Abstract
When it was adopted in 2009, the energy and climate policy package created by the European Union (EU)?which consisted of targets for renewable energy consumption (20%), greenhouse-gas (GHG) emissions reductions (20%), and energy savings (20%), all to be met by 2020?was hailed as some of the world?s most advanced legislation for moving toward a more sustainable and secure energy system. Although Europe seems on track to hit the GHG reduction and renewable energy targets, the current policy framework has also led to some blurred investment signals and a decrease in the profitability of utilities.
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