The European Commission today opened a consultation to inform the development of a comprehensive research, innovation and competitiveness strategy for Europe’s Energy Union. Following the global agreement on emissions reductions achieved in Paris in December 2015, the consultation aims to inform the European strategy to reduce emissions while maintaining the competitiveness of economic sectors and providing secure energy solutions to EU citizens and businesses.
Frontier Economics and the Grantham Institute at Imperial College London recently assessed the costs and benefits associated with increasing investment in low carbon innovation. The report looked particularly at a specific proposal made by the Global Apollo Program for countries to devote at least 0.02% of GDP to public expenditure on renewables RD&D over a 10-year period from 2016. The research found that there is a strong economic case for increasing spending on low carbon innovation: a global increase in public expenditure on low carbon innovation to 0.02% of GDP could reduce the cost of meeting a 2oC climate target by $0.7-4.0 trillion out to 2040.
Frontier regularly advises clients on issues relating to renewables and innovation policy.
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