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EU leaders focus on climate deal EU leaders focus on climate deal
(10 minutes later)
Leaders of the European Union are said to be close to a compromise agreement on how to achieve ambitious targets to fight global warming.Leaders of the European Union are said to be close to a compromise agreement on how to achieve ambitious targets to fight global warming.
They are attempting to agree a mechanism whereby the EU could cut carbon emissions by 20% by 2020.They are attempting to agree a mechanism whereby the EU could cut carbon emissions by 20% by 2020.
They have also agreed in principal a 200bn-euro economic stimulus package.They have also agreed in principal a 200bn-euro economic stimulus package.
Earlier, EU members reportedly agreed a series of concessions to the Irish Republic enabling it to hold a second referendum on the Lisbon reform treaty.Earlier, EU members reportedly agreed a series of concessions to the Irish Republic enabling it to hold a second referendum on the Lisbon reform treaty.
Dublin's rejection of the treaty in June stalled the project, which is aimed at simplifying decision-making in the 27-member bloc.Dublin's rejection of the treaty in June stalled the project, which is aimed at simplifying decision-making in the 27-member bloc.
ConcessionsConcessions
At the end of a first day of talks at the summit in Brussels, EU leaders moved closer towards agreement on the so-called "20-20-20" package to tackle climate change after concessions were made to limit its impact on struggling industries.At the end of a first day of talks at the summit in Brussels, EU leaders moved closer towards agreement on the so-called "20-20-20" package to tackle climate change after concessions were made to limit its impact on struggling industries.
Some EU countries want auctions of pollution permits delayedSome EU countries want auctions of pollution permits delayed
The measures, which also require approval by the European Parliament to become law, would commit the EU to cutting carbon dioxide (CO2) emissions by 20% by 2020, compared to 1990 levels, and to raising renewable sources to 20% of total energy use.The measures, which also require approval by the European Parliament to become law, would commit the EU to cutting carbon dioxide (CO2) emissions by 20% by 2020, compared to 1990 levels, and to raising renewable sources to 20% of total energy use.
The talks are going on concurrently with a UN climate conference in Poznan, Poland, where former US presidential candidate John Kerry said the United States was set to lead the world towards a new climate deal.The talks are going on concurrently with a UN climate conference in Poznan, Poland, where former US presidential candidate John Kerry said the United States was set to lead the world towards a new climate deal.
Mr Kerry, who is representing President-elect Barack Obama, said the aim of agreeing a deal by next year must remain on track.Mr Kerry, who is representing President-elect Barack Obama, said the aim of agreeing a deal by next year must remain on track.
'Heading for compromise''Heading for compromise'
The BBC's Jonny Dymond, in Brussels, says an EU deal seems to be coming, but there were some very long faces as the summit broke up on Thursday night.The BBC's Jonny Dymond, in Brussels, says an EU deal seems to be coming, but there were some very long faces as the summit broke up on Thursday night.
EU 20-20-20 TARGETS 20% cut in greenhouse gas emissions by 202020% increase in use of renewable energy by 202020% cut in energy consumption through improved energy efficiency by 2020 France races to clinch EU dealsIn depth: Climate changeEU climate package explained
There is concern in some quarters that the compromise proposed has led to the overall aim of the package being undermined.There is concern in some quarters that the compromise proposed has led to the overall aim of the package being undermined.
Italy's threat to veto a deal because of its concern over the impact on industry appears to have gone, our correspondent says. Prime Minister Silvio Berlusconi said on Friday that the EU was "heading towards a compromise". East European nations will be handed extra carbon credits free of charge, and industries in western Europe will get huge sweeteners which reduce the cost of cutting emissions - but there are still disputes over how many credits and to how many industries.
"Italy is on the way to getting all it wants," he added. What is more, billions of pounds will be lost from green good causes because governments will auction fewer permits, so raising less cash. And the carbon price will be depressed because so many free credits have been offered - this will act as a deterrent for firms to invest in clean technology.
Poland, which has been offered incentives along with concessions on its coal-based power industry, said its position was being taken into account. Speaking off the record, a UK source said they were very unhappy with the current proposals, and too much had been given away - particularly to German industry.
If we fail to reach an agreement at this summit, it will be disastrous for climate negotiations next year Danish PM Anders Fogh Rasmussen BBC environment analyst Roger Harrabin, who is at the Poznan talks, said that from the point of view of UN climate delegates, the crucial message from Brussels was for the EU to stick to its headline 20% commitment.
Germany, which is set to get more time to allow its heavy industry to adjust, meanwhile said it had good hopes for a deal. But the concessions made to industry will damage Europe's image among developing countries - and will have an impact on a future global climate deal, he said.
Steel, cement, chemicals, paper and other industries will be sheltered from the added cost of buying permits to emit CO2 from the EU's Emissions Trading Scheme (ETS), according to a draft text seen by BBC News. Another contentious area is the EU's plan to allow countries to buy cheap carbon credits from poor nations rather than cutting emissions at home.
Our correspondent says that aside from the question of who pays, the risk is twofold - a high number of free permits may lead to chronic distortion in the emissions trading market; and if swathes of carbon generation are left out of the system, then the ambition of establishing Europe on a low-carbon trajectory will not be met. If we fail to reach an agreement at this summit, it will be disastrous for climate negotiations next year Danish PM Anders Fogh Rasmussen The environment group WWF told BBC News that their calculations suggested that many sectors of the economy would be able, under current proposals, to buy 60-70% of their credits abroad.
A new formal proposal will be issued by the French presidency before the meeting breaks for the night. Leaders will then return with their reaction in the morning. The group said this would undermine Europe's drive towards a low-carbon economy.
A new formal proposal was to be issued by the French presidency before the meeting broke for the night. Leaders will then return with their reaction in the morning.
At the start of the discussions on Thursday, French President Nicolas Sarkozy said he hoped his fellow leaders would be able to unite on a climate package.At the start of the discussions on Thursday, French President Nicolas Sarkozy said he hoped his fellow leaders would be able to unite on a climate package.
EU 20-20-20 TARGETS 20% cut in greenhouse gas emissions by 202020% increase in use of renewable energy by 202020% cut in energy consumption through improved energy efficiency by 2020 France races to clinch EU dealsIn depth: Climate changeEU climate package explained
"Europe must not provide the spectacle of its own division," he said."Europe must not provide the spectacle of its own division," he said.
Danish Prime Minister Anders Fogh Rasmussen warned that a successful EU deal was vital to persuade other major greenhouse gas emitters to agree to cuts at the UN Climate Change Conference in Copenhagen next year.Danish Prime Minister Anders Fogh Rasmussen warned that a successful EU deal was vital to persuade other major greenhouse gas emitters to agree to cuts at the UN Climate Change Conference in Copenhagen next year.
The comments were echoed by the UN secretary-general at a conference in Poland, who warned governments worldwide against backsliding in their efforts to tackle global warming, as they struggled to cope with the economic downturn.
Ban Ki-moon said the financial crisis was serious, but the fight against climate change was "the defining challenge of our era".
Mr Ban called for a renewed sense of urgency in cutting carbon emissions and said Europe's leadership was vital.
Economy deal 'agreed'Economy deal 'agreed'
Also discussed at Thursday's meeting was the EU's proposed 200bn-euro (£175bn) "fiscal stimulus", equivalent to 1.5% of the bloc's projected gross domestic product (GDP).Also discussed at Thursday's meeting was the EU's proposed 200bn-euro (£175bn) "fiscal stimulus", equivalent to 1.5% of the bloc's projected gross domestic product (GDP).
Belgian Prime Minister Yves Leterme said a deal had been agreed "in principle" and that EU leaders would finalise a text on Friday.Belgian Prime Minister Yves Leterme said a deal had been agreed "in principle" and that EU leaders would finalise a text on Friday.
Italy's Prime Minister Berlusconi also said a broad agreement had been reached.Italy's Prime Minister Berlusconi also said a broad agreement had been reached.
The proposed fiscal stimulus would seek to boost employment and growth, and would involve everything from tax cuts to investment strategies, while taking account of differences between the economies of each member state.The proposed fiscal stimulus would seek to boost employment and growth, and would involve everything from tax cuts to investment strategies, while taking account of differences between the economies of each member state.