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The European Commission (EC) announced on Thursday an action plan setting an ambitious goal of cutting Europe's energy consumption by 20 percent before 2020.

The Energy Efficiency Action Plan (EEAP), unveiled by EC Energy Commissioner Andris Piebalgs, introduces over 75 ambitious measures including tougher energy standards for electrical goods, a low-energy building strategy and more fuel efficient cars.

The action plan says that such measures, if implemented, would deliver an annual saving of € 100 billion (around US$126 billion) for the European Union (EU), the world's second largest consumer of energy.

They would also help the EU meet its Kyoto Protocol target to cut emissions by 8 percent.

The action plan will be reviewed on Friday by EU leaders at a summit in Finland.

"Europeans need to save energy. Europe wastes at least 20 percent of the energy it uses," Piebalgs told a press conference here at the EU headquarters.

"Energy efficiency is crucial for Europe: If we take action now, the direct cost of our energy consumption could be reduced by more than 100 billion euros annually by 2020; around 780 millions tons of CO2 will also be avoided yearly," he pointed out.

The action plan has identified 10 priority areas, including:

-- updated eco-labels on electrical goods;

-- possible legislation to deliver car emissions targets;

-- encouraging investment in energy efficiency;

-- making power plants more efficient;

-- energy saving taxes and incentives.

The action plan was the first formal document to be published since the adoption of a European energy strategy in March, and its contents will be considered by ministers at the EU Energy Council in November.

The action plan also identifies potential energy saving in major areas by 2020:

 -- 27 percent for households;

 -- 30 percent for businesses;

-- 26 percent for transport;

-- 25 percent for manufacturing.

Piebalgs said the action plan would also look at ways to increase awareness among consumers about the need for greater efficiency.

"People should understand that each time they waste energy by opening a window they are not only actually destroying the potential to buy goods or save money, they are also making the climate warmer even through this small emission," he noted.

(Xinhua News Agency October 20, 2006)