Europe reached a significant agreement on Friday to combat climate change by offering financial incentives to eastern European countries to accept changes that will penalize their heavily polluting power sectors and increase electricity prices. Despite criticism from environmental groups for allowing exemptions for industry, the deal aims to reduce carbon dioxide emissions by 20% by 2020. While some view the policy as lacking leadership and having flaws, French President Nicolas Sarkozy described it as historic and emphasized the binding nature of the rules adopted by Europe. The agreement was reached at the end of a year-long dispute between eastern and western Europe regarding the expenses involved. The nine eastern European countries were the main obstacle to reaching an agreement on measures to address climate change, as these measures would increase costs for their coal-fired power industries. A portion of the revenues from the EU's emissions trading scheme will be allocated to these countries to provide funding. This funding is considered a reward for the significant reduction in emissions that occurred when their industries collapsed after the fall of communism. Additionally, their power sectors will gradually start paying for emissions permits from the ETS, beginning with 30 percent in 2013 and increasing to 100 percent by 2020. Hungary and Italy both faced challenges during negotiations for more money, with Italy being particularly concerned about protecting its industries such as glass, ceramics, paper, and cast iron. Italian Prime Minister Silvio Berlusconi expressed reluctance to veto the deal on climate issues, as he did not want to be perceived as the bad guy by the opposition. Measures were put in place to minimize the impact of carbon restrictions on European industry, particularly in sectors like steel, aluminum, cement, and chemicals. European industries facing global competition will receive free emissions permits if their costs increase by 5 percent or more, a move that is expected to benefit over 90 percent of EU industry. A British diplomat stated that Britain was successful in obtaining increased funding for cutting-edge technology to capture and store emissions from power plants underground in exhausted North Sea gas fields. This initiative was a priority for Gordon Brown, as it not only benefits the environment but also positions Europe as a leader in job creation and economic growth.