The European Union's goal is to limit global warming to less than 2°C above pre-industrial temperatures "as there is strong scientific evidence that climate change will become dangerous beyond this point", said an EC statement.
To stay below 2°C, global emissions need to peak before 2020 and then be cut to less than 50% of 1990 levels by 2050. This will require action by both developed and developing countries, says the EC.
Part of the effort should be an OECD-wide carbon market, linking the EU Emissions Trading Scheme with other comparable cap-and-trade systems in order to mitigate and to raise funds to fight climate change. "The market should be expanded to include major emerging economies by 2020 with a view to building a global carbon market" said the EC statement, which added that the Kyoto Protocol's Clean Development Mechanism should be reformed.
"For advanced developing countries and highly competitive economic sectors, the CDM should be gradually replaced by a sectoral crediting mechanism and cap-and-trade systems," stated the EC today.