New data confirms US and EU carbon emissions fell last year

New figures have revealed that carbon emissions across the EU and US fell last year as a combination of high energy prices and the onset of global recession combined to drive down demand for energy.

According to new preliminary estimates from the US government's Energy Information Administration (EIA), energy-related carbon emissions fell by 2.8 per cent last year to 5,802 million tonnes, while emissions from petroleum fell six per cent. Carbon emissions from natural gas were also down 13 million tonnes or one per cent, while coal emissions fell 1.1 per cent or 23 million tonnes.

The EIA said the decline in emissions was largely the result of declining GDP towards the end of the year and record energy and oil prices during the first half of the year.

However, while energy-related carbon emissions fell 2.8 per cent, energy use fell just 2.2 per cent year on year, suggesting that the expansion of US renewable energy capacity could be beginning to affect carbon emissions levels.

The new figures come just days after the European Commission similarly confirmed that emissions from heavy-emitting facilities covered by the EU emissions trading scheme (ETS) fell three per cent in 2008 to 2.118 billion tonnes of CO2-equivalent.

The reduction was partly attributed to the onset of recession in the autumn and the resulting fall in industrial activity. But environment commissioner Stavros Dimas said there were also signs that the consistently high carbon price of between €20 (£17.50) and €30 throughout the first half of the year had also prompted firms to cut emissions through investments in energy efficiency and switching from using coal to gas.

"The three per cent reduction was partly due to businesses taking measures to cut their emissions in response to the strong carbon price that prevailed until the economic downturn started," he said. "It confirms that the EU has a well-functioning trading system, with a robust cap, a clear price signal and a liquid market, which is helping us to cut emissions cost-effectively."

He added that the success of the scheme should encourage other countries, such as the US, Australia and Japan, in their efforts to "set up comparable domestic cap-and-trade systems, which we would like to see linked up with the EU ETS to create a stronger international carbon market".