BRUSSELS - The European Union's executive adopted landmark proposals on Wednesday that will make the 27-nation bloc a world leader in the fight against climate change, but tradeoffs will include higher energy bills.
The European Commission approved detailed plans to cut planet-warming greenhouse gas emissions by one-fifth and split among EU states a target to produce one-fifth of all power from renewable sources like the wind and sun by 2020.
Commission President Jose Manuel Barroso called the fiercely contested package "the right policy framework for transformation to an environment-friendly European economy and to continue to lead the international action to protect our planet".
The Commission aims to spur talks among industrialised countries for a global climate deal by 2009 to help arrest global warming which risks raising sea levels and causing more floods and droughts.
Environmentalists say the cuts are too small to arrest global warning or give a strong lead to the world.
Brussels fine-tuned its plans at the last minute to placate anxious industry leaders, who fear higher energy costs will tilt competitiveness further in favour of China and India, which have no emissions limits, at a time of record oil prices.
EU Enterprise Commissioner Guenter Verheugen, standard-bearer of the interests of heavy industry, told German television: "I am all for setting an example for the rest of the world. But I am against committing economic suicide."
But the key features remained in place, including a major overhaul of the EU's flagship Emissions Trading System to cover more greenhouse gases beyond carbon dioxide (CO2) and involve all major industrial emitters.
SPECIAL PROTECTION
The Commission's plans will implement renewable energy and emissions-cutting targets agreed by EU leaders last March, and require approval by member states and the European Parliament.
Resistance is expected over targets for each country to cut greenhouse gases and install renewable energy.
Business has sought to soften the emissions trading reform, demanding special protection for energy-intensive industries facing global competition such as steel, cement, aluminium and possibly chemicals and pulp and paper.
