Conclusions and Outlook

The EU energy landscape is changing, driven by the need to reduce emissions and increase security of supply. Policy instruments to encourage decarbonization such as carbon pricing should include technology-based and behavior-based instruments to facilitate this transition to a low-carbon economy. The impact of available fossil fuel resources in the EU may still raise questions around how Member States reconcile their commitments to the 2°C goal with their seeking to produce all indigenous fossil fuel reserves (e.g., as in the UK). While many EU Member States have very limited hydrocarbon resources, shale gas production could significantly improve security of gas supply and reduce energy dependence in Europe. However, the conditions of extraction are less favorable in Europe than in the US. Finally, for aviation, the main obstacle to the widespread uptake of biofuels is not due to technical constraints but rather is economic in nature.