With the entry into force of the Kyoto Protocol international efforts to combat climate change enter a new phase. The EU has begun reducing its greenhouse gas emissions and now needs to develop its medium and long term strategies for winning the battle against climate change, inside the EU and together with the international community. Several EU Member States have already announced or proposed national mid- and long-term climate targets. This Communication responds to the request of the European Council at its March 2004 meeting for “a cost benefit analysis which takes account both of environmental and competitiveness considerations”, as preparation for a discussion on “medium and longer term emission reduction strategies, including targets”. On the basis of the analysis undertaken by the Commission, it recommends a number of elements which should be included in the EU’s future climate change strategies and proposes dialogue with key partners during 2005 in order to prepare the EU’s position for future international negotiations. It is accompanied by a working document setting out in greater detail the review of scientific evidence and the scenarios which have been analysed to underpin the information presented here.