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Co-author 1: A.W.N. van Dril

The present study analyses the potential interactions between the EU Emissions Trading Scheme (EU ETS) and some selected energy and climate policy instruments in the Netherlands.
These instruments include:
• The Benchmarking Covenant (BC): a negotiated agreement with energy-intensive industries
in order to improve their energy efficiency.
• The Regulatory Energy Tax (REB): an ecotax on the consumption of gas and electricity, including
the partial exemption of this ecotax on renewable electricity.
• The Environmental Quality of Electricity Production (MEP): a feed-in subsidy system for
producers of renewable electricity.
• The system of Tradable Green Certificates (TGCs): a system of guarantees of origin to
promote renewable electricity based on the partial exemption of the REB.

A general finding of the present report is that once the EU ETS becomes operational, the effectiveness of all other policies to reduce CO2 emissions of the participating sectors becomes zero. The report explores the specific implications of this general finding for the coexistence of the EU ETS and the selected policy instruments in the Netherlands. It concludes that this coexistence will have a significant impact on the performance of both the EU ETS and the selected instruments in the Netherlands.