Europe’s exports leave a hefty carbon footprint

Europe may be seen to be leading the debate on clean energy, but its exports are potentially more damaging to the environment than those of the US and China, according to a forthcoming study by Brussels-based think-tank Bruegel.

This year the EU set ambitious targets on energy efficiency, pledging to cut overall levels of greenhouse gas emissions by 20% by 2020. Looking at the range of carbon-intensive products Europe ships out to the rest of the world, these potentially punitive policies are entirely warranted.

"Europe has a very diversified export basket, including not only hi-tech goods, but also heavy industrial products...from a policy perspective, Europe should be much more aggressive with its carbon-free energy and energy efficiency policies," says Juan Delgado, a research fellow at Brussels-based think-tank Bruegel.

"The US is mainly specialised in research-intensive goods and services. China is specialised in labour-intensive goods, such as textiles and hi-tech goods, with low-carbon intensity," says Delgado.

Europe’s export mix lags behind in terms of its energy efficiency even though manufacturing and energy-generation processes are on the whole dirtier in China and the US.

Clearly, the EU will need a change of economic focus if it is to become truly energy efficient. Delgado is doubtful that the development of green technologies for export, such as solar panels produced in Germany, is a viable solution.

"This wouldn’t amount to a big part of exports. That is the argument the European Commission has used to sell targets, [that] we will become leaders at world level in such technologies. This is the argument used by some countries to sell technologies," he says.

Carbon intensity (by industry)

• HIGH

Energy; metallic and non-metallic mineral products; refinery

• MEDIUM

Chemicals; agriculture and fishing; transport and communications; pulp and paper

• LOW

Services; food; machinery and equipment; textiles; rubber and plastics

Source: Bruegel, 2007

Europe may be seen to be leading the debate on clean energy, but its exports are potentially more damaging to the environment than those of the US and China, according to a forthcoming study by Brussels-based think-tank Bruegel.