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Updated April 6, 2021
EU Climate Action and Implications for the United States
The European Union: A Key Actor
EU Greenhouse Gas 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. It worked
U.N. Framework Convention on Climate Change,
closely with the United States to negotiate the 2015 Paris
including the Kyoto Protocol (KP) and the PA. Under the
Agreement (PA) to combat greenhouse gas (GHG)-induced
KP, the EU met its 2008-2012 obligations and, by 2019,
climate change. The 27-member EU and the United
had surpassed its 2013-2020 obligation of 20% below
Kingdom (UK)—which exited the EU in January 2020—
1990-level GHG emissions (Figure 1). In the PA, the EU
have welcomed President Joe Biden’s decision to rejoin the
committed in its initial Nationally Determined Contribution
PA (reversing the U.S. withdrawal carried out by the
(NDC) to an aggregate “binding target of at least a 40%
former Trump Administration). Biden Administration
domestic reduction in GHG emissions by 2030 compared
climate positions are expected to align with EU views in
to 1990.” In December 2020, following agreement by all
many respects. The 117th Congress may compare EU
member states, the EU updated its NDC to an enhanced
climate action policies with Biden Administration plans
target of at least a 55% reduction in GHG emissions by
and may assess prospects for and challenges to U.S.-EU
2030 compared with 1990 levels. (To fulfill the EU’s
cooperation on climate change and mitigation efforts in the
collective NDC, each EU country agrees to a distinct target
years ahead. (Table 1 compares selected U.S. and EU
that is legally binding within the EU context.) The EU’s
GHG emissions indicators.)
NDC target covers all GHG not controlled by the Montreal
Table 1. Selected GHG Emissions Indicators for 2018
Protocol on Substances That Deplete the Ozone Layer,
including carbon dioxide (CO2), from the energy sector,
EU-27
U.S.
industrial processes, product use, agriculture, waste, and
net removals by land use, land-use change, and forestry
Total GHG Emissions
3.5 Gt CO2e
5.9 Gt CO2e
(LULUCF).
GHG Emissions per Capita
7.9 t CO2e
18.1 t CO2e
To help achieve its initial NDC target, the EU pursued
GHG Emissions per Mil ion
220 t CO2e
288 t CO2e
several measures. It reformed and strengthened its
$ GDP
Emissions Trading System (ETS), which limits CO2
Share of Global CO2
8.4%
14.7%
emissions from energy-intensive companies and
Energy-Related Emissions
installations. The EU adopted legislation to reduce
Sources: World Resources Institute, Climate Watch 2021;
emissions in other sectors (including buildings, transport,
International Energy Agency, Key World Energy Statistics 2020.
waste, and agriculture) and to ensure no net emissions from
Notes: CO
the land use and forestry sector. The EU also views
2 = carbon dioxide; CO2e = carbon dioxide-equivalent:
the tons of CO
transitioning to “cleaner” energy as crucial to reducing
2 that would have the equivalent effect of 1 ton of the
GHG on forcing global average temperature. Units are metric:
emissions, and it established stricter energy efficiency and
t = metric ton; Gt = gigaton, or 1 bil ion metric tons. Although the
renewable goals for 2030.
UK was a member of the EU in 2018, EU data exclude the UK.
Many in the EU view the new minimum 55% emissions
EU Climate Policies and Challenges
reduction target as a key step toward helping the EU reach
its 2050 climate-neutrality goal and as significant for
The EU designates environmental policy—including
overcoming years of resistance from Poland and other
climate action—as an area of shared competency in which
member states more reliant on coal and fossil fuels .
both the EU and its member states may adopt legally
Environmental groups and some in the European
binding acts. All EU members must abide by agreed EU
Parliament, however, contend the new target remains
laws and regulations on climate action, and national laws or
insufficient to contain global warming to the levels called
policies must not conflict with or undercut common EU
for in the PA. Germany is one of only a few countries to
measures. European public demands for stronger climate
enact legislation requiring “net greenhouse gas neutrality”
action are growing, as seen by results from recent European
by 2050. A number of EU countries likely will need to
elections (including those in 2019 for the European
make structural changes and implement further measures to
Parliament, the EU’s only directly elected institution). The
meet their shares of the EU 2030 targets; these countries
EU has set a goal of a climate-neutral economy (no net
may meet their EU obligations in part by acquiring extra
GHG emissions) by 2050 and has pledged to put “green”
GHG reductions from other EU member states. For some
policies at the center of its Coronavirus Disease 2019
EU members, such as Belgium and Germany, reducing
(COVID-19) economic recovery plans. Of the EU’s €1.85
GHG emissions is made more difficult by cutbacks in
trillion (about $2.2 trillion) pandemic recovery and 2021-
nuclear power generation. The EU is expected to unveil
2027 budget package, 30% of total expenditure is to be
devoted to climate objectives.
https://crsreports.congress.gov
EU Climate Action and Implications for the United States
new legislative proposals in June 2021 to help meet the
new 55% emissions reduction target.
Figure 1. EU Historical GHG Emissions and Emissions Projections
(based on targets and pledges for the EU-27)
Source: Graphic created by CRS, based on data from the European Environment Agency, at https://www.eea.europa.eu/data-and-maps/daviz/
greenhouse_gas_trends_and_projections#tab-chart_1.
Notes: LULUCF = Land Use, Land-Use Change, and Forestry; NDC = National y 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); its actual net emissions including acquired international offsets were below the target levels in both periods. The
EU’s pledge for 2020 (made in 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 updated NDC target is to
reduce GHG emissions to at least 55% below 1990 levels by 2030. For 2050, the EU has adopted a net zero vision of “climate neutrality,” in
which emissions would be offset by negative emissions (i.e., photosynthesis) in LULUCF as wel as by negative emission technologies.
The European Green Deal
policy, sustainable food, and a circular (waste-minimizing)
The European Green Deal, launched in December 2019 by
economy. Specific legislation to help implement the
the European Commission (the EU’s executive), sets out a
European Green Deal must be approved by the member
multipronged EU approach to climate change and other
states (acting in the Council of the EU) and by the
environmental challenges, while promoting resource-
European Parliament to become EU law, a process that can
efficient economic growth and innovation. A key element is
take two years or more.
a “just and inclusive transition” in which no segments of
EU society are “left behind” economically. Initial plans to
Implications for U.S.-EU Relations
finance the European Green Deal in its entirety called for
The Biden Administration has asserted the importance of
mobilizing at least €1 trillion (about $1.2 trillion) over the
close U.S.-EU cooperation in tackling climate challenges.
next decade from the EU budget and financial institutions,
EU officials have proposed a robust U.S.-EU climate
member states, and private investors. EU plans include
agenda to include addressing, among other issues, carbon
providing financial assistance for areas, industries, and
leakage, implications of climate efforts for the international
workers dependent on carbon-intensive activities and fossil
trading system, sustainable finance, and clean and circular
fuels (for example, in Central Europe and the Baltic states).
technologies. U.S. Special Presidential Envoy for Climate
EU efforts to foster “green” COVID-19 recovery policies
John Kerry met with EU leaders during a March 2021 visit
prompted the investment plan for the overall Just Transition
to Europe and indicated a renewed U.S. commitment to
Mechanism to be increased to €150 billion (roughly $178
partnering with the EU on global climate change mitigation.
billion), including €17.5 billion (around $21 billion) from
U.S. and EU officials reportedly are working to develop a
the EU budget for a Just Transition Fund to support those
shared strategy for the U.N. Climate Change Conference
regions with the most pressing transition challenges.
(COP26) in November 2021 and on coordinating efforts to
urge China to peak its GHG emissions before 2025.
The EU is working on additional climate action initiatives,
including a future carbon border adjustment mechanism—
At the same time, some U.S.-EU tensions on climate issues
such as a border tax—to reduce risks to competitiveness
could emerge. U.S. climate envoy Kerry has cautioned that
and avoid risks of emission shifts to countries with less
a carbon border tax could have “serious” trade implications.
ambitious climate policies . The European Commission has
Evolving U.S.-EU views may differ on sustainable finance
issued a new strategy to “adapt to the unavoidable impacts
standards and regulation. U.S.-EU competition in clean
of climate change and become climate resilient by 2050.” A
energy and technology markets also could become more
proposal to enact into EU law the goal of a climate-neutral
pronounced in the years ahead. Also see CRS In Focus
economy by 2050 also would require member states to
IF11746, United States Rejoins the Paris Agreement on
implement adaptation measures to enhance resilience. The
Climate Change: Options for Congress, by Jane A. Leggett.
EU is considering new strategies on biodiversity, industrial
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
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