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BRUSSELS-EU leaders on Friday agreed to finalise, by the end of the year, ambitious plans to cut energy use and fight climate change, while promising to limit the costs to worried industries.The European leaders feel it is vital to present a united front on tackling climate change at key international negotiations next year where they will be hoping to persuade major polluters such as China and India to follow suit.While seeking to tackle global warming they also voiced concerns over cooling economic prospects, amid record oil prices, euro levels and inflation.On the energy-climate front, the 27 heads of state and government "committed ourselves to finishing negotiating on this package by the end of this year and by doing this we made a huge step forward," Slovenian Prime Minister Janez Jansa after chairing the two-day summit.The plan, which the EU leaders hope will be turned into legislation early next year, aims to meet the European Union's over-arching goal to reduce emissions of carbon dioxide-the main gas responsible for global warming-by 20 percent by 2020, compared to 1990 levels.They have committed to go to 30 percent if other countries would match them.However the strong ambitions could not hide preoccupations among many of the member states for their own particular national interests.A last-minute change to the draft increased room for manoeuvre in the climate change goals, including a mention that the targets should be introduced so as to "avoid excessive costs for member states."Another widespread concern among Europeans is the possibility of so-called carbon leakage, whereby heavy industry migrates out of Europe to cheaper, less-regulated countries-taking the pollution and the jobs with them.German Chancellor Angela Merkel said she wants guarantees for heavy industry, such as steel and cement, in 2009 rather than in 2011 as planned, but added Friday that so far she had received no concessions from her EU partners.Other nations, including Ireland, echoed that wish.The agreement also includes a carbon trading system and a political commitment that biofuels, made from plants, should make up 10 percent of total vehicle fuel in Europe by 2020.However Jansa cast doubt on that initiative, suggesting on Thursday that the biofuels target could be amended amid fears it will further hit soaring food prices as fuel crops such as colza take land from traditional crops.European industry's concern at stiffer rules comes amid record-high oil prices, eurozone inflation at a record 3.3 percent and the euro at new highs just short of 1.57 dollars.French President Nicolas Sarkozy and British Prime Minister Gordon Brown expressed satisfaction that their fellow EU leaders had also agreed to consider cutting value-added tax (VAT) on environmentally friendly domestic products."I think people have been persuaded by the argument that we should look at this very carefully," Brown told reporters after the meeting."If-whether it be fridges or household goods generally, or whether it be the insulation materials that make for more energy efficient homes-we can cut the rates of VAT, then I believe that will be a good thing for Europe," he added.The EU members want to clinch a deal among themselves on fighting climate change this year so that Europe will be in a strong position to set the standard at international climate warming talks in Copenhagen in November 2009.The European leaders also approved a watered-down version of a French scheme for a Mediterranean Union aimed at strengthening cooperation with countries from Morocco to Turkey.As in the days of Noah.....
