INSTANT VIEW: EU leaders agree on climate change deal

LONDON (Reuters) - European Union leaders meeting at a summit on Friday unanimously agreed a deal on tackling climate change, which calls for EU greenhouse gas emissions to be cut by one fifth below 1990 levels by 2020.

YVO DE BOER, UNITED NATIONS CLIMATE CHIEF:

"This is a sign of developed countries' resolve and courage that the world has been waiting for (at U.N. climate talks in Poland). It shows the world that ambitious emission reduction goals by 2020 are in line with moving economic recovery in a green direction. This will contribute to propelling the world toward a strong, ambitious and ratifiable outcome in Copenhagen (climate talks) in 2009."

EVA NOVAKOVA, PRESS OFFICER, CEZ:

"We haven't yet calculated the direct impacts on CEZ but we think the compromise (on auctioning) reflects the situation in the market which we are now in. The package is good news for the entire energy sector as it supports new technologies and enables us to fulfill the targets which the EU adopted."

EMMANUEL FAGES, COAL & CARBON ANALYST, SOCIETE GENERALE:

"(The CCS funds) are not going to finance all the pilot projects they might want, but it's sending the right signal to support CCS. They shouldn't give too much, there should be private money to compliment the public funds."

TREVOR SIKORSKI, HEAD OF CARBON RESEARCH, BARCLAYS CAPITAL:

"It's great that the environmental integrity of the (emissions) cap is left intact. It was better to compromise on auctioning than on anything which would directly influence carbon prices. The worst thing for the carbon market would have been that the package was not agreed this year before the Parliament breaks up."

ON CCS FUNDS: "6 billion euros is enough to get a number of demonstration plants up and running, but I don't know if it's enough for 12. Private money will also have to be added to the subsidies."

MARK C. LEWIS, CARBON ANALYST, DEUTSCHE BANK:

"Getting a deal trumped everything. If there was no deal, there was a risk of real drift toward (U.N. climate talks in Copenhagen) which would have destroyed Europe's credibility on the issue."

ON AUCTIONING: "It means we have to live for a longer period time with the structural inefficiency the free allocation of permits gives to the market."

ALESSANDRO VITELLI, DIRECTOR, IDEAcarbon:

"It seems to be a considerable step backwards in terms of rigor from the Commission's and Parliament's proposals. More use of (offsets) and less auctioning will make it easier to meet goals, but at the cost of additionality and internalizing the cost of carbon."

GUY TURNER, DIRECTOR, NEW CARBON FINANCE

"The (deal) was in line with our expectations. I think there was a reasonable compromise given where we are in the world. The (compromise) on auctioning doesn't dramatically effect the fundamentals of the EU's (Emissions Trading Scheme). It should not materially effect the price of carbon."

ELSIE FORD, HEAD OF OXFAM IN BRUSSELS:

"The package - originally a strong set of laws proposed by the Commission - promised so much from the world's "first movers." But what member states agreed today delivers far too little. Millions of poor people have been left in danger because EU leaders bowed to business lobby pressure and faltered at an historic moment ... Europe's package looks too much like business-as-usual tied up in a green ribbon.

"This package gives too many exemptions to too many industries in too many countries ... (EU) member states, Parliament and the Commission must seize a final chance next year to reassemble the reputation of the European Union that was left in tatters today."

ROBIN WEBSTER, FRIENDS OF THE EARTH CLIMATE CAMPAIGNER:

"Huge loopholes allow big energy-users to carry on polluting and nations to buy offset 'credits' from abroad. Massive concessions were made to manufacturing industries, which will mean they are handed out rights to pollute.

"The targets for cutting greenhouse gas emissions are far too small. They should be at least 40 percent by 2020."

KIRSTY CLOUGH, CLIMATE CHANGE POLICY OFFICER, WWF:

"We feel it didn't go far enough at all and could be considered a significant failure. It relies a lot on offsetting which would allow a lot of the targets to be met overseas outside the EU.

"Auctioning has been weakened quite significantly. Worryingly, a lot of the other industrial sectors in the scheme will be allowed to opt out of having to purchase many of their allowances and it hasn't been proved that any of them are subject to undue adverse competitiveness effects."

(Reporting by Michael Szabo and Nina Chestney)