As the European Union prepares the draft declaration for the EU summit underway in Brussels, heads of state and government agree the climate package should be introduced in a "cost-effective manner" and "having regard to each member state's specific situation". Is that a sign of hope that Europe will take into account national concerns about the impact of the package on particular countries' economics?

Joanna Najfeld reports

The part of the draft declaration pertaining to the climate package was altered after Polish and Italian leaders said they were ready to veto the climate plan, because of its horrendous costs on their countries' economy. The compromised version made it possible for the European Union to stick to the December deadline for reaching agreement on the issue. But a lot remains to be decided, says Piotr Bonisławski of Kreab Brussels, a public affairs company working on energy and environmental issues: 'The negotiation process on the CO2 package is in a decisive moment now in Brussels and it's very important that the Polish industry intensifies its efforts in these last minute discussions.'

The originally proposed versions of the climate plan would oblige countries to cut greenhouse gas emissions by 20 percent by 2020, compared to 1990 levels. At the same time, it would introduce full auctioning of CO2 emission quotas in 2013. Presently, companies are granted the permits for free and if they exceed them, they are allowed to buy more.

Six EU countries: Poland, Greece, Hungary, Slovakia, Romania and Bulgaria built a blocking minority early October to oppose such a plan. The wanted the full auctioning requirement to be delayed. Such drastic measures introduced so suddenly would ruin their economies, they argued. That's why the Polish government has been consistent in opposing the climate package and threatened on Wednesday to veto the plan, together with Italy.

'If it will be so dangerous for Poland and other countries, as it seems to us today, we will not agree. Apparently our arguments are beginning to have serious effect on our richer partners,' said Prime Minister Donald Tusk.

Italian Prime Minister Silvio Berlusconi said European countries cannot afford such drastic regulations in the times of the global financial crisis.

For example, Poland's economy is almost entirely dependent on coal. Moreover, CO2 is a byproduct of virtually every industrial process. If countries are forced to reduce CO2 emissions, the companies will have to buy additional quota to keep up with the production. And that will cause the prices of everything to rise drastically, says Konrad Zasacki, who has worked as a consultant for companies struggling to meet environmental regulations: 'The cost of emission of CO2 is included in every price of every product that you use. What does it mean? To normal production costs of materials, media, energy, you will have to add the cost of buying the carbon credit. Every product you use will have to be expensive. I'm talking about everything - concrete, toys, ceramics, energy, etc. Our products here in Poland will not be competitive to products of other countries, which are not part of the European system, like for example China.'

The limitations imposed on industries are doubly controversial in the light of their still unproven scientific grounds, adds Zasacki: 'We have no scientific proof that man-made emission has really such an impact for climate change. In such a perspective tackling climate change in my opinion is only a political issue and an economic one - that's manipulating the market.'

This is a business issue, confirms Poland's environment minister professor Maciej Nowicki, who said that this debate will decide on the competitiveness of the Polish economy. The minister criticized the basic tenets of the 2007 climate package: 'If the European Union reduces its emissions by 20%, that will mean about 3% of reduction globally. That's why there should be a condition: we will reduce our emissions, if large countries, who emit the largest quantities, reduce theirs. This is what the United States said on the Kyoto Protocol - they are willing to join, if China and India do so too.'

The minister added that it should also be taken into account that Poland reduced CO2 emissions drastically in early 1990s.