Coal Power Endangers Climate Targets: Calls for Urgent Action

Pao-Yu Oei, Claudia Kemfert, Felix Reitz and Christian von Hirschhausen

DIW Economic Bulletin, 2014, vol. 4, issue 8, 36-45

Abstract: Coal-fired power stations are responsible for around a third of Germany’s carbon emissions. Failure to reduce the persistently high level of coal-fired power generation threatens Germany’s climate targets for 2020 and 2050 and undermines a sustainable energy transition. Calculations by DIW Berlin and other expert opinions prove that, in the long term, lignite, in particular, is no longer relevant for the German energy system. However, if there is no significant increase in the price of CO2 emission certificates in the near future, a market-driven transition from coal to less CO2-intensive energy sources, such as natural gas, is unlikely to occur. Presently, a number of options for reducing the level of power generated by coal are being dicussed. Along with the reform of the Emissions Trading System (ETS), proposals also include minimum energy efficiency levels or greater flexibility requirements, national minimum prices for CO2 emission certificates, capacity mechanisms, a residual emissions cap for coal-fired power stations, emissions performance standards, and network development planning that respects the climate targets. The proposals address both existing and planned coal power plants.

Keywords: Energy transition; lignite; coal; policy instruments; ETS (search for similar items in EconPapers)
JEL-codes: L71 L94 Q48 Q52 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_ ... n_bull_2014-08-5.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:diw:diwdeb:2014-8-5

Access Statistics for this article

More articles in DIW Economic Bulletin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().