GEM-E3 is a large scale multi-sectoral CGE economic model that covers all countries aggregated to 46 regions. The key innovations of the model relate to the explicit representation of the financial sector, semi-endogenous dynamics based on R&D induced technical progress and knowledge spillovers, the representation of multiple households (the model represents 460 households distinguished by income group), unemployment in the labour market and endogenous formation of labour skills. The model is calibrated to a wide range of datasets comprising of IO tables, financial accounting matrices, institutional transactions, energy balances, GHG inventories, bilateral trade matrices, investment matrices and household budget surveys. All countries in the model are linked through endogenous bilateral trade transactions identifying origin and destination. Particular focus is placed on the representation of the energy system where specialized bottom-up modules of the power generation, buildings and transport sectors have been developed. The model is recursive dynamic coupled with a forward-looking expectations mechanism .