The EU Energy Package, which has been adopted by the European Commission in January 2007, comprises the threefold objective of simultaneously increasing sustainability, security of supply and competitiveness. In order to implement these objectives, the Energy Package proposes a set of regulations, including the continuation of the EU Emission Trading Scheme, an improvement in energy efficiency as well as an increase of the level in renewable energy in the EU’s overall energy mix to 20 percent in 2020. This research project assesses the macroeconomic and environmental impacts of the implementation of EU renewable energy and climate policy targets. To this aim the study theoretically analyses overlapping regulation by CO2-emission and renewable-certificate trading schemes, develops a comprehensive and coherent economic modeling framework and quantitatively assesses the macroeconomic and environmental effects of EU climate change and renewable energy policies.