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Abstract

In the last three decades, the EU has been a clear front-runner in the fight against climate change. Structural changes in the European economy combined with policies for supporting renewables and energy efficiency have resulted in a decoupling of economic growth from emissions, with EU-28 GHG emissions declining by 24% over 1990-2019, while GDP increased by about 60%. The greatest progress has so far been achieved in the sectors covered by the EU Emission Trading System (EU ETS), in particular electricity production and heavy industry, while emissions are still increasing in the transport sector. The EU has a good track record of achieving its domestic and international climate and energy pledges. However, current efforts need to be greatly accelerated to achieve climate neutrality by mid-century and the new 55% reduction by 2030, as required by the EU’s own ‘Green Deal’ policy, and the Paris Agreement.