EU shifts last hurdle to green energy deal

Pete Harrison, Reuters 8 Dec 08;

BRUSSELS (Reuters) - The European Union has resolved the last remaining dispute preventing a deal to boost green energy after Italy agreed to a compromise over its demand the laws be reviewed in 2014.

Negotiators last week struck a rough agreement to source 20 percent of EU energy from renewable sources, but they failed to break a deadlock between Italy and the European Parliament over Italy's demand for a review.

"We took significant steps forward today," Claudio Scajola, Italy's minister for economic development, told reporters.

The green energy laws are a major part of an EU package to fight climate change, which it hopes will help spur a global deal with other big emitters like China and the United States.

The European Wind Energy Association (EWEA) welcomed progress on what it described as the most important legislation in the industry's history.

EU sources said Monday's compromise meant that while the green energy proposals could be altered in 2014, national targets and financial support schemes could not be touched.

"Everybody was against a review clause that could have appeared as an escape route," said Jean-Louis Borloo, France's environment minister.

The deal will still need approval by the European Parliament and all 27 European Union nations before becoming law, but is not expected to change much.

"Europe is turning away from transferring ever larger amounts of European citizens' wealth to a handful of fuel-exporting nations, opting instead to put the money to work at home and exploit our abundant domestic renewable energy," said EWEA Chief Executive Christian Kjaer.

The breakthrough paved the way for a package of measures forcing EU nations to roll out detailed strategies on how to reach their national targets for green energy.

And mechanisms have been agreed to improve the access of renewable energy to electricity grids.

"The grid and administrative barriers whose shadows loom long over wind energy project developers will finally be tackled," said EWEA's Kjaer.

(Additional reporting by Francesco Guarascio; Editing by Sophie Hares)