Barroso declares full steam ahead with EU's green plans

The European Commission yesterday confirmed that it is to press ahead with its energy and climate change plans, despite growing pressure from rising fuel prices.

Experts have predicted a wave of fuel protests across the continent this summer as oil continues to trade at more than $130 (£67) a barrel and drivers face record prices at the pump. The increased fuel prices have led to calls for governments to abandon green taxes and other environmental measures that are likely to further drive up energy costs.

For example, plans currently being debated by EU member states to extend the European Emissions Trading Scheme (ETS) are expected to add between one and two pence per Kw/h to electricity bills, while expected increases in the price of carbon credits could drive up some raw material prices.

However, speaking following a debate on how to address rising fuel prices, commission president José Manuel Barroso insisted that it would not be diverted from its climate change proposals.

"At the heart of our approach [to rising energy prices] is the full implementation of the commission's energy and climate change proposals including increased energy diversification, security of energy supply and energy efficiency," he said. "We need to save energy, and to diversify the sources of supply. If we act swiftly and decisively, we can reduce the vulnerability of our citizens and our businesses, and support both our quality of life and our economic competitiveness."

He also called for a fuel summit between leading producing and consumer countries designed to promote greater transparency across the crude oil markets.

The commission also warned that the rise in oil prices is part of "a structural shift, rather than a temporary phenomenon", noting that global energy demand is likely to be 50 per cent higher in 2030 than in 2007. It added that under this business-as-usual scenario, EU energy import dependence would grow by 14 per cent to reach 67 per cent in 2030.

Barroso said that consequently it was critical that the EU's climate change plan – which includes targets to increase generate 20 per cent of the bloc's energy from renewable sources – is adopted.