The European Union (EU) is the world’s third largest greenhouse gas (GHG) emitter after the United States and China, accounting for 13 percent of global emissions in 2005. Since 1990, EU emissions have declined about 10.7 percent as a result of structural changes, such as Germany’s reunification and the substitution of natural gas for coal in the United Kingdom, and new policies at both the EU and member state level. Reductions have occurred across most sectors of the EU economy, although in the transportation sector, emissions have increased significantly.