Kristin Archick, Jane A. Leggett and Kezee Procita are the authors of this CRS two-pager released on 6 April 2021: 'EU Climate Action and Implications for the United States'.
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Download CRS_InFocus_Report_EU_Climate_Actions_Implicartions_USA_6April2021
The European Union: A Key Actor
The European Union (EU) has sought to play a leading role on international climate action for decades. It worked closely with the United States to negotiate the 2015 Paris Agreement (PA) to combat greenhouse gas (GHG)-induced climate change. The 27-member EU and the United Kingdom (UK)—which exited the EU in January 2020—have welcomed President Joe Biden’s decision to rejoin the PA (reversing the U.S. withdrawal carried out by the former Trump Administration). Biden Administration climate positions are expected to align with EU views in many respects. The 117th Congress may compare EU climate action policies with Biden Administration plans and may assess prospects for and challenges to U.S.-EU cooperation on climate change and mitigation efforts in the years ahead. (Table 1 compares selected U.S. and EU GHG emissions indicators.)
EU Climate Policies and Challenges
The EU designates environmental policy—including climate action—as an area of shared competency in which both the EU and its member states may adopt legally binding acts. All EU members must abide by agreed EU laws and regulations on climate action, and national laws or policies must not conflict with or undercut common EU measures. European public demands for stronger climate action are growing, as seen by results from recent European elections (including those in 2019 for the European Parliament, the EU’s only directly elected institution). The EU has set a goal of a climate-neutral economy (no net GHG emissions) by 2050 and has pledged to put “green” policies at the center of its Coronavirus Disease 2019 (COVID-19) economic recovery plans. Of the EU’s €1.85 trillion (about $2.2 trillion) pandemic recovery and 2021- 2027 budget package, 30% of total expenditure is to be devoted to climate objectives.
EU Climate Policies and Challenges
The EU designates environmental policy—including climate action—as an area of shared competency in which both the EU and its member states may adopt legally binding acts. All EU members must abide by agreed EU laws and regulations on climate action, and national laws or policies must not conflict with or undercut common EU measures. European public demands for stronger climate action are growing, as seen by results from recent European elections (including those in 2019 for the European Parliament, the EU’s only directly elected institution). The EU has set a goal of a climate-neutral economy (no net GHG emissions) by 2050 and has pledged to put “green” policies at the center of its Coronavirus Disease 2019 (COVID-19) economic recovery plans. Of the EU’s €1.85 trillion (about $2.2 trillion) pandemic recovery and 2021-2027 budget package, 30% of total expenditure is to be devoted to climate objectives.
Cutting to the chase...
Implications for U.S.-EU Relations
The Biden Administration has asserted the importance of close U.S.-EU cooperation in tackling climate challenges. EU officials have proposed a robust U.S.-EU climate agenda to include addressing, among other issues, carbon leakage, implications of climate efforts for the international trading system, sustainable finance, and clean and circular technologies. U.S. Special Presidential Envoy for Climate John Kerry met with EU leaders during a March 2021 visit to Europe and indicated a renewed U.S. commitment to partnering with the EU on global climate change mitigation. U.S. and EU officials reportedly are working to develop a shared strategy for the U.N. Climate Change Conference (COP26) in November 2021 and on coordinating efforts to urge China to peak its GHG emissions before 2025.At the same time, some U.S.-EU tensions on climate issues could emerge. U.S. climate envoy Kerry has cautioned that a carbon border tax could have “serious” trade implications. Evolving U.S.-EU views may differ on sustainable finance standards and regulation. U.S.-EU competition in clean energy and technology markets also could become more pronounced in the years ahead. Also see CRS In Focus IF11746, United States Rejoins the Paris Agreement on Climate Change: Options for Congress, by Jane A. Leggett.
Download CRS_InFocus_Report_US_Rejoins_Paris Agreement 25Feb2021
From the publication:
Potential Options for Congress
U.S. participation in the PA raises a number of options that Congress may consider, including consultation with the Department of State and/or the White House regarding new U.S. pledges under the UNFCCC and PA, and fulfilling currently unmet commitments on reporting and finance;
oversight of Administration uses of existing statutory authorities to meet U.S. pledges, and whether there may be benefits in a more comprehensive legislated strategy, to address efficiency and distributional impacts;
provision of public funds, or incentives for private financing, to assist low-income countries or particularly impacted populations; and/or
requests for assessments from the Administration of the ambitions, relative levels of effort, and performance of other Parties’ GHG mitigation, adaptation, technology, and financing associated with the PA.
See also CRS Report R44609, Climate Change: Frequently Asked Questions About the 2015 Paris Agreement, by Jane A. Leggett and Richard K. Lattanzio; CRS In Focus IF10397, International Climate Change Assistance: Budget Authority, FY2009-FY2019, by Richard K. Lattanzio.
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