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The two-week long climate change summit held in Cancun, Mexico in December 2010 witnessed a weak and dismal performance by the European Union. While what was expected was a credible leadership role from the EU to achieve a crucial breakthrough in climate talks, what came out was empty rhetoric and shallow proposals.

In the summit, the EU members were sharply divided over boosting its 2020 carbon emissions targets from 20 per cent to 30 per cent below 1990 levels. Regarding climate financing, the union declared that it had mobilized 2.2 billion Euros from the EU's 7.2-billion-euro pledge of 'fast-start' financing by 2012. However, half of the EU's funding would involve loans instead of grants to the poor. The aid also focuses a lot on curbing greenhouse-gas emissions.

In addition, talks regarding the formation of a "green fund" to channel climate aid pledges from rich countries were also held up. Furthermore, no concrete steps were taken to address the twin issues of technology transfer and climate adaptation. Analyzing this performance, it seems that the EU is losing its grip on the climate change issue that once it actively promoted in its main strategic domain. Contrary to expectations, it has failed to provide a holistic solution to the issue.

Having said this, it would also be unfair to question the European Union's sincerity in the climate negotiations. In the past, the EU has shown directional leadership in formulating and implementing the Kyoto Protocol, when the US finally refused to sign it. Since then, it has proclaimed undisputed leadership on the issue. This was evident in the steps it took to address the issue, through its European Union Climate Change Program (ECCP), Emission trading Scheme (ETS) and individual targets to cut carbon emissions, thereby setting itself up as a role model for others. The EU sees climate change as an issue global public good of political significance both internally as well as externally.

But now when a post-Kyoto climate regime is urgently needed, the EU is nowhere up to the mark. It is certain that effectively tackling this issue requires the Union's instrumental leadership. But for that, the union has to work steadily toward implementing its own committed emission reductions so that other countries can follow suit. Moreover, as climate change is an issue which cuts across wide policy areas, it must be integrated with other relevant fields including energy, transport, agriculture and industries. Ensuring coherence across these policy sectors requires, at the very least, that climate objectives be taken into account in the formulation and implementation of these sector policies. This is important because the Union's external leadership depends on the success of its internal applications. Once it can address this issue at domestic level in a united manner, it can then gain acceptability to act as a leader externally.

In furtherance of its leadership agenda in the international arena, there is potential for including climate change within the domain of "greater" foreign policy. In fact, climate change should be given precedence over other policy objectives in view of its global implications. Greater emphasis should be put on helping developing countries with regard to issues of technology transfer, mitigation and adaptation for which the EU must be willing to provide generous aid and grants. This would encourage them to comply with the norms set up by the EU. Another important achievement would be to make the US sign the new protocol by putting more emphasis on the sustainable growth of its own economy.

Although the present situation isn't influenced much by the EU, the Union is still the most eligible global actor to address this issue given its role in climate policy and the wide array of tools and mechanisms at its disposal. The Lisbon Treaty, which came into force in 2009, further enables the Union to strengthen its institutions, values and legal framework to address issues of global importance like climate change.

There is great urgency to form a new post-2012 climate protocol to replace the existing one. For nations willing to adopt a flexible stance on climate agenda, the time is ripe for the EU to seize the opportunity to emerge as a powerful leader on the global platform.

Vijeta Rattani is a Doctoral Research Scholar at the Centre for European Studies, Jawaharlal Nehru University, New Delhi.

Read related articles from atlantic-community.org members:

• Atlantic Memo: Transatlantic Leadership by Example: Toward Inclusive Climate Change Policy

• Jean Pierre Schaeken Willemaers: Playing Politics with Climate Change