In-House Counsel

EU and US Rapprochement on Climate Change

I have just returned from Washington D.C., and it is refreshing to see an era of closer cooperation between the U.S. and Europe, not to mention the rest of the world, on climate change. As the U.S. delayed meaningful action on climate change for the past 15 years, the EU has set an ambitious target to reduce member states’ CO2 emissions by 20% from 1990 levels by 2020 – the so-called 20/20/20 initiative. The EU also created the European Trading System (ETS), the world’s first platform for trading of carbon credits.

By placing climate change high on his domestic and foreign policy agendas, President Obama has changed the dynamics of climate discussions with the EU and in global climate negotiations, generally. His administration is fully re-engaged in UN negotiations and, along with Congress, is moving forward with domestic cap-and-trade legislation. Domestic legislation would impose mandatory caps on U.S. greenhouse gas emissions and set a target to cut emissions by 17% by 2020 and 83% by 2050 compared to 1990 levels. The recent economic stimulus package includes $15bn for alternative energy development, more fuel efficient cars and a “smart grid” to bring them together.

The US and European are taking different approaches to solving global warming. While the Obama Administration presents reducing greenhouse gas emissions in terms of opportunities through the power of technology and the creation of a green economy, the EU is mainly focused on shorter-term opportunities to conserve, reining in electricity consumption and using less fuel by driving less and using more fuel-efficient, smaller cars, etc.

There is, however, a convergence of EU and U.S. long-term goals on climate change, and this is good news.

Full post as published by Cisco High Tech Policy Blog on July 21, 2009 (boomark / email).