![]() The ‘technical potential’ is the amount by which it is possible to reduce greenhouse gas emissions or improve energy efficiency by implementing a technology or practice that has already been demonstrated. There is also a technical potential and a physical potential that, by definition, are not dependent on policies. This is the proper theoretical definition of the economic potential, however, as used in most studies, it is the amount of GHG mitigation that is cost-effective for a given carbon price, based on social cost pricing and discount rates (including energy savings but without most externalities), and this is also the case for the studies that were reported in the TAR (IPCC, 2001, Chapters 3, 8 and 9). ![]() Note that estimates of economic potential do not normally assume that the underlying structure of consumer preferences has changed. ![]() non-market costs and benefits such as environmental co-benefits). (as affected by mitigation policies) and when using social discount rates instead of private ones. In order to bring in social costs, and to show clearly that this potential includes both market and non-market costs, ‘economic potential’ is defined as the potential for cost-effective GHG mitigation when non-market social costs and benefits are included with market costs and benefits in assessing the options for particular levels of carbon prices in US$/tCO 2 and US$/tC-eq. policies of market transformation to raise standards of energy efficiency via labelling), then mitigation potentials will become higher. However, if action is taken to improve the functioning of the markets, to reduce barriers and create opportunities (e.g. The baseline is usually historical emissions or model projections, assuming zero social cost of carbon and no additional mitigation policies. In other words, as in the TAR, market potential is the conventional assessment of the mitigation potential at current market price, with all barriers, hidden costs, etc. It is based on private unit costs and discount rates, as they appear in the base year and as they are expected to change in the absence of any additional policies and measures. ‘Market potential’ indicates the amount of GHG mitigation that might be expected to occur under forecast market conditions, including policies and measures in place at the time. Potentials, barriers and opportunities all tend to be context-specific and vary across localities and over time. (From this point onwards, ‘policies’ will be assumed to include policies, measures, programmes and portfolios of policies.) An ‘opportunity’ is the application of technologies or policies to reduce costs and barriers, find new potentials and increase existing ones. ![]() However, the precise definitions are revised and explanations for the revisions are given in the footnotes.Ī ‘barrier’ to mitigation potential is any obstacle to reaching a potential that can be overcome by policies and measures. In addition, the digital single market will digitalise the EU's single market freedoms, with EU-wide rules for telecommunications services, copyright and data protection.The terms used in this assessment are those used in the Third Assessment Report (TAR). The EU is also building a capital markets union, to make it easier for small businesses to raise money and to make Europe a more attractive place to invest. Summaries of EU legislation on the single market.By removing technical, legal and bureaucratic barriers, the EU also allows citizens to trade and do business freely. To do this, it ensures free movement of goods, services, capital and persons in a single EU internal market. The EU aims to enable EU citizens to study, live, shop, work and retire in any EU country and enjoy products from all over Europe.
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