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Perspective

Consumption-based emissions: a new frontier for EU climate policy

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Perspective

Consumption-based emissions: a new frontier for EU climate policy

In an era where the world is facing increasing climate challenges, addressing the environmental impact of consumption habits among EU citizens is key, as consumer choices have far-reaching consequences for the health of our planet. The need for transformative action has never been more critical.

Ng’endo Machua-Muniu, Katarina Axelsson, Timothy Suljada / Published on 20 December 2023

Consumers in the EU get their products from around the world, but the EU has yet to fully recognize the associated climate impacts in its policies. Doing so will make a difference for cutting global greenhouse gas emissions.

The EU has been a leader in recognizing and tackling the environmental consequences of production emissions within its boundaries. The region has set legally binding targets and strategies to reduce its own greenhouse gas emissions. In addition to its 2050 climate neutrality goal, the EU has set a mid-term 2030 mitigation goal and backed this up with legislation in the “Fit for 55” package, which is close to fully implemented.

However, one piece of the puzzle is missing: emissions generated beyond the EU’s borders, stemming from the demand for consumer goods and services from EU citizens.

Estimates show that nearly a third of the carbon dioxide emissions from EU consumption occur outside the region’s borders, according to Eurostat. To holistically address the climate crisis, we must begin to analyse the full impacts of our consumption – at home and abroad – and examine the greenhouse gas emissions generated along the entire supply chain of the goods and services that we consume, regardless of where in the world they are produced – or consumed.

The Stockholm Environment Institute (SEI) recently launched a project, “Opportunities to bring consumption-based emissions into the EU policy agenda”, that aims to advance the understanding of how consumption-based emissions in the EU’s policy agenda can be effectively prioritized. By providing evidence for policy development during the upcoming European Commission mandate period and new European Parliament session, the project aims to advance understanding of the opportunities and challenges for the EU to establish consumption-based emissions targets, strategies and measures.

By bringing consumption-based emissions to the forefront, the EU will be taking a positive step toward adopting a comprehensive approach to climate action—one that recognizes the interconnectedness of our actions and fosters collaboration, innovation and global responsibility.

Opportunities at home and abroad

Several opportunities are upcoming for the EU to prioritize consumption-based emissions in its policy agenda.

The eighth Environmental Action Plan cites reducing material and consumption footprints among the enabling conditions to reach the objective that by 2050, “people live well, within the planetary boundaries in a well-being economy where nothing is wasted, growth is regenerative, climate neutrality in the Union has been achieved and inequalities have been significantly reduced”.

The footprints of a number of imported products, such as cement, aluminium and fertilizers, are already being regulated with the recently introduced Carbon Border Adjustment Mechanism (CBAM) and the Deforestation Regulation. A provisional agreement was also reached on 5 December, on the EcoDesign for Sustainable Products Regulation, which places requirements on the carbon and environmental footprints of products placed on the EU market.

As these measures are implemented, member states and the EU should be in a good position to further address consumption-based emissions and contribute to global climate action.

Refocusing on the broader picture

Yet greenhouse gas reduction targets for the EU remain focused on emissions produced within the EU. While critical for the EU to contribute to global emissions reductions, it is not sufficient. The complete picture of Europe’s contribution to global emissions also includes the embodied emissions in products Europeans consume. As European citizens go to the polls for the European Parliamentary elections next June, they should consider how their governments can address climate change and greenhouse gas emissions from household consumption.

It is incumbent on the EU and its member states to assess and address the EU’s full emissions profile, by not only addressing the emissions generated within the EU but also the emissions embodied in European consumption patterns and often imported into the EU, regardless of where in the world these occur. By prioritizing targets and measures to reduce consumption-based emissions, the EU can demonstrate its commitment to climate action and send a clear signal that it is serious about achieving its climate goals and contributing to global emissions.

SEI authors

Ng’endo Machua-Muniu
Ng’endo Machua-Muniu

Engagement and Impact Officer

Communications

SEI Africa

Katarina Axelsson
Katarina Axelsson

Senior Policy Fellow

SEI Headquarters

Timothy Suljada high res
Timothy Suljada

Head of Division: Resources, Rights and Development

SEI Headquarters

Read more about the project

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