Bruegel shows that the fragmentation of EU climate policy leads to inefficient allocation of resources and slows down emissions reductions while also increasing the political cost of climate policy as complicated and inefficient structures establish themselves. Simplifying the rules by linking the different systems to the EU Emissions Trading System as a central hub can massively increase efficiency and speed up convergence, thus improving emissions reductions.
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Bruegel shows that the fragmentation of EU climate policy leads to inefficient allocation of resources and slows down emissions reductions while also increasing the political cost of climate policy as complicated and inefficient structures establish themselves. Simplifying the rules by linking the different systems to the EU Emissions Trading System as a central hub can massively increase efficiency and speed up convergence, thus improving emissions reductions.
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