The President of the European Commission, José Manuel Barroso, announced Wednesday the EU's new comprehensive plan to cut greenhouse gas emissions and boost renewable energy use.

The plans will transform Europe's energy supply by 2020, reducing greenhouse gas emissions 20% from their 1990 levels, or 30% if other countries match it, and ensuring that 20% of energy use comes from renewable sources, such as wind and solar power. Places like Britain may see a 10-fold increase in renewable energy production.

Said Barroso, "The struggle against climate change and the quest for secure, sustainable and competitive energy touches on every European, every day. That is why we can all sense a real shift in attitudes. Europeans want a vision, and a plan of action. Now we will show how a modern economy can be designed to meet the challenge. This is sustainable development in action."

The plan he said, "is hard-wired to reach our goals in an efficient way, using the market to drive change where it is most cost-effective, ensuring a level playing field while leaving as much as possible to Member States."

"Three Euros a Week."
The package includes specific, binding national targets for both expanding the use of renewables, and reducing emissions from major sectors including transportation, building, agriculture, and waste management. It also calls for expanding the borderless Emissions Trading System to accomodate big industrial emitters who are the least able to quickly change their practices.

These measures will be combined with investments in carbon capturing, new technologies, and second generation bio-fuels. While the plan calls for a 10% target for bio-fuels, Barroso said "I want to be clear that in putting forward proposals on biofuels, we have also fully respected the other side of the mandate, the need for environmental sustainability."

In stressing that the proposal had been designed to be as comprehensive, competitive, and fair as possible, Barroso also said it was important to respect the targets that are being set. "Without this, we will not look serious, to investors, to our negotiating partners, and most importantly, to our citizens."

With poorer nations and businesses concerned about the cost, Barroso said the cost was manageable and would work out to .5% of the GDP, or around "3 euros a week for everyone."

On the other hand, he pointed out that "Even on the most optimistic assumptions of the Stern Report, the cost of inaction is more than ten times that. And every day the price of oil and gas goes up, the real cost of the package falls. Instead of costs, we really should be talking about gains for the EU."

"One Million Jobs by 2020."
Barrosso highlighted benefits including job creation, energy security and independence from unstable foreign countries’ fossil fuel reserves. "The renewables sector alone will bring one million jobs by 2020. I am sure that once again, European industry will show its ability to innovate and adapt. Europe can be the first economy for the low-carbon age: we must seize this chance."

In triggering other nations to follow and help level the playing field for European companies meeting Kyoto standards, the European Commission is considering a charge on importers from nations without carbon limits. Companies from those countries may be required to buy carbon emissions allowances on exports into the E.U.

This would impact companies from nations including the U.S., that refused to commit to climate goals at last month’s U.N. Climate Conference in Bali, forcing them to pay for carbon emissions in the absence of their own national climate policies.  The system is designed so that exporters presently involved in carbon trading systems or carbon limited programs will be more advantaged than those not. In this way the scheme favors carbon- competitive Europeans, giving them a strategic leg-up in the market.

Key decisions on how to soften the impact on industry are still in negotiation, but the EU would like to finalize the agreement by the end of the year, ahead of a 2009 UN conference in Copenhagen.

The borderless nature of global warming requires collaborative solutions; and as the failed Kyoto Protocol expires, this new proposal shows the most comprehensive roadmap to date on addressing climate change. If the 27-member EU can act effectively at a supra-national level, it will provide a strong example and a solid push for the world to move forward with climate change solutions.