EU Carbon Pricing Reform Slashes Climate Policy Costs, Boosts Member State Gains
The article explores how setting a minimum price for carbon emissions in Europe's trading system could affect costs and benefits. By studying different scenarios using a detailed model, the research discovered that having a moderate price floor can actually make it cheaper to tackle climate change in the EU by around thirty percent. This approach could make carbon pricing across the EU more consistent and fair, with most countries benefiting from the change. So, introducing a minimum price on carbon emissions might be a smart way to make climate policy in Europe more effective and budget-friendly.