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And what additional complications arise from the undeniable fact that new and old EU member states differ in their stages of economic development? CCU and CCS may have the potential to decarbonize existing industrial infrastructure, reduc- ing the risk of stranded assets. CCU, in particular, could generate options for industrial symbioses between industries, i.e. between iron and steel or cement and the chemicals industry. Developing technologies, reducing costs, and setting up economic incentives, Europe can generate large positive externalities for global climate policy. According to the key dimension of “involvement”, research on the development of European regulation can only be one, albeit indispensable, aspect of further research efforts. In particular, it is critical that different stakeholder groups be placed under the scrutiny of further research efforts: From the perspective of investors and the (chemical) industry, political reliability is impor- tant. What are the (regulatory) drivers and impediments to developing new business models (e.g. re-use and recycling)? What is the outlook on the challenge to supply sufficient energy in the future and how is this related to potential relocation (carbon leakage)? What instruments have the potential to effectively prevent carbon leakage (for instance, carbon border adjustments)? From the consumer perspective, consumption and investment decisions (for example, to pur- chase appliances or vehicles) and their effects on household budgets should be analyzed, keeping in mind the lump-sum nature of such purchases. For the consumer, there is an intrinsic cost to emissions avoidance, and it will be important to explore which regulatory arrangements could supplement carbon pricing to help consumers avoid emissions. The consumer perspective is also important with regard to recycling systems. To close the plastic (carbon) cycle in particular, func- tional recycling and waste collection systems are crucial. They must be technically advanced while also being accepted by consumers, so methods to increase consumer involvement, such as incentives, are important. It is also important to consider the perspective of policy makers. Governments have a legit- imate interest in safeguarding the stability of tax revenues and public finances in general so they may continue to provide public goods. Various instruments involved in European climate policy and regulation could influence these financial systems. Further research is needed to estimate the magnitude of these effects and devise alternative approaches to achieve stable public finances. Technological innovation and industrial transformation will be subject to potential public ob- jection. Therefore, public acceptance and a broader stakeholder perspective is important. Research should identify how to involve stakeholders at the European level, how increased participation could be achieved, and what (if any) kind of monitoring tools could help. Furthermore, a dynamic perspective must be considered. The role of technological ad- vances and progress as driving forces need to be addressed, for example, development of energy- efficient, flexible storage technologies, demand-side management techniques, and advanced efficiency achieved via transcending sectoral boundaries. 124PDF Image | sustainable production of fuels and chemicals
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