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The integration of climate policy concerns in other policy areas where decisions are taken that determine greenhouse gas emissions is a prerequisite for effectively mitigating climate change. There are particularly strong interlinkages between energy and climate policy as the major part of greenhouse gas emissions is related to energy supply and use. We compile a set of five output-focused indicators for assessing climate policy integration (political commitment, functional overlap, policy instruments, weighting, and time perspective). We then apply the criteria for an appraisal of climate policy integration in European Union (EU) energy policy during the last decade;that is, we focus on climate policy integration from a horizontal perspective. The focus of our research lies on the comparison of the Renewable Energy and the Energy Efficiency Directives of the Energy Union Package with their predecessors.Our results show that climate change mitigation is a key objective in these documents. The energy policy objectives are generally synergetic with climate policy. The Energy Union Package makes progress in some areas like the more stringent EU targets for renewable energy and energy efficiency or the more stringent sustainability criteria for biofuels. However, some conflicting issues arise. The shift from national to an overall EU renewables target and the change towards more market-oriented support schemes might together with the elimination of preferential grid access for renewable electricity entail negative impacts on renewable investment and on achieving emission reductions. It remains to be seen whether the adaptations in EU energy policy will lead to the required acceleration of the energy transition. K E Y W O R D S climate policy, climate policy integration, energy policy, European Union

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EU climate and energy policy defines ambitious objectives for the Member States, requiring a fundamental change in energy systems. In an interdisciplinary approach, starting with welfare-generating energy services instead of energy flows, we analyse restructuring options for the Austrian energy system. We extend the concept of stabilization wedges by Pacala and Socolow and integrate technological and behavioural options into a structural energy model, complemented by an economic evaluation in an input-output analysis. We apply the energy service based approach to a transformation of the Austrian energy system that meets the EU 2020 emission targets. We estimate that this would require on average additional investment of about 6 billion € p.a. over a twelve year period. This investment allows to tap savings in operating costs (predominantly energy costs) of up to 4.3 billion € at the end of the period, when using a conservative assumption of non-rising energy prices.

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