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Economic Policy Committee

Working Group on Energy and Climate Change


The EU has set ambitious climate and environmental targets with the European Green Deal (climate neutrality by 2050) and the enhanced 2030 target of 55% net greenhouse gas emissions reduction from the 1990 level. Achieving these targets will require fundamental reform of European policy in all sectors during the coming years up to 2030, and beyond.

Within this context, the role of the Working Group on Energy and Climate Change of the Economic Policy Committee (the Working Group of the EPC) is to assist and prepare the EPC's work on the economic and financial aspects of the European Green Deal - in particular related to climate and energy policy - international climate policy and of the EU Energy Union. The main objective is to share and examine evidence on the economic implications of achieving the EU’s energy and climate change ambitions and to share best practices on cost-effective instruments for delivering these objectives.

To this end, the working group will focus on priority issues within its area of expertise, namely the macro-economic and distributional aspects of climate and energy policies, as well as other related issues, such as environmental matters. It includes, inter alia, cost-effective mitigation and adaptation instruments for delivering climate change objectives and international climate finance issues.

Main tasks

The Working Group will undertake the following role (subject to priorities of the EPC, EFC and the Council Presidency):

  • Contributes to the economic analysis of implementing the European Green Deal, including but not limited to:
  • policy options to meet EU energy and climate objectives beyond 2020, as well as the objectives of other proposals related to the European Green Deal;
  • EU energy and climate framework, including investment-related issues;
  • the transition to a sustainable economy, including the energy transition and its impact on economic dimensions.
  • Contributes to increasing understanding and monitoring of aligning financial flows with the mitigation and adaptation/resilience goals in accordance with Article 2.1 c) of the Paris Agreement. This, inter alia, covers Paris alignment strategies and efforts by Multilateral Development Banks, Domestic Finance Institutions and Export Credit Agencies as well as by the private sector.
  • Monitors and reports to the EPC on the energy, climate and environmental aspects of the European Semester and of the Recovery and Resilience Facility/ Next Generation EU recovery package.
  • Examines and provides analysis on the macroeconomic and financial implications of policy options and instruments to meet EU energy and climate objectives, in particular but not exclusively through carbon pricing, other market-based instruments, as well as other types of regulatory instruments.
  • Prepares draft ECOFIN Council Conclusions on the climate finance aspects of the EU position for international climate negotiations; addresses other issues of relevance to finance ministers as needed, linked to possible developments in the international negotiations.
  • Supports the integration of energy, climate and environmental aspects in EU economic, budget and finance policies and coordination.
  • Supports, as appropriate, the Energy Union governance (National Energy and Climate Plans).
  • Supports and stands ready to provide input on the development of assessment and monitoring tools and to enable Member States to analyse the climate, environmental and economic impacts of climate change mitigation and climate change adaptation, as well as energy transition.
  • Works with EPC and with the Presidency of the Council of the EU to assist with the Ecofin Work Plan on Climate Action, where appropriate and necessary. Finally, the working group will also provide ad-hoc inputs on specific issues at the request


The Working Group comprises two delegates from each Member State, the Commission, and the ECB. They are officials from the authorities responsible for formulating economic and structural policy.

Working Practices

The Working Group meets both virtually and in physical format and reports to the EPC regularly.