2024-05-27-IMF-The_Energy_Security_Gains_from_Strengthening_Europe_s_Climate_Action_42页_5mb

European Energy Security Enhancements Via Climate Action

Climate policies in Europe can enhance energy security along both supply security and economic resilience dimensions. Key findings include:

• Carbon Pricing: Reduces emissions cost-effectively but can weaken energy security in fossil-intensive economies due to higher energy costs, though elastic demand offsets this in the medium term in Western Europe.
• Energy Efficiency Standards: Offers larger, more uniform co-benefits by directly reducing energy demand and prices, benefiting all European regions, including Central/Eastern Europe.
• Renewables Deployment: Boosts energy self-sufficiency by displacing imports, reducing geographic concentration, especially in wind/solar-rich regions.
• Heat Pumps: Lowers fossil fuel imports but requires simultaneous power sector decarbonization to avoid electricity price hikes.
• Combination Policy: A 55% GHG reduction package (by 2030) improves supply security (8%) and economic resilience, spreading benefits widely.

Europe must avoid overinvestment in fossil fuels and deepen integration (e.g., electricity markets, EU-wide funds) to ensure equitable energy security gains.