European Union leaders have made a decision to reduce greenhouse gas emissions and transition to renewable fuels. They are challenging other countries to follow their example in combatting climate change. German Chancellor Angela Merkel praised the bloc's ambitious decisions, which include a binding target for renewable energy to make up one-fifth of EU energy use by 2020. She stated that the EU is at the forefront of the fight against global warming and emphasized the importance of international cooperation. European Commission President Jose Manuel Barroso also urged other countries to join Europe in fighting climate change. The EU package established goals to reduce greenhouse gas emissions, promote renewable energy sources, increase energy efficiency, and utilize biofuels. This will impact all 490 million citizens in the bloc, with a requirement for energy-saving lighting in homes, offices, and streets by the end of the decade. Barroso believes Europe can benefit economically by investing in green technology, but businesses are worried about potential costs and competition from cheaper, less environmentally friendly foreign companies. While the agreement set Europe-wide targets for reducing CO2 emissions and increasing renewable energy, individual member states must agree to specific goals, leading to potential conflicts between Brussels and national governments. Merkel successfully negotiated a legally binding target for renewable fuels like solar, wind, and hydro-electric power, which was a major point of contention. Leaders agreed to the 20 percent target for renewable sources in exchange for flexibility on individual countries' contributions. The United Nations, which has been coordinating global efforts to address climate change, praised the plan. Deputy UN spokeswoman Marie Okabe stated that committing to a significant decrease in greenhouse gas emissions in the next decade is ambitious but necessary to combat climate change, which is one of humanity's greatest challenges. British Prime Minister Tony Blair described the targets for the European Union as groundbreaking, bold, and ambitious. "They need to put in a lot of effort for Europe to achieve this, but it will give Europe a strong leadership position on this important global issue," he informed reporters. The summit statement pleased countries like France, Poland, Cyprus, and Malta by agreeing to respect their national energy sources. The leaders agreed to a goal of reducing EU greenhouse gas emissions by 20 percent by 2020, with a possibility of increasing it to 30 percent if other major nations also comply. They also set a target of 10 percent for biofuels in transportation by 2020, to be implemented in a cost-effective manner. However, they did not support the European Commission's proposal to require large utility companies to divest their generation and distribution businesses. They agreed on the importance of separating supply and production activities from network operations, but did not mention breaking up energy giants like E.ON, RWE, Gaz de France, and EDF. Renewables currently 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 that nuclear power, which accounts for 70 percent of France's electricity, should also be considered in Europe's efforts to reduce greenhouse gas emissions. However, some EU countries are against nuclear power, while others, like Germany, are phasing it out. Poland secured a commitment to solidarity among member states, hinting at western Europe supporting former Soviet bloc countries in case of energy supply disruptions from Russia. Many new ex-communist member states in central Europe were hesitant to agree to the renewables target due to concerns about the costs of transitioning to green energy. Merkel, as the 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 global discussions to replace the expiring UN Kyoto Protocol in 2012. Environmentalists, who typically criticize EU initiatives, praised the agreement as a significant advancement.