European Union leaders have decided to significantly reduce greenhouse gas emissions and transition to renewable fuels, urging other countries to follow their example in combating climate change. German Chancellor Angela Merkel praised the bloc's ambitious decisions, such as setting a binding target for renewable energy to account for one fifth of EU energy consumption by 2020, positioning the EU as a leader in the fight against global warming. After a two-day summit, Merkel emphasized the potential to prevent a major catastrophe, highlighting the newfound cooperation among the 27 EU nations. European Commission President Jose Manuel Barroso echoed Merkel's sentiments, stating that Europe is leading the charge in addressing climate change and encouraging other countries to join in. The EU package includes targets for reducing greenhouse gas emissions, increasing renewable energy sources, improving energy efficiency, and using biofuels. This will impact all 490 million citizens in the bloc, as energy-saving lighting will be mandatory in homes, offices, and streets by the end of the decade. Barroso believes that Europe can benefit economically by leading in green technology, but businesses are worried about costs and losing competitiveness to cheaper foreign competitors. The agreement establishes Europe-wide objectives for reducing CO2 emissions and promoting renewable energy, but individual countries must agree to specific targets, leading to potential conflicts between Brussels and national governments. Merkel succeeded in securing a binding target for renewable fuels like solar and wind 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, which has been overseeing global efforts to combat climate change, praised the plan as ambitious in the face of increasing greenhouse gas emissions. Deputy UN spokeswoman Marie Okabe emphasized that ambition and leadership are crucial in addressing climate change, which she described as one of the most significant challenges humanity is facing. British Prime Minister Tony Blair described the targets as groundbreaking, bold, and ambitious for the European Union. "It will require a significant amount of effort for Europe to achieve this, but it will establish Europe as a leader on this important global issue," he informed reporters. The summit statement addressed the needs of countries with various energy sources, including nuclear energy in France, coal in Poland, and limited resources in countries like Cyprus and Malta. The leaders agreed to a goal of reducing EU greenhouse gas emissions by 20 percent by 2020, with a possibility of increasing to 30 percent if other major nations also commit. Additionally, they set a target of 10 percent for biofuels in transportation by 2020, ensuring cost efficiency. However, they did not support the European Commission's proposal to require large utility companies to sell or separate their generation and distribution businesses. Instead, they reached an agreement on the importance of effectively separating supply and production activities from network operations, without mentioning the breakup of energy giants like E.ON, RWE, Gaz de France, and EDF. Currently, renewables make 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 nuclear power to be included in Europe's efforts to reduce greenhouse gas emissions, as it generates 70 percent of France's electricity. However, several EU countries oppose atomic power or are phasing it out, like Germany. Poland secured a commitment to solidarity among member states, implying that western Europe would aid former Soviet bloc states if Russia were to cut off energy supplies. Many ex-communist member states in central Europe were hesitant to agree to the renewables target due to concerns about costs from the green energy revolution. Merkel, as chair of the Group of Eight industrialized powers, aims to lead the EU in setting the environmental agenda. The summit's decisions will influence the EU's stance in international discussions to replace the UN Kyoto Protocol in 2012. Environmentalists praised the agreement as a significant development, despite being critical of EU actions in the past.