In partnership with Kantor Management Consultants SA, E3-Modelling will work on the design of an effective carbon pricing mechanism in the Energy Community countries.

This will be done by assessing the impacts of such mechanism on the energy system and prices and the socio-economics of each country.

It is worth noting that, in accordance with the energy acquis, the design of this mechanism should allow for transitional carbon pricing by each country (or as part of a regional design) and prepare them for joining the EU ETS in the future.

A first step in the design of the mechanism will be to define and assess alternative policy options, covering both carbon taxation and cap and trade systems. To this end, E3M will engage in extensive consultation with key stakeholders from the region, including existing Energy Community bodies, national institutions and associations.

Further, E3-Modelling will perform quantitative assessment of the different policy options, by modelling the impact of a carbon price on the electricity sector and other relevant sectors (competitiveness, employment, investment etc.).

The qualitative assessment of the different options will reveal the most effective carbon pricing design, with an estimated timeline and resources needed for implementation.

All the above were discussed during the project kick-off meeting, which took place at the headquarters of the Energy Community Secretariat in Vienna, on January 20.

For more information about the Energy Community, see here: https://www.energy-community.org/