What do Denmark and the Netherlands have in common when it comes to energy taxation? They both have effective carbon prices well above €100 per tonne, well above the EU average.

You know what they also have in common? Key energy poverty indicators well below the EU average.
You know what Romania and Bulgaria have in common when it comes to energy taxation? Effective carbon taxes close to €0 per tonne.

You know what they also have in common? Energy poverty well above the EU average.
Carbon pricing doesn't cause energy poverty. Failure to address poverty and inadequate social and housing policies do. But while good climate policies also offer solutions to our social and housing crises, failure to act on climate just locks in or exacerbates the status quo.
It is true that carbon pricing makes up a larger share of expenditures for lower income households than for higher income households. This is also reflected in relative expenditure for households across Member States with varying relative wealth.
But carbon pricing also generates revenues, which can be redistributed back to households, with progressive income effects. Research on the effect of lump-sum transfers of carbon pricing revenues back to households consistently shows that the poorest households are better off.
Moreover, governments need not stand idly by as their poorest citizens are saddled with higher costs. They can choose to invest in supporting these households in having cleaner technologies and more comfortable and energy efficient homes. They can choose to address poverty.
On top of carbon pricing revenues and national budgets, Member States have a range of additional EU sources of funding at their disposal, including the new EU Recovery Fund. Member States, can choose to invest these funds in the well-being of their citizens, a green recovery.
Last but not least, Member States can choose to recognize the varying levels of wealth in the EU and explicitly choose to provide poorer Member States with solidarity transfers from revenues collected on EU taxation of heating and transport fuels.
In short, the narrative that carbon pricing on heating and transport fuels will inevitably lead to an aggrevation of social injustices and 'Yellow Jacket' like protest movements is false. It is a choice. Just like it is a choice where we accept these social injustices today.

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More from @andreasgraf

19 Feb
This could be big! The German Ministry of Economic Affairs and Energy has just today launched a national dialogue for scaling up policy ambition to achieve climate-neutral heating by 2050. The opening thesis statements are stunning.
Thesis 1: Emissions trading will become a lead instrument for heat transition.
Thesis 2: Energy taxes, levies and surcharges have to be fundamentally reformed.
Read 9 tweets
18 Feb
'The 322 foot (98 meter) tower, whose construction was confirmed on Jan. 29 by sustainable developer UTB, the state of Berlin and the borough of Friedrichshain-Kreuzberg the will be made largely of wood.'
'If the project lives up to the progressive aspirations declared by the developer and city, WoHo could serve as a template for how to build a charismatic architectural showpiece in an up-and-coming neighborhood without exclusion or displacement.'
'Friedrichshain-Kreuzberg officials say the goal is not just to provide new housing: It is to direct Berlin, and other cities, “towards a social and ecological paradigm shift.'
Read 4 tweets
12 Oct 20
One of the more interesting aspects of this very informative new @H2Europe report is its analysis comparing the cost of producing renewable hydrogen for electrolysis projects connected to the grid vs islanded systems with direct connection of renewables.
This table provides an overview of the two schematic production scenarios. For both scenarios, key techno-economic parameters of the electrolysis were adopted based on current state-of-the-art 10,000 kW alkaline electrolysis.
For 2019, the study estimates that production costs using grid electricity in the EU (together with Norway and the UK) are in the range of €2.6 – 9.5/kg, with the average for all countries being €4.7/kg and a median of €4.2/kg.
Read 32 tweets
12 Oct 20
Die Umstellung des deutschen Mietmarkts von Kalt- auf Warmmieten kann den klimafreundlichen Umbau von Mietshäusern fördern und gleichzeitig Mieter vor teuren, ineffizienten Modernisierungen schützen.
Vorbild ist Schweden, wo seit dem Jahr 2000 eine Kombination aus steigenden CO₂-Preisen bei gleichzeitiger Einführung des Warmmieten-Prinzips gilt. Die Emissionen der dortigen Haushalte sind seither um 95 Prozent gesunken.
Die Vier Voraussetzungen für eine erfolgreiche Wärmewende sind 1) Warmmieten, 2) stetig steigende CO2-Preise auf Brennstoffe, 3) staatliche Förderung, sowie 4) verpflichtende Sanierungsfahrpläne.
Read 4 tweets
12 Oct 20
The EU Hydrogen Strategy is about scaling renewable hydrogen production to levels beyond current EU consumption levels for conventional fossil hydrogen. At 0.1% of current hydrogen production, we better get to it.
Current hydrogen demand is largely concentrated in a handful of applications, in particular diesel fuel refining and ammonia production for fertilizers.
Most of this H2 production is 'captive', meaning it is produced on site at the location of consumption. Some of it is produced as a by-product of other production processes, such as chlor-alkali production or coke oven gas. A small share is from separate 'merchant' producers.
Read 20 tweets
12 Dec 18

1/ The last two weeks I unpacked 2030 energy sector results in the @EU_Commission's new EU 'Long Term Strategy' and took a closer look at Buildings, Industry, Transport. Today, I cover what remains.

2/ Energy related emissions account for 79% of EU GHG emissions and includes the production of electricity & heat generation, and fuel combustion in industry, buildings, transport & agriculture. Other GHG emissions come from agriculture, waste & non-energy industy processes.
3/ Agriculture, Waste and Non-energy Industry also make up the other main sectors in the 'Non-ETS' Sectors outside of the scope of the EU Emissions Trading System, aside from the Transport & Buildings Sectors.
Read 26 tweets

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