This article explains the relatively successful performance of the European Union (EU) in climate and energy governance by two factors: (1) multi‐level reinforcement and (2) the mobilization of economic interests at different levels of governance through low‐carbon industrial policy. The article adds to the literature by further developing existing arguments on multi‐level reinforcement in climate and energy policy. We stress the point that economic co‐benefits of climate protection have been successfully mobilized at all levels of governance, including the sub‐national level, in recent times. This is illustrated by examples from pioneer countries as well as laggards and waverers in terms of national climate and energy policy. While it is far from certain whether the EU will indeed deliver the needed CO2 reductions to reach its internationally agreed targets, this paper, nevertheless, highlights why the EU system of climate governance remains relatively robust in light of the various challenges it currently faces. © 2017 The Authors. Environmental Policy and Governance published by ERP Environment and John Wiley & Sons Ltd