The European Commission presented "the most ambitious policy ever" to fight climate change on Wednesday, challenging the world to follow Europe's lead in cutting greenhouse gas emissions. The European Union's executive branch proposed the 27-nation bloc reduce emissions by at least 20 percent by 2020 compared to 1990 levels, with the possibility of going to 30 percent if other developed countries join in. The targets are part of new proposals for a broad EU energy policy that aims to boost production of renewable fuels, cut energy consumption, and reduce the dominance of big utility companies over EU gas and electricity markets.

With oil imports hit by the latest dispute involving Russia, the Commission's vision for an EU-wide energy policy also seeks to ease dependence on foreign suppliers and push the bloc to speak with one voice on the world stage. But Brussels made fighting global warming the core of its strategy. "If this was adopted it would be by far the most ambitious policy ever -- not only in Europe but the world -- against climate change," European Commission President Jose Manuel Barroso told a news conference.

The plan needs to be approved by EU governments and the European Parliament. The new goal goes beyond an existing target for an eight percent cut in emissions from 1990 levels in the 2008-2012 period adopted by the 15 members of the EU before its 2004 enlargement, which several countries are struggling to meet.

The EU renewed its calls on the United States -- the world's biggest polluter -- and other major economies to drop their opposition to binding targets for emissions cuts. "We need the United States with us," said Barroso, who met US President George W. Bush this week. "I personally believe the United States will change and they will be much more ambitious in the future when it comes to climate change."

Germany, holder of the bloc's rotating presidency, said the policy showed the EU's leadership on climate change, but Britain reiterated its preference for an EU target of 30 percent. "I think it is ambitious but realistic," said Claude Mandil, executive director of the International Energy Agency in Paris. United Nations officials said the EU move may spur stalled international talks on fighting global warming.

Energy shake-up
Environmentalists said the plan fell short. "Scientific findings show that it simply won't be enough for the EU to only reduce CO2 emissions by 20 percent by 2020 if we want to avoid catastrophic climate change," said Jan Kowalzig, climate campaigner at Friends of the Earth Europe. EU business lobby UNICE protested the target was too high and said European business would suffer if other countries around the world do not agree to cuts.

Energy has been at the heart of the EU since it was born as the European Coal and Steel Community half a century ago but policy remains largely in the hands of national governments. This week's dispute between Russia and Belarus, which has hit oil exports to several EU nations, has highlighted the bloc's vulnerability to foreign producers of fuel.

The Commission's report said plans to shut reactors will make cutting emissions harder and it encouraged countries phasing out nuclear power, such as Germany, to replace it with non-polluting sources. The Commission proposed that renewable energy sources, such as wind, make up 20 percent of the EU's energy mix by 2020, up from a non-binding goal of 12 percent by 2010, which the bloc is likely to miss.

The new plan also says biofuels should account for a minimum of 10 percent of fuel used by vehicles by 2020. On one of the most politically sensitive items, Barroso said Brussels favoured splitting up the generation and distribution businesses of power companies to tackle what his regulators said were "serious competition problems" in the sector. But Germany and France oppose that idea and the Commission offered a second option of utilities handing over management of grid businesses while retaining ownership. That option would mean more intrusive regulation, one EU official said.

: French power giant EDF said full separation of generation and distribution was unnecessary. Germany's E.ON and RWE also rejected the proposals. French Industry Minister Francois Loos, referring to the ownership proposals, said "there are subjects on which we will make ourselves heard by the Commission."
(Por Jeff Mason, William Schomberg, Stuart Penson, Muriel Boselli, Ingrid Melander, Darren Ennis, Markus Wacket, Mantik Kusjanto, Mark John, William Emmanuel, Swaha Pattanaik, Alister Doyle, Daniel Fineren, Planet Ark, 11/01/2007)