{"id":6238,"date":"2025-05-15T09:27:04","date_gmt":"2025-05-15T09:27:04","guid":{"rendered":"https:\/\/climease.com\/?p=6238"},"modified":"2025-07-18T07:17:26","modified_gmt":"2025-07-18T07:17:26","slug":"avoiding-double-counting-why-indirect-emissions-are-likely-to-remain","status":"publish","type":"post","link":"https:\/\/climease.com\/de\/avoiding-double-counting-why-indirect-emissions-are-likely-to-remain\/","title":{"rendered":"Vermeidung von Doppelz\u00e4hlungen: Warum indirekte Emissionen wahrscheinlich auch nach 2026 au\u00dferhalb von CBAM bleiben werden"},"content":{"rendered":"
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The Marginal Pricing Mechanism for Electricity in Europe<\/span><\/span>\u00a0<\/span><\/h2>

In the European electricity market, prices are set through a marginal pricing mechanism. Power generators submit bids indicating the price at which they can produce electricity, ranked from the lowest to the highest cost. The price for a given period is then set by the last (i.e., most expensive) unit of electricity required to meet demand\u2014a concept often known as the merit order (European Commission, 2020a).<\/p>

Because many renewable energy sources, such as wind and solar, have near-zero marginal costs, they are dispatched first. However, during periods of high demand or low renewable output, the market turns to fossil fuel generators with higher operating costs. These generators set the marginal price that all market participants pay, regardless of which source produced their electricity.<\/p>

High Electricity Prices and Their Impact on Energy-Intensive Sectors<\/h2>

The reliance on fossil fuel plants to set market prices means that electricity costs in the EU tend to be high during peak demand periods. Indeed, even if fossil fuel plants are more expensive to operate and have significant carbon costs under the EU ETS, they are required when renewable energy supply is insufficient (European Commission, 2020b).<\/p>

Compensation for Energy-Intensive Sectors<\/h2>

Industries highly sensitive to electricity prices, such as aluminum, iron\/steel, and hydrogen, are particularly affected by these high costs. To ensure these industries remain competitive and prevent carbon leakage, the EU has implemented compensation mechanisms. These funds help to mitigate the financial burden imposed by high electricity costs resulting from the marginal pricing system (European Commission, 2021).<\/p>

Policy Scenarios: Keeping Compensation vs. Expanding CBAM Scope<\/h2>

Currently, CBAM excludes indirect emissions from aluminum, hydrogen, and iron\/steel after 2026. However, two policy paths are possible:<\/p>

Scenario 1: Maintain Compensation & Keep Indirect Emissions Outside CBAM<\/em><\/p>