A strategic energy technology policy towards 2050 : no-regret strategies for European technology push

Abstract

As current policy frameworks are expiring in 2020, the EU is revisiting its energy technology policy for the post-2020 horizon. The main long-run objective for energy technology policy is to foster the achievement of ambitious EU goals for decarbonisation by 2050. Given this objective, we discuss how European energy technology policy towards 2050 can be effective despite i) uncertain carbon prices, ii) uncertain technological change and iii) uncertain or alternating policy paradigms shifting its focus from decarbonisation to competition or security of supplies. Public support to innovation in energy technologies is needed to correct for market failures and imperfections, as well as to fully exploit trade opportunities of such technologies on the world market. Benefits from EU intervention can be expected from the coordination of national policies. Effective European technology push should put strong emphasis on pushing consumption-oriented and enabling technologies, as these offer a no-regret strategy vis-à-vis any future context.