It doesn't seem so long ago that the EU was proudly pronouncing its leadership in global efforts to tackle climate change. A year ago, in Bali, the EU was to the fore in securing the agreement of a roadmap for UNFCCC negotiations on a global climate agreement to succeed the Kyoto protocol.

However, with EU governments lining up to shred large chunks of its 'climate package' of legislation, the credibility of this claim to leadership is in tatters. EU climate policy is being privately criticised at the UNFCCC talks and the EU has already secured one dubious award from NGOs for being 'fossil of the day'.

How badly is the EU climate package unravelling?

At the start of this week, the European Council and Parliament reached agreement on new rules to limit CO2 emissions from cars...or rather reached agreement to postpone them. The result would mean the cars on the market in 4 years will be no more fuel efficient (or less climate damaging) than the present, while deeper long term improvements are also jeopardised. See the Greens reaction and a more detailed analysis.

EU legislation to limit greenhouse gas emissions from industry and other sectors is also being picked apart.

The EU's proposed emissions trading scheme (which aims to achieve emissions reductions from the power and heavy industry from 2013) risks made into a profit generating tool for polluting industries. Not only are EU governments proposing to give a large chunk of industries their emissions permits for free, they are also proposing to outsource emissions reductions, so only half the reduction target would be delivered in the EU. See the Greens reaction and a more detailed analysis.

Legislation on emissions reductions from other sectors is equally under pressure. EU governments want to outsource over 70% of the reductions - meaning that member states will buy credits from projects in third countries to offset reductions they should be making at home. This would leave EU climate policy falling far short of the necessary (domestic) emissions reductions outlined by the UN IPCC. See a more detailed analysis.

The only potential silver lining is a law setting out how 20% of EU energy should come from renewable sources. Italy is the main country standing in the way but much of the details have now been agreed. See the Greens reaction and a more detailed analysis.

Worse may be to come, as much of the controversial political issues may be left to heads of state and government at next week's EU summit (11-12 December) to decide. Some countries are already sharpening their knives to further shred the proposals. With the business end of the UN climate talks also taking place late next week, the timing of this climate policy meltdown could not be worse.