How do system-wide net-zero scenarios compare to sector model pathways for the EU? A novel approach based on benchmark indicators and index decomposition analyses

The use of scenarios and quantitative modelling to identify pathways for energy system transformations in line with the Paris targets is well established in the field of energy and climate policy. The resulting decarbonization pathways depend on both assumptions and the type of model used (e.g., integrated assessment models, energy system, macro-econometric or bottom-up sector models). The objective of this article is to analyze how energy demand sectors in system-wide net-zero scenarios for the EU compare to the results of sector-specific models. To this end, a novel approach referred to as “sectoral benchmarking” is developed and applied, combining the application of standard indicators such as energy intensity, electrification rate or carbon intensity with an index decomposition analysis. The combined approach allows visualizing how system-wide decarbonization pathways differ from the sector models' pathways by bringing the model output in a harmonized format for an efficient comparison. The analysis compares pathways from four different modelling tools: two European system models, one of which is an energy system model (EU TIMES) and the other a macro-econometric model (NEMESIS); as well as two sector-specific models, for transport (ALADIN) and for the industry and building sectors (FORECAST). ... mehrWe evaluate the system model's net-zero scenarios by comparing them to a corridor given by the sector models' current policy and net-zero emission scenarios. This corridor represents what the sector models deem as plausible from their bottom-up perspective within the boundaries of current policies and ambitions to reach net-zero.