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The electrification of transport in Europe is in the early stages of a market transformation that has the potential to significantly cut emissions in both the transportation and energy sectors, while generating wider benefits for society. The research underpinning this study finds that the greatest value from integrating electric vehicles (EVs) into the power grid can be generated by charging them when and where it is most beneficial for the power system, while ensuring consumers’ mobility needs are met at an affordable cost. An emerging body of research on electric vehicle grid integration focuses on modeling the cost of integration under various scenarios, but few studies look at the existing promising practices that are based on policy tools in use today. The authors of this study conducted a qualitative review of policies for EV grid integration in the EU and U.S. markets. We found that, in order to unlock the environmental and economic opportunities associated with market uptake, three policy strategies are most effective: costreflective pricing, intelligent technology, and integrated infrastructure planning. The study also explores the implications of these practices for policymakers and regulators in the EU.

Auctioning revenues in the European Union Emissions Trading System are likely to increase in the future. This projection is driven by recent changes within the system's framework, which address the current surplus of emission allowances and reduce the overall cap. Considering a growing amount of auctioning revenues, it becomes even more important to assess the use of these revenues and their potential contribution to accelerate decarbonisation efforts. We argue that strategic investments in energy efficiency programmes provide opportunities for realising multiple benefits: additional emission reductions from both ETS and nonETS sectors, lower economic and societal decarbonisation costs and support for the political process to further tighten the ETS cap. Our assessment of the status of auctioning revenue use at the EU Member State level shows that Member States have made only limited use of these multiple benefits in recent years. In 2017, no more than 21.4% of total revenues have been strategically invested in energy efficiency programmes, as Member States have officially reported to the European Environment Agency's reporting obligations database. However, efficiency programmes funded by auctioning revenues in Germany and Czech Republic present promising cases for the strategic use of auctioning revenues. We conclude that the EU carbon price can provide important signals to investors and energy users, but auctioning revenues can also be a powerful tool in the energy transition and the strategic use of revenues needs to be accelerated in all Member States.

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