Parliament President Hans-Gert Poettering said the complicated laws would be in place "before the European elections in 2009," the EU Observer reported.

The pledge came as several nations, including Germany, the Czech Republic, Poland, Romania and Slovakia, said they preferred electrical companies to be gradually folded into compliance with carbon emissions laws.

The countries have argued that pushing too fast would upset their nation's economies, the report said.

European states agreed in 2007 to cut emissions by 20 percent by 2020, but have not decided how to accomplish their goal. Buying carbon dioxide permits at auctions is one of the European Commission's key proposals, the report said.

Britain has also proposed a tax on goods -- such light bulbs, appliances and vehicles -- that receive poor environmental ratings. The idea hasn't much support. Commission president Jose Manuel Barroso said, "anything on taxes requires unanimity."

German Chancellor Angela Merkel said countries should not be punished for producing large cars.

But British Prime Minister Gordon Brown said "taxing incentives can be a powerful lever for change."