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Climate set to dominate EU summit Tough climate talks at EU summit
(about 9 hours later)
Climate change, energy security and reform are set to dominate the European Union's summit in Brussels. European Union leaders have begun a summit with calls for action on climate change tempered by concern for industry amid worsening economic conditions.
The EU seeks to lead global efforts to cut the production of greenhouse gases and has pledged serious reductions. The two-day EU summit is focused on how to implement a 20% cut in CO2 emissions by 2020, compared to 1990 levels.
On hand to stiffen the 27 leaders' resolve will be a report from the EU's foreign policy chief Javier Solana. "One year ago we adopted it... now we have to translate this commitment into concrete legislation," said European Commission head Jose Manuel Barroso.
The report maps out the impact of rising temperatures and predicts mass migration from Africa and the Middle East to Europe from the year 2020. Also on the agenda are transparency in banking and a Mediterranean union plan.
The two-day summit will try to work out how to implement a 20% reduction in CO2 by 2020 compared to 1990 levels. Among the most controversial topics are ways of cutting emissions from energy-intensive industries such as steel, cement and aluminium, as well as from cars - discussed amid concerns over high oil prices and turmoil on global financial markets.
That target was set last year, and now many EU leaders warn that time is of the essence if the bloc wants to take a lead in international negotiations. Mr Barroso said the EU wanted to "definitely avoid" driving such industries out of Europe because of tough environmental requirements.
"The momentum cannot be allowed to slip. The timing of an agreement is critical to its success," European Commission President Jose Manuel Barroso said on the eve of the summit. Jobs fears
In Brussels, British and French leaders are expected to call for changes to the tax regime to allow countries to reduce taxes on so-called green goods. Correspondents say leaders from the 27 member states are expected to agree that richer EU nations should take on heavier carbon emissions cuts than poor ones, because of fears of the impact on weaker economies.
But differences reportedly remain among member states over how to reform the EU's energy sector, particularly how to handle the needs of energy-intensive industries and whether to break up big power companies. The EU leads a self-proclaimed crusade on climate changeBut some rich countries also fear taking an economic hit.
The summit will also be looking at the issue of security of energy supplies and discuss the upheavals in world financial markets. German Chancellor Angela Merkel said she would "make a point of sticking up for jobs in the car industry in Germany".
But hard decisions on climate change and energy will have to wait for another summit later in the year, the BBC's Jonny Dymond in Brussels says. "It cannot be that nations that make big cars are punished more than countries that make small cars," she said.
British Prime Minister Gordon Brown is calling at the summit for an EU-wide reduction of sales taxes on "green" products such as loft-insulation and low-energy light bulbs, televisions and household appliances.
A report from the EU's foreign policy chief Javier Solana says climate change is already having a detrimental effect on the conflict in Darfur, migration from flood-prone Bangladesh and hopes for stability in the Middle East.
Gloomy outlook
The EU is seeking to lead global efforts to cut the reduction of greenhouse gas emissions, as world leaders gear up for talks in 2009 on an agreement to succeed the Kyoto Protocol.
The BBC's Alex Kroeger in Brussels says it will be much harder for the EU to call on other nations to cut their emissions if it has not got its own house in order by then.
Although the leaders agree on their aims, it was one thing to commit to them a year - when economic conditions were good - but will be another to implement them amid fears of a global economic downturn, our correspondent says.
Environmental campaign group Greenpeace said the proposed 20% reduction was "way short of the mark".
"We are heading for a climate crisis unless EU leaders pull their socks up" said the group's Mahi Sideridou, calling for a 30% target.
'Club Med'
Also up for discussion was a plan, proposed by French President Nicolas Sarkozy, to create a forum to link European nations more closely with North African and Middle Eastern countries around the Mediterranean Sea.
But some other member states are concerned that the EU will have to foot the bill for the project without seeing great gains from it.
With concerns over the global economy also high on the agenda, Mr Barroso also urged leaders to "avoid the temptation of becoming protectionist".
The member states are expected to push for banks to be more open about their losses, in the wake of the sub-prime mortgage crisis in the US.