Europe reached a broad agreement to combat climate change on Friday by compensating eastern European countries to accept measures that will penalize their heavily polluting power sectors and increase electricity prices. The deal, which aims to reduce carbon dioxide emissions by 20% by 2020, was achieved despite economic challenges through various exemptions for industry, leading to criticism from environmental organizations. While some view the policy as lacking leadership and effectiveness, French President Nicolas Sarkozy described it as a historic achievement, emphasizing the strict and binding regulations adopted by the continent. The agreement was reached after a long battle lasting a year, which was mainly focused on a conflict between eastern and western Europe regarding the expenses. The nine eastern European countries were seen as the main obstacle to reaching an agreement on a set of measures aimed at addressing climate change, which would increase costs for their highly polluting coal-fired power industries. A portion of the funds, around 12 percent of revenues from the EU's emissions trading scheme, will be allocated to these countries. This money is meant to recognize the significant decrease in emissions they achieved after the collapse of their industries following the end of communism. Additionally, their power industries were given some exemptions from paying for emissions permits under the ETS, with the amount they need to pay gradually increasing from 30 percent in 2013 to 100 percent in 2020. Hungary and Italy both fought during negotiations for more funding, with Italy specifically protecting its glass, ceramics, paper, and cast iron industries. Italian Prime Minister Silvio Berlusconi expressed reluctance to veto the deal due to political repercussions. Measures were put in place to minimize the impact of carbon restrictions on European industry, particularly in sectors like steel, aluminum, cement, and chemicals. Industries facing international competition will be given free emissions permits if they experience a 5 percent cost increase, which is expected to benefit over 90 percent of EU industry. A British diplomat stated that Britain was successful in obtaining increased funding for advanced technology to store emissions from power plants underground in exhausted North Sea gas fields. The diplomat emphasized that Gordon Brown prioritized this initiative for its environmental advantages, as well as the potential for Europe to take the lead in creating jobs and promoting economic growth.