Managing interactions between carbon pricing and existing energy policies
Policies to reduce greenhouse gas emissions are expanding around the world. They are being implemented to deliver countries’ own ambitions to move onto a cleaner development path, and in support of their international climate change commitments. When policymakers are developing their domestic policy packages to drive emissions reductions in the energy sector, an important issue to consider is the interaction between energy and climate policies. Poor policy integration can undermine energy policy objectives such as energy security and affordability, as well as making climate objectives more difficult to meet. Conversely, a well-integrated policy package can reduce the trade-offs and advance the synergies between energy and climate objectives. This paper focuses in particular on managing the interactions between carbon pricing and energy policies that also reduce emissions, such as policies to support low-carbon technologies (such as renewable energy) and energy efficiency programmes.