Dec. 13 (Bloomberg) -- European Union negotiators approved targets for EU countries to limit greenhouse gases from industries outside the emissions-trading system after overcoming differences over the use of imported credits by governments.

The representatives of EU national governments and the European Parliament set goals ranging from a minimum 20 percent emissions reduction for countries such as Denmark and Ireland to a maximum 20 percent increase for Bulgaria compared with 2005.

Under today’s deal, EU nations will be able each year in 2013-2020 to use foreign credits that are equal to as much as 3 percent of 2005 emissions to help meet the binding targets, Philippe Ray, a spokesman for the French government, which holds the bloc’s rotating presidency, said by telephone. Some member states will also be entitled annually to an extra 1 percent quantity, he said.

The legislation would create a national burden-sharing arrangement for controlling discharges from industries including buildings and agriculture that account for about 60 percent of EU emissions blamed for climate change. The strictness of each target reflects the wealth of the member state.

The law, which still needs to be rubber-stamped by the full 785-seat Parliament and national governments, is part of EU efforts to reduce greenhouse gases such as carbon dioxide by a fifth in 2020 compared with 1990.

The European Commission proposed the rules in January along with a draft law that would cut annual CO2 quotas on energy and manufacturing companies now in the emissions-trading system by 11 percent on average in 2013-2020 compared with 2008-2012. The Parliament plans to vote Dec. 17 on both pieces of legislation.

Credits

Today’s agreement came after the Parliament negotiators abandoned a push to set a stricter limit on member states’ use of emission credits generated by clean-energy projects in developing countries. In October, the Parliament’s environment committee voted to set the ceiling for the entire 2013-2020 period at 8 percent, or an average annual limit of 1 percent.

The commission, the 27-nation EU’s regulatory arm, had proposed to let EU nations annually in 2013-2020 use foreign credits that are equal to a maximum 3 percent of 2005 emissions by the industries outside the trading system.

Today’s accord endorses that limit as well as a demand yesterday by EU heads of government at a summit meeting for 12 member states to be able to use extra credits amounting to 1 percent of their 2005 emissions for projects in the least developed countries and poor island nations.

The agreement also allows governments to carry over any unused part of the 3 percent annual quantity from one year to another or to transfer that part to other member states. The provisions on the use of imported credits would apply as long as no global accord has been reached to succeed the Kyoto Protocol, which expires in 2012.

Following are the country-specific targets for EU nations to limit greenhouse gases in 2020 compared with 2005:

Austria        -16 percent
Belgium        -15 percent
Bulgaria       +20 percent
Cyprus         -5 percent
Czech Republic +9 percent
Denmark        -20 percent
Estonia        +11 percent
Finland        -16 percent
France         -14 percent
Germany        -14 percent
Greece         -4 percent
Hungary        +10 percent
Ireland        -20 percent
Italy          -13 percent
Latvia         +17 percent
Lithuania      +15 percent
Luxembourg     -20 percent
Malta          +5 percent
Netherlands    -16 percent
Poland         +14 percent
Portugal       +1 percent
Romania        +19 percent
Slovakia       +13 percent
Slovenia       +4 percent
Spain          -10 percent
Sweden         -17 percent
U.K.           -16 percent

To contact the reporter on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net

Last Updated: December 13, 2008 12:13 EST