Modelling Net Zero and Sector Coupling: Lessons for European Policy Makers

Abstract

Net Zero (NZ) is the name given to the policy target of reducing to zero (net) GHG emissions across the economy. In March 2020 the European Commission proposed a European Climate Law aimed at legislating for Net Zero across the European Union, this has recently (as of June 2021) become law having passed through the European Parliament and Council. While the prospects for electricity decarbonisation to 2030 are promising, the necessity of deep decarbonisation of the entire energy system by 2050 remains challenging. Sector coupling is commonly understood as integrating the energy consuming sectors (such as buildings, transport, and industry), and optimising them with the energy supply sector. The joint decarbonisation of the electricity and gas sectors is seen as critical to the achievement of the NZ target in the European Union and the UK. What a NZ implies for energy and environmental policy can be clarified by appropriate energy system modelling.