ABSTRACT
This chapter analyses the effects of the European Union (EU) Emissions Trading System (ETS) on climate strategies observed in the European electric power industry. The electric power industry constitutes an important pillar for economic growth and welfare, generating vital inputs to all other sectors of the economy. The chapter provides background information on the technical possibilities for the power industry to deal with the climate change problem in the short and long term, as well as the factors that make companies differ in implementation costs. It analyses changes in climate strategies in the electric power industry over the past decade with the situation at the start of the decade taken as baseline. The chapter analyses general observations indicating that the industry has increasingly moved towards more proactive and innovative strategies. It also analyses the role played by company-specific internal and external factors. The chapter provides a comprehensive discussion of co-evolving factors impacting on climate strategies.
