Video: US-China climate deal a great opportunity for Europe

A common sound bite in the European Parliament goes, “If the US and China aren’t doing anything to curb carbon dioxide emissions, why should Europe?”

It might be time to pack it away. A climate agreement between the world’s biggest greenhouse-gas emitters, the US and China, was announced last week.

It is a great opportunity for Europe, where the green tech industry is taking great strides, believes Jeppe Kofod, a Danish member of the European Parliament. 

“We have lots of energy technologies that can be applied in China and the US,” said Kofod. “It’s good news because it’s more of a level playing field, but also an opportunity to expand an industry and create lots of new jobs.”

This presents a historic sales opportunity, he said, but one that will inevitably invite increased trade competition. Does Europe have enough clout to take on China? “We shouldn’t underestimate China, they’ll put a lot of money into R&D,” Kofod said. “But we should remain ahead of them.”

The US and China together account for some 45 percent of the globe’s total CO2 emissions. In the joint agreement they pledge to make significant efforts in the next 10 to 15 years to limit emissions.

The US has agreed to cut its emissions by 26-28 per cent of 2005 levels by 2025, a doubling of the pace of its reductions currently. China committed to its CO2 emissions peaking no later than 2030 in the first public announcement of this kind made by the government.

Like the 2030 targets agreed by EU states, the US-China agreement gives both sides a degree of wiggle room, referring to the countries’ “best efforts” and intentions to reach their targets.

Signal to investors

Kofod, who served as a politician in Copenhagen before being elected to Brussels in May, was pleased with the EU 2030 climate package agreed in October but, like many of his colleagues in the centre-left Socialists and Democrats bloc in the Parliament, felt it didn’t go far enough. “It’s still an important signal to investors in the energy sector,” he said.

His main priority on the Industry, Research and Energy (ITRE) committee is talking up the “Energy Union”, which promotes better co-ordination of energy policy in the 28 member bloc. The crisis in Ukraine means, “We have a momentum right now,” said Kofod.

Energy Union is a hard sell – how do you find coherent policy between states who want out of nuclear and those who do not for instance? Kofod is not advocating a narrow, prescriptive energy menu. “There should be room for differences,” he said. “And [states should be allowed follow] a diversity of energy sources.”

“We don’t have much fossil fuel in Europe, so we need to develop energy efficiency and new types of energy forms,” he added.

Paris climate conference

When the Paris climate conference comes around late next year, Kofod will be raising his voice along with those looking to break the current geopolitical gridlock.

He feels the negotiating position is shifting in a positive direction. “The three biggest economies in the world have set targets. This will lay the ground for Paris next year,” Kofod said. However, the often dysfunctional political system in the US means a binding result remains far from certain, he conceded.

US-China joint announcement here
Paris climate conference info here
EU 2030 climate and energy package here