This 2020 study from Guidehouse and Cambridge economics looks at the distributional effects of EU climate policy and makes recommendations on steering policy towards a just transition. It combines economic modelling with an assessment of existing policy best practice approaches to analyse the distributional effects of the EU’s key decarbonization policies until 2050, and identifies measures that could be put in place to mitigate the potentially regressive effects. The study aims to help policy makers better understand how climate policies will affect different sections of the economy and provide best practice examples of policy tools which could be deployed to ensure the decarbonization of the EU’s economy is fair and equitable. The analysis includes an assessment of the short-term effects of the macroeconomic shock linked to COVID-19 on the final results.