EIB Energy Lending Policy Consultation

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Official EIB consultation page	https://www.eib.org/en/about/partners/cso/consultations/item/public-consultation-energy-lending-policy.htm

Structure of Document:

Background documents & relevant references (bibtex libraries)
Summary of consultation request
EIB questions & answers
Signatures

⭆ Go directly to questions and answers (click the headers)

General:

Q1: Long-term strategy: additional dimensions to include?
Q2: EIB Framework: areas where bank can improve?
Q3: Area of renewables/efficiency/energy grids: can have EIB higher impact?
Q4: How can EIB address affordability: social and regional disparities?

Energy Efficiency:

Q5: Buildings: agree with proposed approach to only fund nZEB standard from 2021?
Q6: EIB energy efficiency financial and technical assistance products: experience/advice?
Q7: Energy efficiency in SMEs: technical assistance? Which type?

Decarbonising power & heat:

Q8: Auctions / declining costs renewables: how can EIB best support those?
Q9: EPS for power generation = appropriate saveguard? Adjustment for flexibility? Exemption for EPS in developing countries appropriate?

New energy technologies and business models

Q10: How to get more targeted support for renewables? New business models with financing needs?
Q11: EIB products to support innovative energy projects: appropriate / advice?
Q12: Expensive technologies: continue financing?

Securing infrastructure needed for transformation:

Q13: Long-term network development: where to focus on? PCIs, … ?
Q14: Gas infrastructure investment: views?
Q15: Should EIB stop supporting hydrocarbon production (in addition to exploration) ? Gas treated similar as oil?

Supporting transformation outside EU:

Q16: Where should EIB focus support: renewables, energy efficiency, electricity grids, … ?

Background documents

Main background documents (bottom of EIB consultation webpage):

European Investment Bank. (2013). EIB and Energy: Delivering Growth, Security and Sustainability - EIB’s Screening and Assessment Criteria for Energy Projects (Energy Lending Criteria) (p. 56).
European Investment Bank. (2019a). Energy Lending Policy: Public Consultation Meeting(Agenda). Brussels, Belgium.
European Investment Bank. (2019b). Public consultation on the EIB Energy Lending Policy (p. 48). Luxembourg: European Investment Bank.
EIB’s Operations Evaluation Division (EV). (2019). Ex-post evaluation of the EIB’s Energy Lending Criteria, 2013-2017 (Thematic Evaluation Report) (p. 104). European Investment Bank.

Summary of consultation questions + discussion

The EIB requests information on specific topics, outlined in the the call for contributions: European Investment Bank. (2019b). Public consultation on the EIB Energy Lending Policy (p. 48). Luxembourg: European Investment Bank.

Introduction (pdf-p6)

[1] Existing criteria: see European Investment Bank (2013)

Energy at the core of EIB activity (pdf-p6)

[7 & 8] 13.5 billion € over last 5 years to energy infrastructure = 18 % of investments. 13 % of this has been invested outside EU.

36 % renewable energy
24 % energy efficiency
23 % electricity grids

[9] Lended to 30 EU Projects of Common Interest (PCIs) over the last 5 years = 5 billion €
[10 & 11] Different lending channels and counterparties:

Municipalities or regions : large-scale programmes
Corporate borrowers : energy grids, …
Intermediate financial institutions (commercial banks) -> home-owners : energy-efficient building rehabilitation, …

[13] Role of the EIB in the Investment Plan for Europe (IPE) within the European Fund for Strategic Investments (EFSI) :

2015: 315bn of additional investment over a 3-year period
2017: extended to 500 bn
Advice through the European Investment Advisory Hub (EIAH)
EIB : 33 % of EFSI operations went to energy

Trends in the energy transformation (pdf-p8)

→ Relates to Question 1

[15] 2018 IPCC report: limiting global warming to 1.5 degrees compared to 2 degrees
[16] Fossil fuels = 80 % of global energy consumption
[17] EU : elimination of nearly all GHG by 2050 -> radical transformation of energy systems needed.
[18] Energy consumers and citizens = centre of transformation : long-term impacts of current investments. Need to be fair across regions and society.
[19] Different pathways possible: uncertainty about costs and performance of key technologies. Markets can play a role in finding the least-cost pathway.

BOX 1: Is EIB energy lending in line with long-term climate targets? (2013 - 2017) (pdf-p9)

→ Relates to Question 2

70 % lending for energy efficiency and renewable energy = ok
Remaining 30 % : associated with wider energy objectives (gas infrastructure, …) → how to assess? : 2 standards :

1. Economic test to assess external cost of pollutants, following Economic Appraisal guide. Assumed to rise in real terms over time (spec.: carbon). Following High-Level Commission on Carbon Prices report. Also: standard unit values for air pollutants (PM, ammonia, …)

2. Emissions Performance Standard (EPS) : GHG (g CO2) emissions per unit of power (kWhe): 550g CO2/kWhe

This has a dynamic component, reflecting the forecast reduction in GHG emissions embedded within the EU ETS.
“In recognition of this dynamic element, in 2013 the Bank limited the validity of the threshold to five years” → currently under review

[20] Key trends in transformation process:

Investment in energy efficiency, focus on building stock
[21] Market of variable renewable sources (solar/wind):

Decreased costs : most competitive
Needs flexibility over short term : conventional sources, import/export, new technologies

[22] Decentralised generation and investment

Distribution System Operators (DSOs) have to actively manage power flows [previously: passive]
Interface with Transmission System Operators (TSOs), network tariffs and final energy prices paid by consumers

[23] Digitalisation : manage demand in response to price signals
[24] Electrification of heat, industry and transport sectors : sector coupling, power-to-x (hydrogent, methane, …)
[26] energy security: due to intermittence and digitalisation

[27] EU = part of transformation : Asia, Middle East and Africa energy demand continues to grow rapidly.

EU energy and climate policy (pdf-p11)

[28] In line with:

[29] Clean Energy for All Europeans package

Better integration of renewables
Prevents existence of cap on electricity prices
Criteria for design of capacity remuneration mechanisms
Development of battery storage, demand response and investment in distributed energy resources (energy communities)
[30] market design rules: driven in a greater extent by market signals

EC long-term strategic vision.

Energy & Climate nexus:

[31] EU ETS. New target: -40 % CO2 emissions in 2030 (relative to 1990) → likely to result in substantial changes in relative prices. Market stability reserve for Phase 4 (2021-2030) reduces surplus of EU allowances.
[32] Also:

32 % renewables in final energy consumption in 2030. Means: 50/60 % renewables.
32.5 % energy efficiency target for 2030: changes to industry, SMEs and buildings

[33] Internal Energy Market = instrument to drive investments (market mechanism and price signals)
[34] 2013 Energy Union Strategy & 2014 Energy Security Strategy.

[36] Specific attention to energy poverty.

[35] Development of Integrated National Energy and Climate Plans (INECP) for 2021 - 2030 → monitored by Commission
[37] How to support transition in coal- and carbon-intensive regions? : Platform on Coal and Carbon Intensive Regions.

Article 10(d) of the amended ETS Directive : support a just transition

Implications for energy investment (pdf-p13)

[38] EC modelling: 400bn needed per year over 2021-2030 (double of previous 15-year period). Large part = energy efficiency investment.

[39] = high capital cost / low operating cost / long economic lives. Cost of capital : EIB has a role to play.

[40] Revenues : relying on market signals, auctions and ETS price. Also: government intervention/subsidies, but expectation that market prices will attract sufficient funding.
[41] Need to steer private capital to sustainable investments. For this: EC High-Level Expert Group on Sustainable Finance (HLEG)

Implications for the EIB (pdf-p13)

[42] EIB = “lending arm of the EU” → needs to support EU energy & climate policy, (energy) investments have a long term [+20y] effect (!)

[43] First organisational effort: 2013:

Decline of fossil-energy investment
Priority: PCI or Climate Action projects

[BOX 3] : Energy Lending Policy (2013) context in EIB strategic plans (pdf-p14)

Corporate Operational Plan (COP) = rolling 3-year strategy, annually updated:

Orientation with public policy goals
Attention to higher-risk activities
Assessment of value of supported projects [“3 pillar assessment” & Results Management (REM) framework]

Bank lending = subject to Bank’s risk guidelines & independent credit-related appraisal process
2015 : EIB adopted Climate Action Strategy :

Minimum 25 % of lending for climate action (increase to 35 % in developing countries by 2020)

Environmental and Social Principles and Standards to ensure compliance with environmental protection and human well-being [ex: hydropower development guidelines]
All projects (including energy) need to follow the Guide to Procurement : most relevant for outside-EU projects who attempt to use local content requirements as a part of domestic industrial policy
Currently: discussions on involvement in

next multiannual financial framework: InvestEU
ETS Innovation and Modernisation Fund
Outside EU: External Investment Plan
Note: consultation not on these documents (separate processes), but highly relevant

[44] EIB investment is relatively small compared to overall renewable energy investment needs, so important to ‘set the scene’ to leverage private funding

[45] 4 main themes in consultation (pdf-p15)

Energy Efficiency: [48, 49] continue support in line with 2030 framework, specific questions on how to unlock energy efficiency investment in building sector.
Decarbonising Power and Heat: [50, 51, 52]

continue support, specific question on how to support PV and wind projects [currently frequently deployed using auctions / private power purchase agreements]
Revision of Emission Performance Standard (EPS): updating criteria. Also updated approaches towards heat decarbonisation.

Supporting new technologies and business models: [53, 54] ex: some renewables, storage, electric vehicle demand response and digitalisation → needs for investments and financing instruments that can increase EIB support to new entrants and new technologies ?
Securing infrastructure needed during energy transformation: [55, 56]

Electricity grid investment needs remain high to enable the energy transformation at distribution level and in terms of interconnection

[46] clearly technology-specific comments are welcome as part of this consultation exercise (!)

Goal of dialogue: framework to discuss with Member States + mean to reinforce dialogue with stakeholders

Annex I - Energy efficiency first (pdf-p19)

[1] Rationale: Decarbonising energy system that continues to grow needs energy efficiency investments and progress: can be less expensive then supply-side investment
[2] Focus: energy efficiency in buildings, industry and SMEs + clean/energy efficient vehicles → considered separately in Bank’s transport lending policy.
Energy Efficiency Policy

[3] 2018 EU Energy Efficiency Directive (EED) : from 20 % primary energy 2020 to 32.5 % by 2030 (upward revision by 2023 clause).
[4] 2018 amended Energy Performance of Buildings Directive (EPBD) : preparation of long-term revision strategies by Member States, including energy poverty alleviation. Short: all buildings must be nearly Zero-Energy Buildings (nZEB) by 2021.

Investment Barriers

[5] Barriers: underinvestment (exacerbated by fossil fuel investments), difficulties in measurement performance and lack of awareness of benefits of energy efficiency measures
[6] Owner-occupied buildings: limited access to finance + discounting of long payback periods.

Role of the EIB:

[7] 2017: 5bn energy efficiency investment (64 % in building sector)

Needs: 280bn per year in EU → EIB = complement and help facilitation.

[8] Building rehabilitation: 2017 : 2.6bn (55 % of energy efficiency lending). Channeled through intermediaries (commercial banks, dedicated funds) → requirements (monitoring/reporting) + technical assistance
[9]

Annex II - Decarbonising power and heat generation (20)

Renewables (20)
Emissions Performance Standard (23)

Annex III - Supporting new energy technologies and business models (26)

Deploying new technologies and business models (26)
Financing R&D and innovation (30)

Annex IV - Securing the infrastructure needed during the energy transformation (pdf-p35)

[2] “Energy networks remain the backbone of energy systems and enable the connection of new power generation capacity” & “gas infrastructure as well as fossil fuel extraction and petroleum refining will also continue to play a role during the energy transformation.”

Electricity networks (pdf-p34)

[3] long-term investment needed in interconnections, transmission and distribution networks
EU Policy

[6] EU interconnection target: 15 % by 2030 for each Member State + additional criteria (price difference bidding zones / level of renewables) → identify most urgent needs in new cross-border connections

Investment Barriers
Role of the EIB
Future focus of the Bank

[17] Intends to continue its support towards electricity grids.
[18] PCIs remain high priority
[19] is considering paying particular attention to network projects which use or enable new technologies and facilitate the decarbonisation of energy production and usage.

Gas infrastructure (36)
Hydrocarbon production and petroleum refining (39)

Annex V - Supporting energy transformation outside the EU (40)

Questions & Answers [pdf-p16]

Q1: Do paragraphs 15-27 above provide a reasonable characterisation of the long-

term energy transformation? Are there additional dimensions that the Bank should consider when reviewing its Energy Lending Policy?

→ See Trends in the energy transformation (6) summary

Answers:

Authors	Comment
Florian Dierickx, ..	It is important to check that no investment is impeding or slowing down the progress towards a zero-carbon Europe in 2050, as stated in the recently formulated EU 2050 long-term strategy (European Commission, 2018a) (European Commission, 2018b).

European Commission. (2018a). A Clean Planet for all A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy(IN-DEPTH ANALYSIS IN SUPPORT OF THE COMMISSION COMMUNICATION COM(2018) 773). Brussels, Belgium.

European Commission. (2018b). A Clean Planet for all: A European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy(COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK No. COM(2018) 773 final). Brussels: European Commission.

Q2: As set out in Box 1, the Bank believes it has a robust framework to ensure that energy projects being financed are compatible with long-term climate targets. Do you agree? Are there areas where the Bank can improve?

→ See BOX 1: Is EIB energy lending in line with long-term climate...

Answers:

Authors	Comment
Florian Dierickx, ..	To attain a solid climate mitigation framework, it is imperative that the framework is grounded in technologically based studies, preferably open source. Examples of those are: 100 % renewables studies for different regions: see ANNEX 1 for references. Also available online at https://floriandierickx.github.io/library/renewables/index.htm. Notable studies are the work of Brown (2018) and Jacobson (2011, 2012, 2013, 2014, 2017, 2018).
Florian Dierickx, ..	To achieve ambitious climate objectives, carbon pricing and financial instruments won’t solve everything, but can provide a guiding framework to enable actors in the economy to pursue the efforts of decarbonisation if it is clear and coherent on the long-term. It is important to take into consideration the shortcomings of carbon pricing as a (sole) policy tool for decarbonisation: the Social Cost of Carbon (SCC): check references Carbon Impact Cost studies: check references Financialisation of companies and industrial sectors: Financialisation (managing of companies and industrial commodities as stock portfolios) can impede progress towards decarbonisation. It is important to state physical goals. An example of this has been investigated by Jerneck (2017), who found that financialisation led to a decreased progress in renewables in the USA, compared to other countries - such as Japan - where less financialisation has been observed. EU ETS System & Carbon Leakage Legislation/List is not a sufficiently powerful policy tool that is in line with the Paris agreement decarbonisation goals. The design of the system has its shortcomings. See also nature paper of Perino (2018). Perino states that there is a need for fixed and long-term non-market determined CO2 cap and transparency in EU ETS, as "the optimal policy mix crucially depends on whether the cap in the EU ETS is fixed or a function of market outcomes". Also, “changing [...] retroactively and back and forth makes it [...] impossible to design a sensible mix of climate policies. [...] The current approach is [...] one of the least transparent ways for endogenizing total emissions in a cap-and-trade scheme". The system has caused a cascade of windfall profits for large companies, which should be addressed. Further information on this can be found in Carbon Market Watch (2016a and 2016b). Further documentation on the EU ETS can be found in ANNEX 2 or online at https://floriandierickx.github.io/library/eu-ets/index.html.
Florian Dierickx, ...	If relevant - there should be a thorough reflection on a common European and/or worldwide framework is used to enable compatibility of the different sectors (electricity generation and distribution, transport, heating, etc..) and cross-border exchange. Examples of those are Renewables: because of the intermittency of renewables, the larger the grid is designed, the more over- and underproduction in certain regions are covered by other regions. Different Global Grid studies have proved that a European or Worldwide grid extension could lead to a cost-optimal deployment of renewables. For more information on this, please refer to the work of the research group of Damien Ernst at the University of Liège. References on their work can be found in ANNEX 3. Transport infrastructure: to enable a transformation in the transport sector, the infrastructural change will need to take place on European level. Supply-chains are spread over the continent, and transport technologies will need to change at the same time to convert the industrial framework. ...
Florian Dierickx, ..	As climate change is a global issue, it is important to align an ambitious framework of the EIB with other national and multilateral investment bank policies. In this regard, interesting work has been carried out by Bjarne Steffen, Tobias T Schmidt and colleagues from ETH Switzerland: Polzin et al. (2019), Geddes et al. (2018), Egli et al. (2018) and Steffen and Schmidt (2018). A summary presentation of their research findings can be found at https://floriandierickx.github.io/twitter/cmcc/index.html. Also, to increase the impact of EIB climate and energy policies, it is important to assess the re-assess the role of the wider institutional framework [European Central Bank, …].

Carbon Market Watch. (2016a). Cement’s pollution windfall from the EU ETS[Policy Brief].

Carbon Market Watch. (2016b). Industry windfall profits from Europe’s carbon market 2008-2015: how energy intensive companies cash in on their pollution at taxpayers’ expense[Policy Brief]. Retrieved from https://carbonmarketwatch.org/wp/wp-content/uploads/2016/11/CMW-Industry-windfall-profits-from-EUs-carbon-market-2008_2015.pdf

Egli, F., Steffen, B., & Schmidt, T. S. (2018). A dynamic analysis of financing conditions for renewable energy technologies. Nature Energy, 1. https://doi.org/10.1038/s41560-018-0277-y

Geddes, A., Schmidt, T. S., & Steffen, B. (2018). The multiple roles of state investment banks in low-carbon energy finance: An analysis of Australia, the UK and Germany. Energy Policy, 115, 158–170. https://doi.org/10.1016/j.enpol.2018.01.009

Jerneck, M. (2017). Financialization impedes climate change mitigation: Evidence from the early American solar industry. Science Advances, 3(3), e1601861. https://doi.org/10.1126/sciadv.1601861

Perino, G. (2018). New EU ETS Phase 4 rules temporarily puncture waterbed. Nature Climate Change, 8(4), 262–264. https://doi.org/10.1038/s41558-018-0120-2

Polzin, F., Egli, F., Steffen, B., & Schmidt, T. S. (2019). How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective. Applied Energy, 236, 1249–1268. https://doi.org/10.1016/j.apenergy.2018.11.098

Steffen, B., & Schmidt, T. S. (2018). A quantitative analysis of 10 multilateral development banks’ investment in conventional and renewable power-generation technologies from 2006 to 2015. Nature Energy, 1. https://doi.org/10.1038/s41560-018-0280-3

Q3: Within the broad areas of renewables, energy efficiency and energy grids, are there particular areas where you feel the Bank could have higher impact?

Answers:

Authors	Comment

Q4: How can EIB reinforce its impact towards ensuring affordability, addressing social and regional disparities and support a just energy transformation?

Answers:

Authors	Comment

3.1 Theme 1: Energy Efficiency First

See Annex I - Energy efficiency first (pdf-p19)

Q5: In the case of new buildings, do you have an opinion on the proposed

approach to support only buildings that go beyond the mandatory nZEB standard after 2021? What level of ambition should the Bank focus upon, inside and outside the EU?

Answers:

Authors	Comment

Q6: The Bank has developed a number of financial and technical assistance products to help promote energy efficiency in private and public buildings. Have you had any experience with these products? If so, do you have a comment or opinion as to how they can be further developed or improved?

Answers:

Authors	Comment

Q7: Do you have lessons learned to share in order to improve the financing of energy efficiency in SMEs? Is technical assistance an important dimension? If so, do you have any views as to which type of technical assistance that is the most effective to provide?

Answers:

Authors	Comment

3.2 Theme 2: Decarbonising power and heat

Q8: Declining costs and competitive auctions are transforming a number of renewable markets (e.g. onshore wind, utility-scale PV). How can the Bank best support these relatively mature technologies? In the context of increasing market integration, is there a need for financial instruments to help attract long- term private finance?

Answers:

Authors	Comment

Q9: Does the EPS for power generation remain an appropriate safeguard? Do you agree that adjustment should be made to support flexibility and adequacy? In light of recent developments in renewables, the Paris Agreement and the Sustainable Development Goals, would an exemption to the EPS for power plants in least developed countries continue to be justified?

Answers:

Authors	Comment

3.3 Theme 3: New energy technologies and business models

Q10: Are there ways in which the Bank could provide more targeted support to distributed resources (demand response, small-scale generation and storage projects)? Are new business models or technologies emerging in this context, with specific financing needs? Is the Bank’s portfolio of financial products and instruments adequate to support this technological transition?

Answers:

Authors	Comment

Q11: The Bank has developed a number of products – both financial and advisory - targeted to supporting innovative energy projects. Do you have a view on these instruments? Can the Bank improve or better target the financing needs of the energy demonstration sector?

Answers:

Authors	Comment

Q12: Some renewable technologies or applications remain relatively expensive.

Should the Bank continue to finance such projects, even in the absence of an innovative component?

Answers:

Authors	Comment

3.4: Theme 4: Securing the infrastructure needed during the transformation

Q13: In light of the long-term nature of the network development plans, which type of projects should the Bank focus upon? In addition to PCIs, should the Bank prioritise newer investment types, for instance in digital technologies?

Answers:

Authors	Comment

Q14: What is your view on the investment needed in gas infrastructure to meet

Europe’s long-term climate and energy policy goals, while completing the internal energy market and ensuring security of supply? What approach could strike the right balance to prevent the economic risk of stranded assets?

Answers:

Authors	Comment

Q15: Should the Bank refrain from supporting hydrocarbon production, in addition to exploration? If so, should gas be treated the same as oil? Within and outside the EU?

Answers:

Authors	Comment

3.5: Supporting transformation outside the EU

Q16: Where can the Bank most usefully focus its support – either financial or advisory – to meet the Sustainable Development Goals outside the EU and better support the scaling up of renewables, energy efficiency and electricity grids in a developing country context?

Answers:

Authors	Comment

3.5: General Comments

Answers:

Authors	Comment

References

ANNEX 1: 100 % Renewables Studies

Aghahosseini, A., Bogdanov, D., Ghorbani, N., & Breyer, C. (2018). Analysis of 100% renewable energy for Iran in 2030: integrating solar PV, wind energy and storage. International Journal of Environmental Science and Technology, 15(1), 17–36. https://doi.org/10.1007/s13762-017-1373-4

Aghahosseini, Arman, Bogdanov, D., Barbosa, L. S. N. S., & Breyer, C. (2019). Analysing the feasibility of powering the Americas with renewable energy and inter-regional grid interconnections by 2030. Renewable and Sustainable Energy Reviews, 105, 187–205. https://doi.org/10.1016/j.rser.2019.01.046

Aghahosseini, Arman, Bogdanov, D., & Breyer, C. (2017). A Techno-Economic Study of an Entirely Renewable Energy-Based Power Supply for North America for 2030 Conditions. Energies, 10(8), 1171. https://doi.org/10.3390/en10081171

Barbosa, L. de S. N. S., Bogdanov, D., Vainikka, P., & Breyer, C. (2017). Hydro, wind and solar power as a base for a 100% renewable energy supply for South and Central America. PLOS ONE, 12(3), e0173820. https://doi.org/10.1371/journal.pone.0173820

Becker, S., Frew, B. A., Andresen, G. B., Zeyer, T., Schramm, S., Greiner, M., & Jacobson, M. Z. (2014). Features of a fully renewable US electricity system: Optimized mixes of wind and solar PV and transmission grid extensions. Energy, 72, 443–458. https://doi.org/10.1016/j.energy.2014.05.067

Berger, M., Radu, D., Fonteneau, R., Ernst, D., Deschuyteneer, T., Detienne, G., & Sa, F. (2018, November). Centralised Planning of National Integrated Energy System with Power-to-Gas and Gas Storages. 6. Dubrovnik, Croatia.

Berger, M., Radu, D., Fonteneau, R., Henry, R., Glavic, M., Fettweis, X., … Ernst, D. (2018). Critical Time Windows for Renewable Resource Complementarity Assessment. ArXiv:1812.02809 [Physics]. Retrieved from http://arxiv.org/abs/1812.02809

Blakers, A., Lu, B., & Stocks, M. (2017). 100% renewable electricity in Australia. Energy, 133, 471–482. https://doi.org/10.1016/j.energy.2017.05.168

Breyer, C., Bogdanov, D., Aghahosseini, A., Gulagi, A., Child, M., Oyewo, A. S., … Vainikka, P. (2018). Solar photovoltaics demand for the global energy transition in the power sector. Progress in Photovoltaics: Research and Applications, 26(8), 505–523. https://doi.org/10.1002/pip.2950

Brown, T. (2018, May 31). Burden of proof: renewables and nuclear power. Retrieved February 25, 2019, from nworbmot.org website: https://nworbmot.org/blog/burden-of-proof.html

Brown, T., Bischof-Niemz, T., Blok, K., Breyer, C., Lund, H., & Mathiesen, B. V. (2018). Response to ‘Burden of proof: A comprehensive review of the feasibility of 100% renewable-electricity systems.’ Renewable and Sustainable Energy Reviews, 92, 834–847. https://doi.org/10.1016/j.rser.2018.04.113

Brown, T., Schlachtberger, D., Kies, A., Schramm, S., & Greiner, M. (2018). Synergies of sector coupling and transmission extension in a cost-optimised, highly renewable European energy system. ArXiv:1801.05290 [Physics]. Retrieved from http://arxiv.org/abs/1801.05290

Budischak, C., Sewell, D., Thomson, H., Mach, L., Veron, D. E., & Kempton, W. (2013). Cost-minimized combinations of wind power, solar power and electrochemical storage, powering the grid up to 99.9% of the time. Journal of Power Sources, 225, 60–74. https://doi.org/10.1016/j.jpowsour.2012.09.054

Busch, J., Dawson, D., & Roelich, K. (2017). Closing the low-carbon material loop using a dynamic whole system approach. Journal of Cleaner Production, 149, 751–761. https://doi.org/10.1016/j.jclepro.2017.02.166

Caldera, U., & Breyer, C. (2018). The role that battery and water storage play in Saudi Arabia’s transition to an integrated 100% renewable energy power system. Journal of Energy Storage, 17, 299–310. https://doi.org/10.1016/j.est.2018.03.009

Chatzivasileiadis, S., Ernst, D., & Andersson, G. (2013). The Global Grid. Renewable Energy, 57, 372–383. https://doi.org/10.1016/j.renene.2013.01.032

Child, M., & Breyer, C. (2016). Vision and initial feasibility analysis of a recarbonised Finnish energy system for 2050. Renewable and Sustainable Energy Reviews, 66, 517–536. https://doi.org/10.1016/j.rser.2016.07.001

Child, M., Nordling, A., & Breyer, C. (2018). The Impacts of High V2G Participation in a 100% Renewable Åland Energy System. Energies, 11(9), 2206. https://doi.org/10.3390/en11092206

Connolly, D., Lund, H., & Mathiesen, B. V. (2016). Smart Energy Europe: The technical and economic impact of one potential 100% renewable energy scenario for the European Union. Renewable and Sustainable Energy Reviews, 60, 1634–1653. https://doi.org/10.1016/j.rser.2016.02.025

Connolly, D., Lund, H., Mathiesen, B. V., & Leahy, M. (2011). The first step towards a 100% renewable energy-system for Ireland. Applied Energy, 88(2), 502–507. https://doi.org/10.1016/j.apenergy.2010.03.006

Connolly, David, & Mathiesen, B. V. (2014). A technical and economic analysis of one potential pathway to a 100% renewable energy system. International Journal of Sustainable Energy Planning and Management, 1, 7–28. https://doi.org/10.5278/ijsepm.2014.1.2

Czisch, G. (2005). Szenarien zur zukünftigen Stromversorgung: Kostenoptimierte Variationen zur Versorgung Europas und seiner Nachbarn mit Strom aus erneuerbaren Energien(Dissertation zur Erlangung des akademischen Grades eines Doktors der Ingenieurwissenschaften (Dr.-Ing.)). Fachbereich Elektrotechnik / Informatik der Universität Kassel.

Czisch, G., & Giebel, G. (2006). Realisable Scenarios for a Future Electricity Supply based 100% on Renewable Energies(No. Risø-R-1608(EN)).

Delucchi, M. A., & Jacobson, M. Z. (2011). Providing all global energy with wind, water, and solar power, Part II: Reliability, system and transmission costs, and policies. Energy Policy, 39(3), 1170–1190. https://doi.org/10.1016/j.enpol.2010.11.045

Delucchi, M. A., & Jacobson, M. Z. (2012). Response to “A critique of Jacobson and Delucchi’s proposals for a world renewable energy supply” by Ted Trainer. Energy Policy, 44(Supplement C), 482–484. https://doi.org/10.1016/j.enpol.2011.10.058

Elliston, B., Diesendorf, M., & MacGill, I. (2012). Simulations of scenarios with 100% renewable electricity in the Australian National Electricity Market. Energy Policy, 45, 606–613. https://doi.org/10.1016/j.enpol.2012.03.011

Elliston, B., MacGill, I., & Diesendorf, M. (2013). Least cost 100% renewable electricity scenarios in the Australian National Electricity Market. Energy Policy, 59, 270–282. https://doi.org/10.1016/j.enpol.2013.03.038

Elliston, B., MacGill, I., & Diesendorf, M. (2014). Comparing least cost scenarios for 100% renewable electricity with low emission fossil fuel scenarios in the Australian National Electricity Market. Renewable Energy, 66, 196–204. https://doi.org/10.1016/j.renene.2013.12.010

Energy Transition Model - Your free, independent, comprehensive, fact-based scenario builder. (n.d.). Retrieved February 25, 2019, from https://pro.energytransitionmodel.com/scenario/demand/households/population-housing-stock

Fonteneau, R., & Ernst, D. (2017). On the Dynamics of the Deployment of Renewable Energy Production Capacities. In J. N. Furze, K. Swing, A. K. Gupta, R. H. McClatchey, & D. M. Reynolds (Eds.), Mathematical Advances Towards Sustainable Environmental Systems(pp. 43–60). https://doi.org/10.1007/978-3-319-43901-3_3

García-Olivares, A., Solé, J., & Osychenko, O. (2018). Transportation in a 100% renewable energy system. Energy Conversion and Management, 158, 266–285. https://doi.org/10.1016/j.enconman.2017.12.053

Greenpeace Germany. (2015). Energy [R]Evolution scenario 2015: 100% Renewable Energy for All[Key Messages]. Retrieved from Greenpeace Germany website: https://www.greenpeace.org/archive-international/Global/international/publications/climate/2015/Energy-Revolution-2015-Key-Messages.pdf

Gulagi, A., Bogdanov, D., & Breyer, C. (2017). A Cost Optimized Fully Sustainable Power System for Southeast Asia and the Pacific Rim. Energies, 10(5), 583. https://doi.org/10.3390/en10050583

Gulagi, A., Bogdanov, D., Fasihi, M., & Breyer, C. (2017). Can Australia Power the Energy-Hungry Asia with Renewable Energy? Sustainability, 9(2), 233. https://doi.org/10.3390/su9020233

Gulagi, A., Choudhary, P., Bogdanov, D., & Breyer, C. (2017). Electricity system based on 100% renewable energy for India and SAARC. PLOS ONE, 12(7), e0180611. https://doi.org/10.1371/journal.pone.0180611

Hart, E. K., & Jacobson, M. Z. (2011). A Monte Carlo approach to generator portfolio planning and carbon emissions assessments of systems with large penetrations of variable renewables. Renewable Energy, 36(8), 2278–2286. https://doi.org/10.1016/j.renene.2011.01.015

Hart, E. K., & Jacobson, M. Z. (2012). The carbon abatement potential of high penetration intermittent renewables. Energy & Environmental Science, 5(5), 6592–6601. https://doi.org/10.1039/C2EE03490E

Heard, B. P., Brook, B. W., Wigley, T. M. L., & Bradshaw, C. J. A. (2017). Burden of proof: A comprehensive review of the feasibility of 100% renewable-electricity systems. Renewable and Sustainable Energy Reviews, 76, 1122–1133. https://doi.org/10.1016/j.rser.2017.03.114

Jacobson, M. Z., & Delucchi, M. A. (2011). Providing all global energy with wind, water, and solar power, Part I: Technologies, energy resources, quantities and areas of infrastructure, and materials. Energy Policy, 39(3), 1154–1169. https://doi.org/10.1016/j.enpol.2010.11.040

Jacobson, M. Z., & Delucchi, M. A. (2013). Response to Trainer’s second commentary on a plan to power the world with wind, water, and solar power. Energy Policy, 57(Supplement C), 641–643. https://doi.org/10.1016/j.enpol.2012.11.014

Jacobson, M. Z., Delucchi, M. A., Bauer, Z. A. F., Goodman, S. C., Chapman, W. E., Cameron, M. A., … Yachanin, A. S. (2017). 100% Clean and Renewable Wind, Water, and Sunlight All-Sector Energy Roadmaps for 139 Countries of the World. Joule. https://doi.org/10.1016/j.joule.2017.07.005

Jacobson, M. Z., Delucchi, M. A., Cameron, M. A., & Frew, B. A. (2017). The United States can keep the grid stable at low cost with 100% clean, renewable energy in all sectors despite inaccurate claims. Proceedings of the National Academy of Sciences, 114(26), E5021–E5023. https://doi.org/10.1073/pnas.1708069114

Jacobson, M. Z., Delucchi, M. A., Cameron, M. A., & Mathiesen, B. V. (2018). Matching demand with supply at low cost in 139 countries among 20 world regions with 100% intermittent wind, water, and sunlight (WWS) for all purposes. Renewable Energy, 123, 236–248. https://doi.org/10.1016/j.renene.2018.02.009

Liu, H., Andresen, G. B., & Greiner, M. (2018). Cost-optimal design of a simplified highly renewable Chinese electricity network. Energy, 147, 534–546. https://doi.org/10.1016/j.energy.2018.01.070

Lu, B., Blakers, A., & Stocks, M. (2017). 90–100% renewable electricity for the South West Interconnected System of Western Australia. Energy, 122, 663–674. https://doi.org/10.1016/j.energy.2017.01.077

Lund, H. (2006). Large-scale integration of optimal combinations of PV, wind and wave power into the electricity supply. Renewable Energy, 31(4), 503–515. https://doi.org/10.1016/j.renene.2005.04.008

Lund, H., & Mathiesen, B. V. (2009). Energy system analysis of 100% renewable energy systems—The case of Denmark in years 2030 and 2050. Energy, 34(5), 524–531. https://doi.org/10.1016/j.energy.2008.04.003

Mason, I. G., Page, S. C., & Williamson, A. G. (2010). A 100% renewable electricity generation system for New Zealand utilising hydro, wind, geothermal and biomass resources. Energy Policy, 38(8), 3973–3984. https://doi.org/10.1016/j.enpol.2010.03.022

Mathiesen, B. V., Lund, H., Connolly, D., Wenzel, H., Østergaard, P. A., Möller, B., … Hvelplund, F. K. (2015). Smart Energy Systems for coherent 100% renewable energy and transport solutions. Applied Energy, 145, 139–154. https://doi.org/10.1016/j.apenergy.2015.01.075

Mathiesen, Brian Vad, Lund, H., & Karlsson, K. (2011). 100% Renewable energy systems, climate mitigation and economic growth. Applied Energy, 88(2), 488–501. https://doi.org/10.1016/j.apenergy.2010.03.001

Mathiesen, B.V., Lund, H., Connolly, D., Wenzel, H., Ostergaard, P. A., Möller, B., … Hvelplund, F. K. (2015). Smart Energy Systems for coherent 100% renewable energy and transport solutions. Applied Energy, 145, 139–154. https://doi.org/10.1016/j.apenergy.2015.01.075

Miguel, E., Miguel, E., Joana, P.-P., C, M. B., Jeremy, B., Hooman, F., … Volker, R. (2018). 100% renewable energy system in Japan: Smoothening and ancillary services | Article Information | J-GLOBAL. Applied Energy, 224, 698–707. Retrieved from https://jglobal.jst.go.jp/en/detail?JGLOBAL_ID=201802257446790992

Minnesma, M. (n.d.). Nederland: 100 % duurzame energie in 2030. Retrieved from Urgenda website: https://www.urgenda.nl/wp-content/uploads/Urgenda-Rapport-Duurzame-Energie-in-2030-v2-2017.pdf

Moriarty, P., & Honnery, D. (2012). What is the global potential for renewable energy? Renewable and Sustainable Energy Reviews, 16(1), 244–252. https://doi.org/10.1016/j.rser.2011.07.151

Mountford, H., Corfee-Morlot, J., McGregor, M., Banaji, F., Bhattacharya, A., Brand, J., … Westphal, M. (2018). The New Climate Economy:World Resources Institute.

Napp, T., Hills, T., Soltani, S. M., Bosch, J., & Mazur, C. (n.d.). A survey of key technological innovations for the low-carbon economy. Grantham Institute for Climate Change and the Environment.

Radu, D.-C., Berger, M., Fonteneau, R., Hardy, S., Fettweis, X., Le Du, M., … Ernst, D. (2018). Complementarity Assessment of South Greenland Katabatic Flows and West Europe Wind Regimes. Retrieved from https://orbi.uliege.be/handle/2268/230016

Ram, M., Bogdanov, D., Aghahosseini, A., Oyewo, A. S., Gulagi, A., Child, M., … Fell, H.-J. (2018a). Global Energy System Based on 100% Renewable Energy - Power Sector[Key Findings]. Retrieved from Lappeenranta University of Technology and Energy Watch Group website: http://energywatchgroup.org/wp-content/uploads/2017/11/Full-Study-100-Renewable-Energy-Worldwide-Power-Sector.pdf

Ram, M., Bogdanov, D., Aghahosseini, A., Oyewo, A. S., Gulagi, A., Child, M., … Fell, H.-J. (2018b). Global Energy System Based on 100% Renewable Energy - Power Sector[Executive Summary]. Retrieved from Lappeenranta University of Technology and Energy Watch Group website: http://energywatchgroup.org/wp-content/uploads/2017/11/Full-Study-100-Renewable-Energy-Worldwide-Power-Sector.pdf

Ram, M., Bogdanov, D., Aghahosseini, A., Oyewo, A. S., Gulagi, A., Child, M., … Fell, H.-J. (2018c). Global Energy System Based on 100% Renewable Energy - Power Sector. Retrieved from Lappeenranta University of Technology and Energy Watch Group website: http://energywatchgroup.org/wp-content/uploads/2017/11/Full-Study-100-Renewable-Energy-Worldwide-Power-Sector.pdf

Rasmussen, M. G., Andresen, G. B., & Greiner, M. (2012). Storage and balancing synergies in a fully or highly renewable pan-European power system. Energy Policy, 51, 642–651. https://doi.org/10.1016/j.enpol.2012.09.009

Sadiqa, A., Gulagi, A., & Breyer, C. (2018). Energy transition roadmap towards 100% renewable energy and role of storage technologies for Pakistan by 2050. Energy, 147, 518–533. https://doi.org/10.1016/j.energy.2018.01.027

Schlachtberger, D. P., Brown, T., Schäfer, M., Schramm, S., & Greiner, M. (2018). Cost optimal scenarios of a future highly renewable European electricity system: Exploring the influence of weather data, cost parameters and policy constraints. ArXiv:1803.09711 [Physics]. Retrieved from http://arxiv.org/abs/1803.09711

Steinke, F., Wolfrum, P., & Hoffmann, C. (2013). Grid vs. storage in a 100% renewable Europe. Renewable Energy, 50, 826–832. https://doi.org/10.1016/j.renene.2012.07.044

Teske, S., Sawyer, S., Schäfer, O., Pregger, T., Simon, S., & Naegler, T. (2015a). energy [r]evolution: a sustainable world energy outlook 2015(Executive Summary No. 5). Greenpeace.

Teske, S., Sawyer, S., Schäfer, O., Pregger, T., Simon, S., & Naegler, T. (2015b). energy [r]evolution: a sustainable world energy outlook 2015(No. 5). Greenpeace.

Trainer, T. (2012). A critique of Jacobson and Delucchi’s proposals for a world renewable energy supply. Energy Policy, 44(Supplement C), 476–481. https://doi.org/10.1016/j.enpol.2011.09.037

Trainer, T. (2013). 100% Renewable supply? Comments on the reply by Jacobson and Delucchi to the critique by Trainer. Energy Policy, 57(Supplement C), 634–640. https://doi.org/10.1016/j.enpol.2012.10.007

Zapata, S., Castaneda, M., Jimenez, M., Julian Aristizabal, A., Franco, C. J., & Dyner, I. (2018). Long-term effects of 100% renewable generation on the Colombian power market. Sustainable Energy Technologies and Assessments, 30, 183–191. https://doi.org/10.1016/j.seta.2018.10.008

Zappa, W., Junginger, M., & van den Broek, M. (2019). Is a 100% renewable European power system feasible by 2050? Applied Energy, 233–234, 1027–1050. https://doi.org/10.1016/j.apenergy.2018.08.109

ANNEX 2: EU ETS & Carbon Leakage List

Acworth, W., Oca, M. M. de, Piantieri, C., Gagnon-Lebrun, F., Gass, P., Touchette, Y., & Matthes, F. C. (2018a). Emissions Trading and Electricity Sector Regulation: A conceptual framework for understanding interactions between carbon prices and electricity prices.

Acworth, W., Oca, M. M. de, Piantieri, C., Gagnon-Lebrun, F., Gass, P., Touchette, Y., & Matthes, F. C. (2018b). Emissions Trading and Electricity Sector Regulation: A conceptual framework for understanding interactions between carbon prices and electricity prices - Summary for Policymakers[Summary for Policymakers].

Adoption of solar and wind energy: The roles of carbon pricing and aggregate policy support. (2018). Energy Policy, 118, 404–417. https://doi.org/10.1016/j.enpol.2018.03.050

Anastopoulou, A., Koutsopoulos, I., & Stamoulis, G. D. (2017). Optimal Targeting and Contract Offering for Load Curtailment in Nega-Watt Markets. IEEE Transactions on Control of Network Systems, 4(4), 805–815. https://doi.org/10.1109/TCNS.2016.2559738

Bataille, C., Guivarch, C., Hallegatte, S., Rogelj, J., & Waisman, H. (2018). Carbon prices across countries. Nature Climate Change, 8(8), 648–650. https://doi.org/10.1038/s41558-018-0239-1

Borghesi, S., & Flori, A. (2018). EU ETS facets in the net: Structure and evolution of the EU ETS network. Energy Economics, 75, 602–635. https://doi.org/10.1016/j.eneco.2018.08.026

Campiglio, E. (2016). Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy. Ecological Economics, 121, 220–230. https://doi.org/10.1016/j.ecolecon.2015.03.020

Carbon Market Watch. (2016a). Cement’s pollution windfall from the EU ETS[Policy Brief].

Carbon pricing and general equilibrium under Leontief production technology. (2018). Journal of Cleaner Production, 190, 368–377. https://doi.org/10.1016/j.jclepro.2018.04.100

Carbon Trust. (2010). Tackling carbon leakage: Sector specific solutions for a world of unequal carbon prices. Retrieved from https://www.carbontrust.com/media/84908/ctc767-tackling-carbon-leakage.pdf

Cludius, J. (2018). Winners and Losers of EU Emissions Trading: Insights from the EUTL Transfer Dataset. Economics of Energy & Environmental Policy, 7(2). https://doi.org/10.5547/2160-5890.7.2.jclu

Cludius, J., & Betz, R. (2016). EU Emissions Trading: The Role of Banks and Other Financial Actors Insights from the EU Transaction Log and Interviews(SML Working Paper No. 12). Winterthur, Switzerland: ZHAW School of Management and Law.

Daskalakis, G. (2018). Temporal restrictions on emissions trading and the implications for the carbon futures market: Lessons from the EU emissions trading scheme. Energy Policy, 115, 88–91. https://doi.org/10.1016/j.enpol.2018.01.008

de Bruyn, S., Schep, E., & Cherif, S. (2016). Calculation of additional profits of sectors and firms from the EU ETS. Retrieved from CE Delft website: http://www.cedelft.eu/publicatie/calculation_of_additional_profits_of_sectors_and_firms_from_the_eu_ets/1763

Duan, M., Qi, S., & Wu, L. (2018). Designing China’s national carbon emissions trading system in a transitional period. Climate Policy, 18(sup1), 1–6. https://doi.org/10.1080/14693062.2018.1477288

Duscha, V. (2018). The EU ETS and Dynamic Allocation in Phase IV—An Ex-Ante Assessment. Energies, 11(2), 409. https://doi.org/10.3390/en11020409

Edenhofer, O., Normark, B., & Tardieu, B. (2014). Reform Options for the European Emissions Trading System (EU ETS)[Euro-CASE Policy Position Paper]. Retrieved from Euro-CASE Energy Platform website: http://euro-case.org/images/stories/pdf/position-paper/Euro-CASE-policy-paper-ETS-reform.pdf

European Environment Agency, European Topic Centre for Air pollution and Climate change Mitigation, Gores, S., Cludius, J., Graichen, V., Healy, S., … Zell-Ziegler, C. (2018a). EU Emissions Trading System data viewer: Background note. Retrieved from EEA website: https://www.eea.europa.eu/ds_resolveuid/32f7162f3daa406d9a675c9e497ee0bc

European Environment Agency, European Topic Centre for Air pollution and Climate change Mitigation, Gores, S., Cludius, J., Graichen, V., Healy, S., … Zell-Ziegler, C. (2018b). EU Emissions Trading System data viewer: User manual. Retrieved from EEA website: https://www.eea.europa.eu/ds_resolveuid/2462d23b1bbb40faba39dafce430c1c8

Feng, S., Howes, S., Liu, Y., Zhang, K., & Yang, J. (n.d.). Towards a national ETS in China: Cap-setting and model mechanisms. Energy Economics. https://doi.org/10.1016/j.eneco.2018.03.016

Fuss, S., Flachsland, C., Koch, N., Kornek, U., Knopf, B., & Edenhofer, O. (n.d.). A Framework for Assessing the Performance of Cap-and-Trade Systems: Insights from the European Union Emissions Trading System. Review of Environmental Economics and Policy. https://doi.org/10.1093/reep/rey010

Generation Foundation, & Ecofys. (2016, November). Impacts of a Global Carbon Price on Consumption and Value Creation: Implications for carbon pricing design.

Gores, S., Graichen, V., European Environment Agency, & European Topic Centre for Air pollution and Climate change Mitigation. (2016). Attribution of new activity codes for installations with old codes in the EEA’s EU ETS data viewer(p. 25).

Graichen, V., Cludius, J., & Gores, S. (2017). Estimate of 2005-2012 emissions for stationary installations to reflect the current scope (2013-2020) of the EU ETS(ETC/ACM Technical Paper No. 2017/1; p. 52). Retrieved from European Topic Centre on Air Pollution and Climate Change Mitigation website: http://acm.eionet.europa.eu/reports/ETCACM_TP_2017_11_estimates_reflect_current_ETS_scope

Graichen, V., Cludius, J., Gores, S., & European Topic Centre on Air Pollution and Climate Change Mitigation. (2017). Estimate of historical emissions for stationary installations to reflect the current scope of the EU ETS (2013-2020)(ETC/ACM Technical Paper No. 2017/2; p. 52). Retrieved from European Topic Centre on Air Pollution and Climate Change Mitigation website: http://acm.eionet.europa.eu/reports/ETCACM_TP_2017_11_estimates_reflect_current_ETS_scope

Healy, S., Graichen, V., Cludius, J., Gores, S., & European Environment Agency. (2017). Trends and projections in the EU ETS in 2017: the EU Emissions Trading System in numbers.Retrieved from http://data.europa.eu/doi/10.2800/425306

Heitzig, J., & Kornek, U. (2018). Publisher Correction: Bottom-up linking of carbon markets under far-sighted cap coordination and reversibility. Nature Climate Change, 1. https://doi.org/10.1038/s41558-018-0125-x

Jerneck, M. (2017). Financialization impedes climate change mitigation: Evidence from the early American solar industry. Science Advances, 3(3), e1601861. https://doi.org/10.1126/sciadv.1601861

Kylili, A., Fokaides, P. A., Ioannides, A., & Kalogirou, S. (2018). Environmental assessment of solar thermal systems for the industrial sector. Journal of Cleaner Production, 176, 99–109. https://doi.org/10.1016/j.jclepro.2017.12.150

Lacombe, R. H. (2008). Economic impact of the European Union Emission Trading Scheme : evidence from the refining sector(Thesis, Massachusetts Institute of Technology). Retrieved from http://dspace.mit.edu/handle/1721.1/42936

Lapan, H. E., & Sikdar, S. (2017). Is Trade in Permits Good for the Environment? Environmental and Resource Economics, 1–10. https://doi.org/10.1007/s10640-017-0202-z

Lavric, L. (2016). Consumption and production indexes: options for contextualising EU GHG emissions data(MPRA Paper No. 71895; p. 12). Retrieved from Encompass Economics Ltd. website: https://mpra.ub.uni-muenchen.de/71895/

Löfgren, Å., Burtraw, D., Wråke, M., & Malinovskaya, A. (n.d.). Distribution of Emissions Allowances and the Use of Auction Revenues in the European Union Emissions Trading System. Review of Environmental Economics and Policy. https://doi.org/10.1093/reep/rey012

Marcu, A., Alberola, E., Caneill, J.-Y., Mazzoni, M., Schleicher, S., Stoefs, W., … Vangenechten, D. (2018). 2018 State of the EU ETS Report(p. 37). ERCST, Wegener Center, Nomisma Energia, I4CE and Ecoact.

Marschinski, R., Flachsland, C., & Jakob, M. (2012). Sectoral linking of carbon markets: A trade-theory analysis. Resource and Energy Economics, 34(4), 585–606. https://doi.org/10.1016/j.reseneeco.2012.05.005

Martin, R., Muûls, M., & Wagner, U. J. (2016). The Impact of the European Union Emissions Trading Scheme on Regulated Firms: What Is the Evidence after Ten Years? Review of Environmental Economics and Policy, 10(1), 129–148. https://doi.org/10.1093/reep/rev016

Muûls, M., Colmer, J., Martin, R., & Wagner, U. J. (2016). Evaluating the EU Emissions Trading System: Take it or leave it? An assessment of the data after ten years(Grantham Institute Briefing Paper No. 21; p. 12).

Narassimhan, E., Gallagher, K. S., Koester, S., & Alejo, J. R. (2018). Carbon pricing in practice: a review of existing emissions trading systems. Climate Policy, 0(0), 1–25. https://doi.org/10.1080/14693062.2018.1467827

Neuhoff, K., Acworth, W., Dechezleprêtre, A., Dröge, S., Sartor, O., Sato, M., … Schopp, A. (2014). Staying with the leaders: Europe’s path to a successful low-carbon economy[Policy Brief]. Retrieved from Climate Strategies website: https://www.swp-berlin.org/fileadmin/contents/products/fachpublikationen/Droege_staying_with_the_leaders_AcrobatNochmal2.pdf

Perino, G. (2018). New EU ETS Phase 4 rules temporarily puncture waterbed. Nature Climate Change, 8(4), 262–264. https://doi.org/10.1038/s41558-018-0120-2

Rocchi, P., Serrano, M., & Roca, J. (2014). The reform of the European energy tax directive: Exploring potential economic impacts in the EU27. Energy Policy, 75, 341–353. https://doi.org/10.1016/j.enpol.2014.09.022

Rocchi, P., Serrano, M., Roca, J., & Arto, I. (2018). Border Carbon Adjustments Based on Avoided Emissions: Addressing the Challenge of Its Design. Ecological Economics, 145, 126–136. https://doi.org/10.1016/j.ecolecon.2017.08.003

Sandbag. (2018). Coal To Clean: How the UK phased out coal without a dash for gas. WWF.

Sartor, O. (2013). Carbon Leakage in the Primary Aluminium Sector: What Evidence after 6.5 Years of the EU ETS?(SSRN Scholarly Paper No. ID 2205516). Retrieved from Social Science Research Network website: https://papers.ssrn.com/abstract=2205516

Schwirplies, C. (2018). Fair pay for green energy. Nature Energy, 3(10), 822–823. https://doi.org/10.1038/s41560-018-0254-5

Seebach, D., Timpe, C., Klimscheffskij, M., Lescot, D., Raadal, H. L., Raimundo, C., & Tschernutter, A. (2015). Reliable Disclosure in Europe: Status, Improvements and Perspectives[Final Report]. Retrieved from Öko-Institut e.V website: http://www.reliable-disclosure.org/static/media/docs/RE-DISSII_Final-Report_online.pdf

Tol, R. S. J. (2017). Leaving an Emissions Trading Scheme: Implications for the United Kingdom and the European Union. Review of Environmental Economics and Policy. https://doi.org/10.1093/reep/rex025

Wiebe, K. S. (2016). The impact of renewable energy diffusion on European consumption-based emissions. Economic Systems Research, 28(2), 133–150. https://doi.org/10.1080/09535314.2015.1113936

Wyns, T., & Axelson, M. (2016). Decarbonising Europe’s energy intensive industries: The Final Frontier. Retrieved from Institute for European Studies (Vrije Universiteit Brussel) website: https://www.ies.be/files/The_Final_Frontier_Wyns_Axelson.pdf

Zeng, Y., Weishaar, S. E., & Vedder, H. H. B. (2018). Electricity regulation in the Chinese national emissions trading scheme (ETS): lessons for carbon leakage and linkage with the EU ETS. Climate Policy, 0(0), 1–14. https://doi.org/10.1080/14693062.2018.1426553

ANNEX 3: The Global Grid - Extension and dynamics of renewables expansion

Chatzivasileiadis, S., Ernst, D., & Andersson, G. (2012). The Global Grid. ArXiv:1207.4096 [Physics]. Retrieved from http://arxiv.org/abs/1207.4096

Chatzivasileiadis, S., Ernst, D., & Andersson, G. (2013). The Global Grid. Renewable Energy, 57, 372–383. https://doi.org/10.1016/j.renene.2013.01.032

Gemine, Q., Ernst, D., & Cornélusse, B. (2014). Active network management for electrical distribution systems: problem formulation, benchmark, and approximate solution. ArXiv:1405.2806 [Cs]. Retrieved from http://arxiv.org/abs/1405.2806

Radu, D., Berger, M., Fonteneau, R., Hardy, S., Fettweis, X., Du, M. L., … Ernst, D. (2018). Complementarity Assessment of South Greenland Katabatic Flows and West Europe Wind Regimes. ArXiv:1812.02827 [Physics]. Retrieved from http://arxiv.org/abs/1812.02827

Signatures (full, part, different parts)

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Name	Function/Role	Interest / Discipline	University / Organization	Faculty / Group	Country	Signature
Florian DIERICKX	PhD	Energy modelling, Input-output & life cycle analysis	University Blaise Pascal	CERDI-CNRS	France

EIB Energy Lending Policy Consultation

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Background documents

Summary of consultation questions + discussion

Introduction (pdf-p6)

Energy at the core of EIB activity (pdf-p6)

Trends in the energy transformation (pdf-p8)

EU energy and climate policy (pdf-p11)

Implications for energy investment (pdf-p13)

Implications for the EIB (pdf-p13)

[BOX 3] : Energy Lending Policy (2013) context in EIB strategic plans (pdf-p14)

[45] 4 main themes in consultation (pdf-p15)

Annex I - Energy efficiency first (pdf-p19)

Annex II - Decarbonising power and heat generation (20)

Annex III - Supporting new energy technologies and business models (26)

Annex IV - Securing the infrastructure needed during the energy transformation (pdf-p35)

Annex V - Supporting energy transformation outside the EU (40)

Questions & Answers [pdf-p16]

Q1: Do paragraphs 15-27 above provide a reasonable characterisation of the long-

term energy transformation? Are there additional dimensions that the Bank should consider when reviewing its Energy Lending Policy?

Q2: As set out in Box 1, the Bank believes it has a robust framework to ensure that energy projects being financed are compatible with long-term climate targets. Do you agree? Are there areas where the Bank can improve?

Q3: Within the broad areas of renewables, energy efficiency and energy grids, are there particular areas where you feel the Bank could have higher impact?

Q4: How can EIB reinforce its impact towards ensuring affordability, addressing social and regional disparities and support a just energy transformation?

3.1 Theme 1: Energy Efficiency First

Q5: In the case of new buildings, do you have an opinion on the proposed

approach to support only buildings that go beyond the mandatory nZEB standard after 2021? What level of ambition should the Bank focus upon, inside and outside the EU?

Q6: The Bank has developed a number of financial and technical assistance products to help promote energy efficiency in private and public buildings. Have you had any experience with these products? If so, do you have a comment or opinion as to how they can be further developed or improved?

Q7: Do you have lessons learned to share in order to improve the financing of energy efficiency in SMEs? Is technical assistance an important dimension? If so, do you have any views as to which type of technical assistance that is the most effective to provide?

3.2 Theme 2: Decarbonising power and heat

3.3 Theme 3: New energy technologies and business models

Q11: The Bank has developed a number of products – both financial and advisory - targeted to supporting innovative energy projects. Do you have a view on these instruments? Can the Bank improve or better target the financing needs of the energy demonstration sector?

Q12: Some renewable technologies or applications remain relatively expensive.

Should the Bank continue to finance such projects, even in the absence of an innovative component?

3.4: Theme 4: Securing the infrastructure needed during the transformation

Q13: In light of the long-term nature of the network development plans, which type of projects should the Bank focus upon? In addition to PCIs, should the Bank prioritise newer investment types, for instance in digital technologies?

Q14: What is your view on the investment needed in gas infrastructure to meet

Europe’s long-term climate and energy policy goals, while completing the internal energy market and ensuring security of supply? What approach could strike the right balance to prevent the economic risk of stranded assets?

Q15: Should the Bank refrain from supporting hydrocarbon production, in addition to exploration? If so, should gas be treated the same as oil? Within and outside the EU?

3.5: Supporting transformation outside the EU

Q16: Where can the Bank most usefully focus its support – either financial or advisory – to meet the Sustainable Development Goals outside the EU and better support the scaling up of renewables, energy efficiency and electricity grids in a developing country context?

3.5: *General Comments*

References

ANNEX 1: 100 % Renewables Studies

ANNEX 2: EU ETS & Carbon Leakage List

ANNEX 3: The Global Grid - Extension and dynamics of renewables expansion

Signatures (full, part, different parts)

3.5: General Comments