EU:European Commission president José Manuel Barroso warned yesterday that Europe's credibility was at stake over the setting of binding targets for renewable energy.
In a plea to EU leaders to make renewables account for 20 per cent of total energy consumption by 2020, Mr Barroso said tomorrow's EU summit would be decisive for future generations. He also asked member states to stop insisting on retaining complete control over their energy infrastructure and open their markets to full competition.
"This week, the eyes of the world will be on the European Council, from Washington to Moscow to Beijing. The EU needs to continue to show world leadership," said Mr Barroso. "It is much more credible to have a binding target than an indicative target." Mr Barroso said a successful summit would enable the EU to push ahead on the creation of a new international mechanism to tackle global warming.
EU leaders will debate a package of measures dealing with climate change, security of energy supply and competitiveness at the summit.
They are expected to agree binding targets to cut CO2 emissions by 20 per cent by 2020, with the possibility of extending this to 30 per cent if large emitters such as the US and China agree to join a post-Kyoto Protocol international mechanism to tackle global warming. But they are divided over the renewable target and a proposal to fully liberalise energy markets.
Many states in central and eastern Europe, such as Poland and Slovakia, believe setting a binding target of 20 per cent for renewable energy is unrealistic. Some states such as France are unhappy because they feel that the target does not recognise the efforts they have made to reduce CO2 emissions.
Germany, which holds the presidency of the EU, privately played down expectations of a major breakthrough on setting a binding renewable target for 2020. A German source said 15 countries remained on one side of the debate and 11 on the other. A second proposal to fully "unbundle" energy networks was also unlikely to be solved by prime ministers and presidents at the summit, he added.
This plan, which has been championed by the commission, would force energy firms such as the German giant EON to sell off their transmission networks and gas pipelines and concentrate on supplying customers rather than maintaining networks. Commission experts say this would boost competition and prevent former state monopolies from shutting out competitors and new entrants to their markets.
However, France and Germany both oppose the proposal, which they fear could undermine the business interests of their big energy companies.
The commission has also presented a second option that would enable energy firms to retain ownership of the network but cede control to an independent operator. Other proposals are also likely to be considered, such as creating regional energy networks.