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The EU has established the world's first cross-border emission-trading systems (ETS) for greenhouse gas (GHG) emissions, currently covering aviation, emission-intensive sectors, and electricity (EITE). The EU Commission has offered to apply emissions trading in new sectors where emissions from maritime transport will be incorporated into the current EU ETS, while a separated emissions trading system will cover emissions from road transport and the building sector. This paper employs a multi-regional multi-sectoral computable general equilibrium (CGE) model with two simultaneous international emission permit markets. After examining the abatement costs for the EU regions, various policy scenarios are implemented to study the welfare effects of forming an ETS covering the sectors other than EITE (NEIT) and its linking with the EITE sectors under two different baselines and four emission reduction targets. The results provide several important insights: (i) Marginal abatement costs in Germany and the Eastern European Union region (EEU) are significantly lower than in the rest of the EU regions. (ii) The carbon price in the emission permit market covering NEIT is significantly higher than the carbon price in the emission permit market covering EITE. (iii) Germany and EEU appear as notable suppliers of emission permits in both markets. (iv) There is a significant aggregate welfare gain under the scenario in which the ETS covering NEIT co-exists parallel with the ETS covering EITE. (v) The aggregate welfare in the EU under the full integration of EITE and NEIT may fall below its value under the scenario with two parallel emission permit markets. [ABSTRACT FROM AUTHOR]

Hydrogen is regarded as a key component of future low-carbon energy systems. Yet, for the implementation of hydrogen technologies on a large scale it is necessary to consider social acceptance. Studies on acceptance of hydrogen technologies have resulted in neutral to positive evaluations. This paper extends previous studies by focusing on large-scale hydrogen infrastructure. Within the project ELEGANCY, quantitative data on the acceptance was gathered among the German population. The results confirm the positive perception of hydrogen on a general level. However, the high level of acceptance is decreasing when it comes to infrastructure implementation in the own neighbourhood. In this paper, the gap between acceptance of hydrogen technology on a general level and the level of its infrastructural implementation is analysed, focusing on new pipeline infrastructure. The results show that sociodemographic factors, especially the variable age, as well as project-related factors, especially trust in stakeholders, have a high explanatory power. • Hydrogen technology is highly accepted in the German population. • Acceptance is decreasing, when it comes to large-scale infrastructure. • Effects of NIMBY are related to project-related, personal and place-based factors. • NIMBYism can be addressed through increasing trust in stakeholders. [ABSTRACT FROM AUTHOR]

The widely recognised Energiewende, ("energy transition") in Germany has lost its original momentum. We therefore address the question of how the transition process to a new energy system can be reignited. To do so, we developed the "5Ds approach", which lays the groundwork for a process analysis and the identification of important catalysts and barriers. Focusing on the five major fields required for the energy transition, we analyse the effects of: (1) Decarbonisation: How can efficiency and renewable energies be expanded successfully? (2) Digitalisation: Which digital solutions facilitate this conversion and would be suitable as sustainable business models? (3) Decentralisation: How can potential decentralised energy and efficiency opportunities be developed? (4) Democratisation: How can participation be strengthened in order to foster acceptance (and prevent "yellow vest" protests, etc.)? (5) Diversification of service: Which services can make significant contributions in the context of flexible power generation, demand-side management, storage and grids? Our paper comes to the conclusion that German policy efforts in the "5D" fields have been implemented very differently. Particularly with regard to democratisation, the opportunities for genuine participation among the different social actors must be further strengthened to get the Energiewende back on track. New market models are needed to meet the challenges of the energy transition and to increase the performance of "5D" through economic incentives. [ABSTRACT FROM AUTHOR]

The impact of international trade on national decarbonization outcomes is inconclusive. Taking Germany as a case study, we developed a relative intersectoral linkage analysis based on the global value chain (GVC) framework. We identified nations' emission changes due to the transition of composition, scale, and technology in the fragmented trade network. The results show that in the process of reducing emissions, on the one hand, the supply of local emission-intensive sectors to the domestic economy and international trade has shrunk. On the other hand, we found comprehensive emission intensity reduction driven by downstream sectors' production, even if there was carbon leakage in the participation of backward GVCs. However, when emission-intensive production was concentrated in the local market, GVC backward participation positively affected the emission intensity of the local economy. According to the findings, we assert that continuous technological innovation and reconstruction of the value chain are necessary for sustainable decarbonization from the local to the global economy. • Decarbonization sustainability of Germany during trade fragmentation is analyzed. • Intersectoral linkage analysis based on Global Value Chain framework and RCA index. • Indirect backward GVC participation caused carbon leakage in the energy sector. • Sustained demand for innovation promotes decarbonization rather than trade control. • Intensifying linkage with cleaner production in domestic market is essential. [ABSTRACT FROM AUTHOR]

Organisations attempt to contribute their share towards fighting the climate crisis by trying to reduce their emission of greenhouse gases effectively towards net zero. An instrument to guide their reduction efforts is internal carbon pricing. Next to choosing the right pricing tool, defining the exact value of an internal carbon price, especially against the background of potential regulatory external carbon prices, and assessing its impact on business units' energy systems poses a challenge for organisations. The academic literature has so far not examined the impact differences of an internal carbon price across different countries, which this paper addresses by using an optimisation model. First, it analyses the energy system cost increase of a real-world facility based on an internal carbon price compared to a potential regulatory carbon price within a country. Second, we evaluate the energy system cost increase based on an internal carbon price across different countries. The results show that with regard to internal carbon prices the additional total system cost compared to potential external carbon prices stays within 9%, 15%, and 59% for Germany, Japan, and the United Kingdom, respectively. The increase in the energy system cost in each country varies between 3% and 93%. For all countries, the cost differences can be reduced by allowing the installation of renewables. The integration of renewables via energy storage and power-to-heat technologies depends on the renewable potentials and the availability of carbon capture and storage. If organisations do not account for these differences, it might raise the disapproval of internal carbon prices within the organisation. [ABSTRACT FROM AUTHOR]

Industrial processes are associated with high amounts of energy consumed and greenhouse gases emitted, stressing the urgent need for low-carbon sectoral transitions. This research reviews the energy-intensive iron and steel, cement and chemicals industries of Germany and the United Kingdom, two major emitting countries with significant activity, yet with different recent orientation. Our socio-technical analysis, based on the Sectoral Innovation Systems and the Systems Failure framework, aims to capture existing and potential drivers of or barriers to diffusion of sustainable industrial technologies and extract implications for policy. Results indicate that actor structures and inconsistent policies have limited low-carbon innovation. A critical factor for the successful decarbonisation of German industry lies in overcoming lobbying and resistance to technological innovation caused by strong networks. By contrast, a key to UK industrial decarbonisation is to drive innovation and investment in the context of an industry in decline and in light of Brexit-related uncertainty. [ABSTRACT FROM AUTHOR]