Climate and energy: divergent interests and approaches between Australia and the European Union

Abstract

ABSTRACTAustralia and the European Union (EU) have adopted markedly different approaches to climate change mitigation. Whereas Australia is a regarded as a “laggard”, the EU has adopted a position of international leadership. Divergent economic interests, particularly in relation to energy resources, can explain much of this difference. Australia is one of the world’s largest exporters of coal and gas and has sought to protect these industries. The EU is a net energy importer and has sought to diversify its energy production away from fossil fuels. However, areas of possible alignment are emerging and could form the basis of a more cooperative relationship in the future.KEY POINTSAustralia and the EU have demonstrated very different levels of ambition in climate policy, with Australia regarded as a laggard and the EU as a leader.Divergent economic interests, particularly in relation to energy resources, can explain this difference.However, three areas of convergence and possible cooperation are emerging: the energy transition; trade and the international rules-based order; and climate diplomacy.