The EU has made significant progress in its mission to lower domestic greenhouse gas (GHG) emissions by setting ambitious goals and binding targets through legislation such as the Fit for 55 package, which aims for a 55% reduction in emissions by 2030. Furthermore, on 6 February, the EU published a 2040 climate target, calling for a 90% net GHG reduction compared to 1990 levels.

To remain a leader in effective climate policy, the EU must also tackle emissions produced beyond its borders, which result from the EU’s demand for imported goods. To more effectively integrate these consumption-based emissions into European policy, SEI and the Institute for European Environmental Policy (IEEP) organized a roundtable. The event, hosted by Pär Holmgren MEP (Sweden, Greens/European Free Alliance) and Sara Matthieu MEP (Belgium, Greens/European Free Alliance) aimed to highlight opportunities for action.

Despite decreasing domestic emissions, the EU’s consumption footprint shows no signs of shifting

Since the 1990’s, global GHG emissions have surged by 63%, while the EU’s domestic emissions have fallen by 29%. This, however, only paints part of the picture: the EU imports more emissions than it exports, pointing to a significant environmental impact tied to its demand for imported goods and services. This situation results in the EU generating larger negative spillover effects compared with other global regions. (12:31)

Despite reductions at home, the EU’s consumption-based emissions are slightly increasing, underscoring the need for a deeper examination of its consumption patterns and the adoption of more sustainable practices worldwide.

These unsustainable consumption patterns permeate the EU economy, as demonstrated by the textile and gas extraction sectors, which are among the most impactful in terms of GHG emissions.

Beyond the impact on climate, it is crucial for the EU to shift its consumption patterns as they currently contribute to the transgression of other planetary boundaries. Levels of particulate matter, freshwater use and fossil fuel use are all in the high-risk area. Meanwhile, use of minerals and metals falls within the uncertainty area, suggesting that their impact is less clear and may also warrant concern. (39:28)

Two main forces are shaping the EU’s consumption patterns, each pulling in opposite directions. On one side is the increasing demand for imported goods, primarily driven by the growing population and affluence of EU member states; wealthier countries tend to consume more. On the other side, efforts to reduce emissions within the EU are making headway, thanks to improvements in production efficiency. This means that resources are being used more sustainably, and pollution is decreasing. However, these positive changes have yet to offset the rising demand, resulting in an increasing consumption footprint overall. (52:58)

There are several strategies the EU and its Member States can adopt to tackle consumption-based emissions:

• Monitoring consumption trends and their environmental impact
• Targeting specific mitigation goals to set a clear ambition and provide certainty to governments at all levels and businesses
• Identifying consumption hotspots to help tailor policy responses
• Testing green transition scenarios, taking lifestyle and behavioural change into account
• Reducing demand with more durable products and circular business models
• Shifting to less material intensive options
• Improving resource efficiency and eco-design

(42:52; 56:00)

Efforts are underway across various EU bodies to explore these solution pathways. For instance, Eurostat, European Environment Agency and Joint Research Centre have taken steps to identify and monitor consumption, material, carbon and land footprints (29:07), and legislative measures have been adopted under the European Green Deal. (20:35) What remains is to pinpoint policies and measures that can comprehensively address consumption by reducing demand while simultaneously enhancing well-being and facilitating a just transition.

There are several promising developments in EU policy designed to curb emissions linked to certain types of consumption. Notably, the Carbon Border Adjustment Mechanism (CBAM), encourages greener production outside EU borders by imposing a cost on imports of specific industrial goods from countries that do not price carbon emissions  similarly. The Ecodesign for Sustainable Products Regulation (ESPR) is another important piece of legislation that helps reduce the climate impact by ensuring that products are made sustainably and last longer. Other regulations like the Deforestation Regulation, Revised Regulation on conflict minerals, Regulation on prohibiting products made with forced labour on the Union market and the Directive on corporate sustainability due diligence also aim to mitigate the negative effects of EU consumption outside its borders. (25:49)

While the EU’s 8^th Environment Action Programme aims to reduce material and consumption footprints, there is still a need for clear, binding consumption targets and measures to shift consumption patterns and ensure social justice in the process of reducing emissions. (01:22:40; 01:53:30)

Despite some Member States’ explicit references in legislation to prevent “exporting” environmental harm to third countries, over half (53%) of environmental impacts from EU consumption still occur outside its borders.

As part of our project, Prioritizing consumption-based emissions in EU’s policy agenda, we are conducting case studies in Denmark, France and Sweden to better understand this issue. For instance,  Denmark (01:05:05) sees about half of its consumption-based emissions originating from abroad, despite the Danish Climate Act principle to ensure that measures to decrease territorial emissions do not simply move them outside the country’s borders. France (01:15:16) has reduced its domestic emission by a third (33%) since 1995, yet its imported emissions have risen by almost the same rate (32%). In Sweden (57:35), close to 60 percent of consumption-based emissions are from abroad,  despite its 1999 Generational Goal to avoid causing environmental and health issues in other countries. Interestingly, many Swedish municipalities already have set their own consumption-based targets, showing that local initiatives can drive progress, which could be bolstered by national support.

We will continue to explore experiences from these countries, and a full report including chapters on these case studies will be published in May.

The path to a sustainable future hinges on continued global collaboration and commitment from both the EU and its Member States. At present, the world is on course to exceed the 1.5 °C global warming threshold set in the Paris Agreement. The EU’s ambitious targets for reducing territorial emissions by 2030 and 2040 can play a critical role, particularly if the EU also assumes responsibility for emissions associated with the consumption of imported goods, which could also promote more sustainable practices beyond its own borders. The EU has a unique chance to emerge as a global leader in climate action. By implementing stricter measures to address consumption-based emissions, the EU can not only reaffirm its commitment to achieving climate goals, but also serve as a model for others to follow.