Climate policy: Constant reversals are harmful

One of the key factors for the success of climate policy is its stability. Constant reversals in targets and instruments are extremely harmful. Without sufficient planning certainty regarding future climate policy – that is, if a watering down of European ambitions is always to be expected – companies will not make the necessary investments in low-carbon technologies.

In light of the energy and economic crisis, criticism of European climate policy is growing ever louder – particularly regarding the trading of CO₂ emission allowances. In an article in Die Zeit, the Franco-German Council of Economic Experts endorses the instrument.

The authors of the article are Monika Schnitzer, Martin Werding, Achim Truger and Ulrike Malmendier, as well as Xavier Ragot, Katheline Schubert, François Fontaine and Fanny Henriet, who are also members of the French Conseil d’analyse économique (CAE).

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