European Union leaders have agreed to significantly reduce greenhouse gas emissions and transition to renewable fuels, setting a challenge for other countries to also take action against climate change. German Chancellor Angela Merkel praised the EU's ambitious decisions, such as a binding target for renewable energy to account for 20% of EU energy consumption by 2020, positioning the EU as a leader in the fight against global warming. European Commission President Jose Manuel Barroso emphasized that Europe is leading the way in combating climate change and called on other nations to join in these efforts. The EU package established goals for reducing greenhouse gas emissions linked to global warming, promoting renewable energy sources, improving energy efficiency, and utilizing biofuels. The leaders have called for mandatory energy-saving lighting in homes, offices, and streets by the end of the decade, impacting all 490 million citizens of the bloc. Barroso believes that Europe can benefit economically by investing in green technology early, but businesses fear high costs and potential loss of competitiveness to cheaper foreign competitors. The agreement outlined EU-wide targets for reducing CO2 emissions and increasing renewable energy sources, with individual member states needing to agree to national targets, leading to potential disagreements between Brussels and governments. Merkel achieved a diplomatic win by securing a binding target for renewable fuels like solar, wind, and hydro-electric power, which was a highly debated issue. Leaders agreed to the 20 percent target for renewable sources in exchange for flexibility on individual country contributions. The United Nations, responsible for coordinating global climate change efforts, praised the plan as ambitious in light of increasing greenhouse gas emissions. Deputy UN spokeswoman Marie Okabe emphasized the importance of ambition and leadership in addressing climate change, calling it one of the most significant challenges facing humanity. British Prime Minister Tony Blair described the targets as groundbreaking, bold, and ambitious for the European Union. He informed reporters that Europe would need to put in a significant amount of effort to ensure this, but it would ultimately give Europe a strong leadership position on the important issue facing the world. The summit statement pleased countries that rely on nuclear energy, like France, coal, like Poland, and smaller countries with limited energy resources, such as Cyprus and Malta, by promising to respect their national energy mixes and potentials. The leaders agreed to aim to reduce EU greenhouse gas emissions by 20 percent by 2020, with a potential increase to 30 percent if major nations like the United States, Russia, China, and India do the same. They also set a target of 10 percent for biofuels in transport by 2020, to be implemented in a cost-effective manner. However, they did not support the European Commission's proposal to require large utility groups to sell or spin off their generation businesses and distribution grids. Instead, they came to an agreement on the necessity of separating supply and production activities from network operations, without mentioning the breakup of major energy companies like E.ON, RWE, Gaz de France, and EDF. Currently, renewable energy makes up less than 7 percent of the EU energy mix, and the bloc is not meeting its targets for renewable energy and reducing carbon dioxide emissions. French President Jacques Chirac argued for the inclusion of nuclear power in Europe's efforts to reduce greenhouse gas emissions, as it supplies 70 percent of France's electricity. However, some EU countries oppose nuclear power, with Germany even phasing it out. Poland secured a commitment to solidarity among member states in case Russia cuts off energy supplies. Many ex-communist member states in central Europe were hesitant to accept the renewables target due to concerns about the costs of the green energy revolution. Merkel, as chair of the Group of Eight industrialized powers, is advocating for the EU to lead the way in setting the environmental agenda. The outcome of the summit will influence the EU's stance in international discussions to replace the expiring UN Kyoto Protocol in 2012. Environmentalists, who have been critical of EU efforts in the past, praised the agreement as a significant step forward.