Abstract
When the foundations for the EU Emission Trade System were laid in 1998, neither renewable energy nor energy efficiency were explicitly taken into account. Now, over a decade later, the EU's climate and energy policy include three-pronged 2020 targets to increase efficiency, reduce greenhouse gas emissions and ensure a minimum share of renewables in the energy mix. However, without careful coordination between the different legislative measures, it is likely that one system will distort the functioning of the other and in the end, the EU will fall short of its bigger energy and climate goals. The Commission's recent Proposal for an Energy Efficiency Directive has been sent to the Parliament and, most recently, a Draft Report has been released by the Committee on Industry, Research and Energy. Against this backdrop, the following article examines the compatibility of the Commission's proposal with the existing Emission Trade System and the Renewable Energy Directive.
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