AMSTERDAM, Netherlands - The European Union is falling short of its energy efficiency target and needs to invest C50 billion (US$68 billion) in new research and development in the next 10 years, according to a draft EU document.

The document, which was circulating Wednesday among European Commission departments in Brussels for comment, plots a road map for carbon emission reductions of 80 to 95 per cent below 1990 levels by 2050. A final plan is due to be approved and published in March by the commission, the EU's executive.

It says that to reach that goal, road traffic needs to emit less carbon 20 years from now than it did 20 years ago, which governments can promote by tackling congestion and raising fuel prices. Industry, agriculture and new buildings also must pollute less.

By mid-century, the EU should be importing half as much oil and gas as today. The average annual savings over the next 40 years would be C175 billion to C320 billion -- depending on whether other countries join in reducing fossil fuels and help drive down prices. Without any action, it says, fuel imports will double.

The EU plan has importance beyond its 27 member states because the Europeans consider themselves pacesetters in curbing greenhouse gases, which are blamed for global warming. With their cap-and-trade program and firm emissions targets, diplomats repeatedly goad the United States and other industrial countries to follow the EU example.

Less than two years ago the union adopted what it called a 20-20-20 strategy: 20 per cent of energy to be obtained from renewable sources, a 20 per cent increase in energy efficiency, and a 20 per cent reduction in total emissions by 2020. They pledged to raise the overall target to 30 per cent as part of an all-encompassing international climate accord, which has proven elusive.

New calculations say that if the efficiency target is met, emissions reductions would exceed the original target and fall 25 per cent lower than 1990. But efficiency is the one area lagging behind, the paper said.

Energy consumption can be slashed with the help of hybrid or electric vehicles, smart grids that better regulate the use of power, and capturing industrial carbon emissions and storing them underground. "An additional investment in R&D and demonstration of C50 billion over the next 10 years is indispensable," it said.