EU aims to set the pace in fighting climate change

By Darren Ennis and Ingrid Melander

BRUSSELS (Reuters) - EU leaders agreed on a timetable for action on Thursday to tackle climate change that they hope will enable them to set the pace in global talks next year, but some voiced unease about the methods.

The European Union sees itself as a world leader in the fight against global warming after EU countries agreed last year to cut emissions by 2020 and increase the share of wind, solar, hydro and wave power in electricity output by the same date.

After chairing the first day of a two-day summit, Slovenian Prime Minister Janez Jansa told a news conference all 27 leaders agreed to adopt a liberalization of the European energy market in June and a package of measures to fight global warming and promote green energy in December.

"We must reach agreement in the first months of 2009 at the latest," said Jansa.

French President Nicolas Sarkozy said he was hopeful of reaching a package deal on climate change under France's presidency of the EU in the second half of this year.

But several leaders said a deal would be difficult because of conflicting national priorities.

German Chancellor Angela Merkel led a group of countries demanding early guarantees of special treatment for energy-intensive industries such as steel, cement, paper and aluminum, so they could plan investments, diplomats said.

Britain, Sweden and the Netherlands opposed Merkel's demand that the EU agree in 2009 on conditions for big energy users, saying it would weaken the EU's hand in global negotiations on curbing emissions.