The major economic impacts of the 2030 European GHG emission reduction target on HungaryUploaded: 1 of June, 2014

In early 2014, the European Commission published its recommendation for the climate and energy policy frameworks between 2020 and 2030. This study analyses the effects of the abovementioned recommendation to Hungary, focusing on three key areas with high importance from an economic and energy policy point of view:

  • Analysing the effects of the various levels of possible European GHG reduction targets on the financial viability of Paks 2 nuclear power station, a priority investment proposed by the Hungarian State. This study analyzes how different ETS quota reduction scenarios would affect the return on the nuclear power plant investment based on simulations of the European Electricity Market Model (EEMM) of REKK.
  • Calculating the expected auction revenues of the Hungarian state budget between 2021 and 2030 in case of various ETS quota reduction scenarios.
  • Providing an overview of the expected emission levels in sectors under the so-called Effort Sharing Decision (ESD) – i.e. non-ETS sectors – until 2030 for Hungary, and assessing how these relate to the emission reduction obligations of Hungary following various possible implementation scenarios.