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While it is widely acknowledged that carbon pricing plays an important role in driving the transition towards a low-carbon energy system, its interaction with complementary instruments is discussed controversially. The analysis of combining carbon pricing with complementary policies has been mostly focused on the electricity sector, while the role of carbon pricing in the buildings sector has received only minor interest. In view of the newly introduced carbon pricing scheme for the buildings and transport sector in Germany, we analyze the interactions between the carbon pricing scheme with the existing policy instruments and assess the consistency of the policy mix for decarbonizing the buildings sector. Our analysis finds that the introduction of carbon pricing has a reinforcing effect on the instrument mix and adds to the consistency of the policy mix. The results highlight the importance of complementary policies in order to achieve deep decarbonization in the buildings sector. We conclude that carbon pricing, preferably implemented as a tax with a predictable and increasing price level, needs to be supplemented with a powerful mix of complementary measures. [ABSTRACT FROM AUTHOR]

In view of the current geopolitical situation, the EU and its Member States are accelerating efforts to reduce their dependency on fossil fuel imports, while simultaneously tackling the climate crisis. With heating in buildings accounting for a large share of the energy consumption in the EU, policies to phase-out fossil fuels for heating and to switch to renewables are key elements. In the context of the proposed actions to phase-out fossil fuels at EU level, this article provides a systematic analysis of current and planned phase-out regulations for fossil fuel boilers in the EU Member States. The paper quantifies the share of energy consumption for heating that is addressed by such regulations and finds that the current regulations only address about 10% of the total fossil energy consumption for heating in the EU. The share increases to almost 30% when considering the planned regulations, reflecting the fact that large energy consumers such as Germany and the Netherlands have announced such regulations. The analysis shows that several Member States with high energy consumption for heating have neither implemented nor announced plans to introduce phase-out regulations for fossil fuel heating. The study concludes that immediate policy action is needed both at EU and at Member State levels. At EU level, the proposed introduction of an end-date for stand-alone fossil fuel boilers needs to be substantiated and implemented into the legislative framework. At the national level, phase-out regulations for fossil fuel boilers need to be expanded both in quantity and scope. [Display omitted] • Systematic analysis of phase-out regulations for fossil fuel boilers in the EU. • Only 10% of the EU fossil energy used for heating is covered by phase-out regulations. • Including planned regulations, the share of heating energy covered by phase-out regulations increases to almost 30%. • Comparison of different approaches for implementing regulations for phasing out fossil fuel boilers. [ABSTRACT FROM AUTHOR]