6 In contrast, the Commissions new policy proposes, ideally, a break-up of these companies into suppliers and distributors. Properly independent managers of Europes energy networks would have a strong incentive to build interconnecting pipelines and power lines across borders. For the gas market another means of ensuring competition and security would be finding a more diverse range of suppliers, for example by building more terminals for the import of liquified natural gas. It would also be likely to mean lower prices, if the example of liberalised Britain over the past ten years is anything to go by.
7 Whether any of this is likely to happen soon, however, is another matter. The Commission is also calling for European governments to agree on a common effort to reduce carbon emissions by at least 20% by 2020 . If America is willing to play ball, the Commission proposes to reduce emissions by as much as 30%. Achieving either target would mean promoting cleaner cars, a more effective emissions-trading system for Europe, wider use of public transport and a sharp increase in the use of renewable sources of energy, like wind and solar power. All that is laudable enough, but will also require political horse-trading as governmentsEuropes leaders are due to meet in March to discuss the various energy proposalstry to avoid commitments that may hurt domestic energy companies or make European firms less competitive than rivals in America, Asia and elsewhere.
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