Providing a timely overview and assessment of the evolution of the new European climate policies, this informed discussion systematically evaluates both internal policies and their external divers and implications. Focusing on the new climate and energy package, important questions are explored such as Are EU climate policies sufficient to meet the environmental, economic, and political challenge posed by global climate change? How do international and domestic climate policies of the EU interact and are they mutually supportive? What are the prospects for the EU keeping its international leadership in the face of a more engaged U.S. and increasingly assertive emerging economies? This essential analysis aims to enhance understanding and contribute to discussions on the current and potential role of the EU in the fight against climate change.