Europe's climate goals and the electricity sector

► We analyse the EU's climate emissions objectives in 2020 using a computable general equilibrium model. ► We focus on its impact on electricity prices, demand, output, and technology mix in the EU regions. ► We compare alternative realistic and theoretical implementations of policies. ► We find that the electricity generation abates more than its proportional share in emissions. ► The targets are likely met at low carbon cost, and thus unlikely to promote long-term technological change.