Challenges faced by the EU’s energy policy on CO2 emissions from 1997-2017, including bilateral trade between the EU and the US

Purpose of research: The European Union has three main objectives in its energy policy. The most crucial one is due by 2020, to reduce greenhouse gas emissions (mainly CO2) by at least 20% below 1990 levels. This research attempts to calculate Actual-Open CO2 emission in the EU countries for the years 1997-2017, including in the calculation export and import of CO2 in products and services from the USA. Design/methodology/approach: This study takes into account the USA and 27 European countries (all the EU members without Malta). Actual-Open CO2 emissions were obtained by applying the appropriate Actual Emission Factor. The calculation takes into consideration the transfer of CO2 in exported products and services from the USA to the EU and vice versa. Findings: It has become apparent, that Actual-Open CO2 emission statistics in the EU member states are different from the Official-Closed CO2 emission data. This has raised several challenges: 1) A change should be considered in the approach to the reduction of CO2 emission in the EU energy policy, to take into account CO2 emission balance with other countries. 2) To implement this, the EU needs an instrument that would lead other countries to look at their CO2 emissions in a similar manner to the EU. 3) EU member states should redefine their approach to the import of goods from countries with a lower production cost due to their less stringent approach to environmental problems. Originality/value: The survey presents actual CO2 emission values in the EU countries incorporating net gain/loss from the US imports/exports.