Earlier this month, Ted Nordhaus posted “The ‘Serious Business’ of Kyoto: EU to ‘overshoot’ its emissions reductions targets? Read between the lines.” His analysis rightly takes the EU to task for overselling its GHG-emissions-reduction activities, in the hope that the U.S. will buy what they’re selling and leap aboard the sinking ship of carbon cap-and-trade. Nordhaus reveals that the EU’s claims to leadership and projected success on the GHG-reduction front are based on assumptions that will likely prove embarrassing in hindsight.

The December 2007 report to which he refers, incorporating emissions through 2005, is risible for its spin. The authors somehow lowered their projection of future emissions from the year before, after emissions turned upward, and strongly, in 2006 (because of a good economic year). The European Environment Agency (EEA) won’t officially report the 2006 spike until June 2008, so for a few more months, this whopper of a lie has as shelf life.

The EU isn’t a straight shooter on the environment — but some Americans work quite hard to ignore this. Nordhaus’s post is useful, because he realizes the EU’s reporting is all smoke and mirrors, and it seems that the only way to get that fact to register publicly with greens and policymakers (to the extent they don’t already know it privately) is for the case to be made by realistic eco-progressives lke Nordhaus.

There is even more smoke and mirrors than Nordhaus indicates, though. He focuses on the EU’s projected “reduction” by 2012 of 11 percent below 1990 GHG emission levels, and describes it as oversold for two reasons: 1) the political decisions unrelated to Kyoto: the UK’s “dash for gas” and the shuttering of East German industry after reunification accounts for most of the promised “reduction,” and 2) the cocktail of implausible overperformance by states, policies, and Kyoto programs. Nordhaus gets the gist of Europe’s fudging, paper shuffling, and exaggerated optimism, but his focus on the EU’s projection is to the apparent exclusion of looking at actual performance.

Any analysis of GHG-reduction performance to date tells us that EU emissions will be nowhere presumed levels. Nordhaus grants the projection more credit than it deserves under any reasonable scrutiny of the EEA’s own muddied presentation of the facts. The EU says that if it just coasted from today, its existing measures “will” yield an average reduction over 2008-12 of 4 percent below 1990 — but that “will” depends on a host of implausible “ifs.” That 4 percent reduction is patent nonsense, given the EU’s admitted (if, again, not advertised) emissions increases in two out of every three years since Kyoto was agreed in 1997 — which has left them, as of a year ago, at or about their 1990 emission levels, with those emissions rising.

It is true that the report to which Nordhaus refers claims that emissions as of 2005 were 2 percent below 1990 levels. As I have previously demonstrated, that figure is the product of serially changing their 1990 baseline years after the fact. The larger subterfuge will be revealed as false when 2006 figures are finally released by Brussels, barring more funny business with their numbers. Nordhaus is far too indulgent of the EU’s spin. The fact is: emissions aren’t down, economy-wide or among ETS-covered sectors.

Since policies inspired by Kyoto began accumulating in Europe, emissions are rising steadily. The ETS did not change this, to much embarrassment. Environment Commissioner Stavros Dimas even admitted that he could identify no emissions reduction for which the ETS could claim credit. Had Nordhaus looked at how the EU’s promises compare to performance, he would have seen the so-called reduction that he accepts arguendo is actually no such thing, with CO2 emissions at about 5 percent over 1990 levels through 2006 (this will be updated and formalized by EEA in June, but sufficient member-state data is available to support this assessment). To take just one isolated example: the UK’s claimed reduction to date of 12 percent below 1990 levels was off by, oh, about 12 percent.

The EEA assume that this, like every year in the decade preceding it, is the year when they will wrench their trajectory from upward-ticking to a starkly downward one. For a decade they have proven wildly unreliable. There is no reason in the record to believe that the claims in the report Nordhaus reviewed are any different. Their projected reduction is far more implausible than Nordhaus lets on. In short, this analysis isn’t factually wrong, but with the appropriate context could be more right.