The document discusses the urgent need to combat climate change through an effective energy model and policies that promote low carbon technologies. It emphasizes the importance of an ambitious agreement to limit global warming along with policies that provide the right price signals for technologies, ensuring a transition to a carbon-neutral energy model. A proposed environmental tax reform aims to implement the 'polluter pays' principle to incentivize efficient technologies and support decarbonization efforts.

1. 1
Energy technologies and climate change
Gonzalo Sáenz de Miera
Director of Energy Prospective
Climate Change: Implications for technological
developments and industrial competitiveness
Madrid
4th November 2015

2. 22
Background
• We need to fight climate change
• We need to act as soon as possible. The later we act the greater the cost
• An ambitious and legally enforcing agreement should be reached in Paris.
We can not give up the 2oC goal
• The current energy model is the cause of climate change. And it is also the
solution
• Climate change policies, well defined, may contribute to economic growth
and social prosperity
We need to change the energy model, but in an efficient way

3. 33
The energy sector has a wide range of technologies to address the
problem
Demand
Energy efficiency
A level playing field is important to promote the most efficient
technologies and solutions
Supply
Low carbon sources
Meet the goal on an
efficient basis
COP 21 framework

4. 44
EU energy policies
Electricity sector assumes most of the effort of EU policy goals
As it seems to have the most efficient technologies
2030
40 % (CO2) / 27% (EE) / 27%
(RES)
2020
20 % (CO2) / 20 % (EE) / 20 %
(RES)
Transport / diffuse
sectors
Electricity sector
CO2
RES
EE
RES target: 20%; 27%
Only if measures exist
at national level
ETS / CO2 Price
CO2 signal +
measures
Measures
Electricity
sector
Natural gas Transport

5. 55
Implications of current policy framework on price signal to
technologies for transport
Technologies and consumers do not receive the right price signals
Distorted price signals promote the most polluting technologies
Less pollutants Most CO2 emissions intensive
DieselElectricity
VAT VAT
Other taxes
Other taxes
Other costs (RES)
Other costs
(including RES)
CO2
Unlike diffuse sectors, electricity prices include CO2 cost and RES cost
Price Price

6. 66
Policy proposal: Environmental Tax Reform
Ensure “Polluter pays” principle to give the right signals to all agents and allocate the
cost of the policies needed for the decarbonisation of the economy among energy
consumers
… And would allow economic prosperity
Advantage 1
Signals
Advantage2
Funds
• This CO2 signal should provide incentives for technological change,
and should constitute the basic tool to promote the most efficient
/cleanest energy technologies.
• Tax collection would allow to raise funds to finance
decarbonization goals, supporting the most efficient low
carbon technologies (for instance, RES, EE…)
The environmental tax reform should promote the transition towards an
efficient and carbon neutral energy model…