The ENTRACTE research project, funded by the 7th Framework Programme of the European Union, assesses the EU's climate policy portfolio. In order to optimize the policy mix it is crucial to provide a deep understanding of how climate policy instruments interact with each other and with related policy instruments. Mainly, ENTRACTE looks at the European Union Emissions trade System (EU ETS) taking into account its interaction with additional policy instruments such as energy efficiency standards, renewable policies, carbon taxes, innovation policies and trade measures. Practical barriers in the implementation like information asymmetry, uncertainty, political and legal constraints as well as behavioural aspects are considered. The joint endeavour of all project partners allows for a synthesis of research results identifying strengths and weaknesses of different instrument mixes. Based on these findings, ENTRACTE makes a major step in providing practically applicable recommendations for policy makers on how to design the environmentally effective, economically efficient and politically and legally feasible climate policy mix needed to achieve medium-term and long-term GHG reduction targets in Europe.

The project is coordinated by Dr. Oliver Schenker, acting deputy of the Research Department “Environmental and Resource Economics, Environmental Management”  and Professor Dr. Andreas Löschel, former head of this department at the Centre for European Economic Research (ZEW) in Mannheim/ Germany.