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February 14, 2020
EU Climate Action and Implications for the United States
European Union: A Key Actor
EU GHG Mitigation Efforts
The European Union (EU) has sought to play a leading role
The EU negotiates on behalf of its member states in the
on international climate action for decades. The EU and the
U.N. Framework Convention on Climate Change, including
United States worked closely to negotiate the 2015 Paris
the Kyoto Protocol (KP) and the PA. Under the KP, the EU
Agreement (PA) to combat greenhouse gas (GHG)-induced
met its 2008-2012 obligation and is on track to meet its
climate change. The EU reacted negatively to President
2013-2020 obligation (Figure 1). In the PA, the EU made
Trump’s 2017 decision to withdraw the United States from
an aggregate GHG-reduction pledge in its Nationally
the PA, scheduled to take effect in November 2020. The EU
Determined Contribution (NDC) in which the EU and its
remains committed to the PA and seeks to enhance its
member states commit to a “binding target of at least a 40%
climate policies in light of increasing political pressure
domestic reduction in GHG emissions by 2030 compared to
throughout Europe for more robust action. Still, the EU
1990.” To fulfill the EU’s NDC, each EU member agreed to
faces challenges in reaching consensus on more ambitious
a distinct target that is legally binding within the EU
EU-wide measures. Despite U.S. withdrawal from the PA,
context. The EU’s NDC target covers all GHG not
many Members of Congress are interested in the possible
controlled by the Montreal Protocol on Substances That
geostrategic and economic implications of climate change
Deplete the Ozone Layer, including carbon dioxide (CO2),
and international mitigation efforts. (Table 1 compares
from the energy sector, industrial processes, product use,
selected U.S. and EU GHG emissions indicators.) U.S.-EU
agriculture, waste, and net removals by land use, land-use
frictions on climate policies also may affect broader U.S.-
change and forestry.
EU relations. (See CRS In Focus IF10668, Potential
Implications of U.S. Withdrawal from the Paris Agreement
The EU’s NDC target is the same as the binding target
on Climate Change, by Jane A. Leggett.)
agreed in 2014 in the EU’s 2030 Climate and Energy
Framework. To help achieve this target, the EU adopted
Table 1. Selected GHG Emissions Indicators
legislation in 2018 to reform and strengthen its Emissions
EU
U.S.
Trading System (ETS), which limits CO2 emissions from
energy-intensive companies and installations. Also in 2018,
Total GHG Emissions in 2016 3.6 Gt CO2e
5.8 Gt CO2e
the EU updated legislation to curb emissions in sectors not
GHG Emissions per Capita in
7.1 t CO
covered by ETS (including buildings, transport, waste, and
2e
18.1 t CO2e
2016
agriculture) and legislation to ensure no net emissions from
the land use and forestry sectors.
GHG Emissions per Million $
220 t CO2e
310 t CO2e
GDP in 2016
The EU also views transitioning to “cleaner” energy as
Share of Global GDP based
16.8%
15.6%
crucial to reducing emissions. In 2018 and 2019, the EU
on Purchasing Power Parities
finalized several measures to promote clean energy,
in 2016
including setting stricter energy efficiency and renewable
Share of Global CO
goals for 2030. EU officials estimate that, once fully
2
10%
14.5%
Emissions Related to Energy
implemented, these new policies will lead to steeper
in 2017
emission reductions than previously anticipated, cutting EU
emissions by 45% by 2030 compared to 1990 levels.
Sources: World Resources Institute, Climate Watch 2020;
International Monetary Fund, World Economic Outlook 2016;
A Proposed European Green Deal
International Energy Agency, Key World Energy Statistics 2019.
Notes: CO
European public demands for stronger climate action are
2 = carbon dioxide; CO2e = carbon dioxide-equivalent:
the tons of CO
growing, as seen by gains for pro-environment “green”
2 that would have the equivalent effect of 1 ton of the
GHG on forcing global average temperature. Units used are metric:
parties in recent European elections (including those in
t = metric ton; Gt = gigaton, or 1 billion metric tons.
2019 for the European Parliament, the EU’s only directly
elected institution). In December 2019, the new European
EU Climate Action Policies
Commission (the EU’s executive) proposed a European
Green Deal as its flagship initiative for its 2019-2024 term.
In the EU context, environmental policy—including climate
action—is an area of shared competency in which both the
The European Green Deal sets out a multipronged approach
EU and its 27 member states may adopt legally binding
to climate change and other environmental challenges,
acts. All EU members must abide by agreed EU laws and
while promoting resource-efficient economic growth and
regulations on climate action, and national laws or policies
innovation. Key elements include increasing the EU’s 2030
must not conflict with or undercut common EU measures.
emissions reduction target from 40% to at least 50% from
https://crsreports.congress.gov
EU Climate Action and Implications for the United States
1990 levels and adopting in EU law the goal of a climate-
neutral economy (no net GHG emissions) by 2050.
Figure 1. EU Historical GHG Emissions and Emissions Projections
(based on targets and pledges)
Source: Graphic created by CRS, based on data from Climate Action Tracker, https://climateactiontracker.org/methodology.
Notes: LULUCF = Land Use, Land Use Change and Forestry; NDC = Nationally Determined Contribution; QELROS = Quantified Emission
Limit or Reduction Objectives.
The EU’s Kyoto targets were 8% below 1990 emissions levels (average 2008-2012) and 20% below 1990 levels (average 2013-2020). The
EU’s 2020 pledge (from 2009) is a 20%-30% reduction below 1990 emissions levels by 2020, conditional on developed countries committing
to comparable efforts and developing countries contributing according to capabilities. The EU’s 2030 unconditional target (in its NDC
from 2015) is to reduce GHG (greenhouse gas) emissions at least 40% below 1990 levels by 2030. In projections to 2030, the higher trajectory
reflects biennial reporting by EU member states and policies adopted as of 2017. The lower bound assumes full implementation of existing EU
directives on renewable energy and energy efficiency.
The European Green Deal pledges a “just and inclusive
Ongoing Challenges
transition” in which no segments of EU society are “left
behind” economically
Several EU members, including Germany, face challenges
. The European Commission
in meeting existing GHG targets through domestic efforts
announced plans to mobilize at least €1 trillion (about $1.08
alone. These countries may meet their EU obligation by
trillion) over the next decade for the European Green Deal
acquiring extra GHG reductions from other EU member
from the EU budget and financial institutions, member
states. Reflecting concerns about the costs of existing and
states, and private investors. This funding is expected to
anticipated climate policies, certain business sectors and
include a €100 billion (about $108 billion) Just Transition
member state governments have expressed a degree of
Mechanism for regions dependent on carbon-intensive
resistance to setting more ambitious EU climate goals.
activities and fossil fuels (for example, in Central Europe
Poland, for example, remains reluctant to commit to a
and the Baltic states).
GHG-neutral EU by 2050 given its reliance on coal and is
In its proposal for the European Green Deal, the European
tying its support to greater EU financial assistance. In
Commission suggests the EU might consider implementing
Belgium and Germany, reducing GHG emissions is made
a future “carbon border adjustment mechanism”—such as a
more difficult by cutbacks in nuclear power generation.
carbon border tax—to reduce risks to competitiveness and
Some observers also contend that the EU’s institutional
of carbon emission shifts to countries with less ambitious
structure and bureaucracy could impede the holistic
climate policies. In addition, the European Commission
approach envisioned in the European Green Deal.
plans to adopt a more robust EU strategy on adaptation to
Implications for U.S.-EU Relations
climate change in recognition that many European regions
will remain vulnerable despite mitigation efforts. The
EU efforts to step up its climate action policies and
European Commission also intends to propose new EU
elements of the proposed European Green Deal may
strategies on biodiversity, industrial policy, sustainable
exacerbate U.S.-EU tensions. The EU has pledged that it
food, and a circular (waste-minimizing) economy. Any
will not conclude future free trade agreements with
legislation proposed in the European Green Deal must be
countries that are not parties to the PA, creating another
approved by the member states (acting in the Council of the
potential friction point in already fraught U.S.-EU trade
EU) and the European Parliament to become EU law, a
talks. Some analysts suggest that possible EU carbon border
process that often can take two years or more. In January
adjustments could increase costs for U.S. firms doing
2020, the European Parliament passed a nonbinding
business in Europe. U.S.-EU frictions also may mount if a
resolution in support of the European Green Deal.
perceived lack of U.S. engagement and cooperation on
climate issues impedes the EU’s ability to convince other
countries to pursue more robust GHG-mitigation measures.
https://crsreports.congress.gov
EU Climate Action and Implications for the United States
Kezee Procita, Senior Research Librarian
Kristin Archick, Specialist in European Affairs
IF11431
Jane A. Leggett, Specialist in Energy and Environmental
Policy
Disclaimer
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