Europe is entering a new energy landscape. Gas and oil prices have nearly doubled in the last two years. Europe's import dependency is forecast to rise to 70 percent by 2030, as our hydrocarbon reserves dwindle and demand rises, with implications for our energy security. Our infrastructure must improve; one trillion euros are needed over the next 20 years to meet expected energy demand and replace aging infrastructure. And our climate is changing because of global warming. These challenges are common to all European citizens and countries. They require a common European response. The European Union is well placed to act.

We have the buying power that comes from being the world's second largest consumer of energy. We are one of the most energy-efficient continents. We are global leaders in new and renewable forms of energy, the development of low-carbon technologies and demand management. And yet Europe's approach to energy in the past has been disjointed, failing to connect different policies and different countries. That must change. That is why the European Commission is publishing a Green Paper today on developing a coherent European energy policy. Our proposed aim is sustainable, competitive and secure energy.

If the countries of the European Union can take a common approach Europe can lead the global search for energy solutions. What do we propose? *

Unity. The European Union needs to speak with a common voice. We must use the size of our market and the range of our instruments to manage our energy dependency, diversify our energy supplies and build global support for tackling the new energy challenges. A new partnership with our neighboring suppliers, including Russia, is essential. We must capitalize on the mutual interest of Europe and its main neighboring energy suppliers in secure, open and growing energy markets. And we must intensify our cooperation with our other main partners in the Middle East, Asia and America.

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Integration. We must create a truly single European electricity and gas market. Open markets benefit consumers. They create the long- term platform essential for investment. They provide the correct, pan-European context for the current mergers. Europe prospers in energy, as in other areas, when it lowers barriers, not raises them. *

Solidarity. With integration should come solidarity. Europe must respond better to fluctuations in energy markets, as well as rethink its approach to emergency oil and gas stocks. *

Sustainability. We must accelerate the transition to a low- carbon economy, using both new energies and existing ones. Europe needs to set the framework for different low-carbon energies to thrive. For some, that might mean wind power, for some, solar power and for others, clean coal. Some member states are considering the further development of nuclear power. We do not have the luxury of promoting one energy source to the exclusion of others. We must be serious about our commitment to renewable and low-carbon energies. They cannot fully replace hydrocarbons. But they can, in the case of biofuels, be literally blended with them.

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Efficiency. We must change not just energy supply but energy demand. There is considerable scope to use energy more efficiently. This is not about turning the heat down. It is about developing technologies and habits to change Europe's energy model. We should continue to develop efficiency standards for the heavy consumers of energy, such as transport and buildings. *

Innovation. Europe is at the leading edge of developing low- carbon technologies. We must stay there. The environmental benefits are enormous; so are the business opportunities, with a booming international market for energy-efficient and low-carbon technologies. A European Institute of Technology could help to ensure Europe stays at the top of the innovation league. Underpinning these six priorities are two crucial concepts to help Europe. The first is diversity of energy source, of country of origin, of transit. We have seen how important this is for gas. The second is urgency. In some areas, we are starting from a low base.

Some of the new energies will take years to come on line. But that is an argument for immediate action, not for delay. Europe cannot afford to wait. The Green Paper on a European Energy Policy will help the EU lay the foundations for sustainable, competitive and secure energy. The world is entering a new energy era. With a common, coherent energy policy, Europe can embrace this era with confidence.

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Jose Manuel Barroso is president of the European Commission. Andris Piebalgs is European Commissioner for Energy.

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