E.ON study: Climate targets in 2030 achievalbe with ambitious CO2 price
"I am convinced that the involvement of citizens and energy customers is the central benchmark of good climate-change policy. And this is what the CO2 price offers".
With this message E.ON CEO Johannes Teyssen addressed more than 150 guests from politics in Berlin at our Parliamentary Evening on October 16.
He has long advocated that CO2 should have a price - with a model that unburdens citizens where energy is already green and gives clear price signals where fossil fuels are still being used. Such a measure, combined with society’s wish for climate protection and digitization, would be the central driver for an energy turnaround in Germany that goes beyond the pure electricity sector. It makes an integrated energy turnaround possible that takes both transport and heat into account. And this is the only way to achieve the German climate targets for 2030 and 2050.
In Berlin, E.ON presented a study on the effects of CO2 prices on the building, transport and energy sectors - prepared by the Institute for Energy Economics at the University of Cologne GmbH (EWI) and the Institute for Future Energy Consumer Needs and Behavior (FCN) of the E.ON Energy Research Center (E.ON ERC) and RWTH Aachen University.
The results in a nutshell:
- Without additional measures, we won’t reach the climate targets for 2030 and 2050 .
- The introduction of CO2 pricing has increased the use of heat pumps in the building sector, and gas and oil heating systems are declining.
- In the transport sector, e-mobility and hybrid technologies are increasingly being used, and the proportion of diesel vehicles is also falling sharply due to the discontinuation of tax privileges.
- Nevertheless, the sectoral climate targets in the building and transport sector won’t be achieved in 2030 with CO2 prices of 80 €/t and 96 €/t respectively.
- The national climate target of 2030 will be achieved, as the electricity sector will make a disproportionate contribution to reducing emissions due to the minimum price in the EU ETS.
- In order to achieve the reduction targets in 2050, a CO2 price is therefore required that is sufficiently high to stimulate the use of synthetic fuels.
- The CO2 pricing leads to surpluses in the German federal budget, which can be used for further reductions in the electricity price or climate-impacting measures, e.g. in industry.
"With this study, we want to give some important momentum to the debate. We want to dynamically further develop our proposal with a view to 2050. It was important for us to show what a CO2 price consistently developed until 2050 and a reduction in the price of electricity will actually mean for companies and citizens in terms of investment and consumption behavior. Both regarding Germany's climate footprint, and in terms of government earnings,"
Johannes Teyssen, CEO
Hopefully, this has made you curious about the detailed results of the study, which you can download here (German only):