Europe outpaces US in energy efficiency

Across Europe, countries are experimenting with policies to encourage homeowners, renters and landlords to make buildings more energy-efficient. They've been prodded by the European Union, which as part of its effort to fight climate change has set an ambitious goal to cut energy consumption in buildings 11% by 2020.

In the U.S., some companies such as Citigroup Inc. and a handful of states such as California have launched efforts to improve energy efficiency in buildings. But in general, the U.S. has been slower to devise policies to address the problem. The EU, meanwhile, has mandated that member states renew their building codes every five years and create standards to calculate the energy efficiency of buildings.

Another measure calls for all buildings to submit a report card, or "energy certificate," which can be shown to prospective buyers or renters. The hope is that grading buildings on their energy efficiency will spur landlords and owners to undertake renovations.

A European Climate Plan

THE EUROPEAN Union announced a new plan last week to combat global warming that would set firm caps on emissions by 27 countries. The initiative might be seen as widening the gap on climate change between Europe and the United States, given the Bush administration's refusal to consider such binding measures. But that's premature: In fact, the proposal in many ways mirrors initiatives under discussion in Congress and could be the beginning of a harmonization of climate change policy between Brussels and Washington.

Between 2013 and 2020, the E.U. plan would reduce greenhouse gas emissions to 20 percent below 1990 levels. Gone are the national action plans that saw countries adopt schemes that protected local industries. Instead, the European Union would set individual national caps to meet the overall goal. The reduction would be bumped up to 30 percent if the United States and China signed binding climate change agreements.