Thematic areas
The war in Ukraine and the ensuing energy crisis have impacted the European economy and put domestic energy-intensive industries under severe pressure. In response, EU policymakers have reaffirmed their commitment to the Green Deal, recognising the urgent need for an accelerated energy transition to achieve decarbonisation, enhance industrial competitiveness, and bolster energy security in a just and fair manner.
The CEPS ERCC unit focuses its policy work on the following thematic areas:
 ENERGY BETWEEN CRISIS AND TRANSITION |  COMPETITIVENESS AND SUSTAINABILITY How to enhance the competitiveness of green industries in the EU, while ensuring their sustainability, circularity, and resilience | ||
 SUSTAINABLE RESOURCES AND CIRCULAR ECONOMY Ways to move towards new industrial ecosystems where resources are used in more efficient ways |  GREEN DEAL DIPLOMACY
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Against the background of the ongoing energy crisis we focus our work on evaluating natural gas patterns and identifying policy solutions for the high and volatile energy prices. We also closely monitor the ongoing discussions about the reform of the electricity market design.
Furthermore, in view of the REPowerEU’s call to double down on renewable installations, we examine challenges and options for up taking offshore wind energy. We, particularly, focus on EU regions other than North Sea, where offshore wind is less advanced.
Selected publications:
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Industrial decarbonisation is one of the core challenges for the EU to reach climate neutrality. With the rapid decarbonisation of the power sector, an increasing share of ETS emissions are linked to energy-intensive industry. In recent years, industrial policies are also making a comeback in Europe. We continue to assess the policy mix that best enables Europe’s industries to transform to climate neutrality and for its green producers to be competitive. We also look at the role of relevant low-carbon technologies and infrastructure to achieve this industrial transformation.
The interplay of the competitiveness, trade and sustainability of EU green industries is also discussed as part of the CEPS Industrial Policy Taskforce.
- Carbon pricing (EU ETS)
- Carbon Capture and Storage (CCS), hydrogen, electrification
- Negative emissions and carbon dioxide removal
- Industrial policy and the Cleantech economy
Selected publications:
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Moving towards a sustainable economic system where resources are used more efficiently has become a key EU policy priority in recent years. As recognised by the EU industrial strategy, improving circularity and ensuring access to resources is also important for sustaining EU industrial leadership in green technologies. Our work focuses in analysing the conditions and policy options for developing sustainable industrial ecosystems in a range of sectors including batteries and automotive, electronics, plastics, steel and cement. One example of work in this domain is our Chemical Recycling Initiative which looks into the role that these technologies can play in the EU’s unfolding industrial transformation. We also assess the challenges and conditions for developing primary and secondary EU supply of critical minerals.
Among our key priority topics in this area are the following:
- Sustainable Product Policy
- Circular and transparent industrial value chains
- Sustainable sourcing of materials
- Chemical recycling and circularity in the plastics industry
Selected publications:
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The EU has traditionally been a leader in the development of international cooperation on climate change. However, the new geopolitical environment emerging from the war in Ukraine and a range of trade-related issues including an intensifying global subsidy race for cleantech raises the question of how EU’s role should evolve. Against this background there are open questions regarding the effectiveness and democratic aspects of the international climate change regime and the EU’s role in it.
Our work involves engagement in climate, energy, and industrial cooperation discussions with key partners, including India, Japan, and the Republic of Korea. We also explore ways to revitalise the EU’s green leadership in Central Asia, countering the growing influence of the others in the region. Furthermore, we examine ways to restore and further integrate the Ukrainian and Moldovan energy systems into the EU. Ongoing discussions about climate clubs and alliances and the role of measures to guard against carbon leakage such as CBAM will also drive the future EU climate diplomacy agenda. In addition, many of the EU’s trade partners will not be satisfied with being mere resource exporters but will want to capture higher value-added parts of green industrial value chains as well.
Selected publications:
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Recent events
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