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In a new report, the European Scientific Advisory Board on Climate Change provides recommendations on methodologies for a harmonised energy system-wide cost-benefit analysis at EU level.

Energy supply and use represent 77 % of the EU’s total greenhouse gas emissions. It is therefore critical that the EU’s energy network development supports the transition towards renewable-based and efficient energy systems while avoiding further lock-ins into fossil infrastructure. It should also safeguard the resilience of the EU’s energy infrastructure to the unavoidable impacts of climate change.

With this advice, the Advisory Board aims to ensure that the development of trans-European energy networks supports the required transition towards climate neutrality and climate resilience in the European Union by 2050.

The Advisory Board found that the ten-year network development plan (TYNDP) process does not sufficiently address the transformational changes and rapid reductions in greenhouse gas emissions necessary to achieve the EU’s climate neutrality and climate resilience targets by 2050. This observation pertains to the entire TYNDP process, in particular the scenario development, system needs assessment and cost-benefit analysis (CBA), and the subsequent selection of Projects of Common Interest (PCI) and Projects of Mutual Interest (PMI).

The Advisory Board advises ENTSO-E, ENTSO-G, ACER, and the European Commission to follow immediately these recommendations in their work relevant to the TYNDP and PCI/PMI processes, including the cost-benefit analysis (CBA) methodology, to help the EU deliver on its climate neutrality target by 2050.

Read more about the Advisory Board’s recommendations and accompanying letter to ENTSO-E, ENTSO-G, ACER, and the European Commission here.