European Union leaders reaffirmed ambitious goals to combat climate change today but stressed they must be affordable for governments and industry at a time of economic downturn and market turmoil.
A draft final statement at a two-day summit in Brussels called for cost-effective and flexible mechanisms to reach energy and climate policy objectives, adding the tell-tale phrase "so as to avoid excessive costs for member states".
The leaders pledged to enact the necessary laws within a year to meet their goals of slashing greenhouse gas emissions by 2020 and increasing the share of wind, solar, hydro and wave power,and biofuels by the same date.
But they stressed the need to ensure that the high cost of carbon trading, the EU's central instrument in the fight against global warming, should not drive sectors like steel, cement, paper and aluminium out of Europe or out of business.
After chairing the first day of a two-day summit, Slovenian Prime Minister Janez Jansa told a news conference that all 27 leaders agreed to adopt a liberalisation of the European energy market in June and measures to fight global warming and promote green energy in December.
Slovenia Prime Minister Janez Jansa
But several leaders said a deal would be difficult because of conflicting national priorities.
German Chancellor Angela Merkel said she wanted early guarantees of special treatment for energy-intensive industries such as steel, cement, paper and aluminium, so they could plan investments. Diplomats said other countries backed her.
However Britain, Sweden and the Netherlands opposed Ms Merkel's demand that the EU agree in 2009 on conditions for big energy users, saying it would weaken the EU's hand in global talks on curbing emissions.
Aside from cutting emissions by at least one-fifth by 2020 from 1990 levels, EU states have agreed to use 20 per cent of renewable energy sources in power production and 10 per cent of biofuels from crops in transport by the same date.
Mr Jansa acknowledged growing debate among scientists and economists about the desirability of the biofuels target, saying: "We're not excluding the possibility that we'll have to amend or revise our goals."