Decarbonisation of the economy requires an extension of climate policy to the gas market

Decarbonisation of the economy requires an extension of climate policy to the gas market

Dr Christoph Riechmann, Director in Frontier’s Energy practice, presented at the European Utility Week in Paris on sector coupling and its implications for the future gas market. 

In his presentation Christoph pointed out that green and low carbon gases, partly produced from renewable electricity can support decarbonisation efficiently as they can address its three key challenges: 

  • use of sustainable renewable supply;
  • bulk energy storage and;
  • transport. 

This is why scenario studies that explore the deep decarbonisation of the economy consistently find a long-term role for gases and increasing interaction between increasingly renewable electricity and gas, including new types of synthetic gas, such as hydrogen and synthetically produced methane.

However, Christoph pointed out that an efficient decarbonisation of the economy requires climate policy instruments to be more stringently extended to the gas sector.

A recent Frontier study on behalf of the European Commission identifies regulatory gaps and barriers for green gases and points out possible solutions.

Frontier currently explores market-based climate policy instruments for the gas sector. Frontier regularly advises clients on sector coupling and gas market design.

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