A comprehensive socio-economic assessment of the increased 2030 EU climate target

With the European Green Deal, the European Commission wants to bring the European Union on track towards reaching climate neutrality by 2050. Recently, it proposed a new, more stringent target for 2030 – a reduction of greenhouse gases to 55% below 1990 levels. To evaluate the implications of the more ambitious target, a comprehensive impact assessment analysed various aspects, including socio-economic consequences. Here, we present the modelling framework used to derive macro-economic and sectoral impacts, closely aligning the economic modelling to energy system modelling. The modelling toolbox further included tools to decompose aggregate results of a computable general equilibrium model; in particular, we downscale labour market outcomes to skill and occupation levels and household responses to distributional impacts.