By Darren Ennis

BRUSSELS (Reuters) - The European Parliament on Wednesday broadly backed ambitious plans by the European Commission to lead the fight against climate change, but the assembly's Greens said the proposals didn't go far enough.

The landmark package, which sets binding targets to cut greenhouse gas emissions by one-fifth and compels states to produce one-fifth of all power from renewable sources by 2020, requires the backing of both EU lawmakers and 27 governments before entering into force.

Despite some skepticism from the Greens, parliament looks set to quickly endorse the plans after the assembly's three largest political groupings indicated satisfaction.

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The largest center-right European Peoples Party -- home to the parties of German Chancellor Angela Merkel and French President Nicolas Sarkozy -- described the plan as "balanced."

Italian Socialist Guido Sacconi, head of the parliament's climate change committee, said the presentation by Commission President Jose Manuel Barroso "reflects the overall views expressed by this parliament."

Liberals' environment spokesman Chris Davies said: "I am glad the EU is taking the lead in turning aspirations into practical policies. I believe this is long overdue but I recognize the difference it will make."

SERIOUS REGRET

But the Greens said the package of measures announced were a "serious source of regret" and want the Commission to increase its CO2 reduction target from 20 percent to 30 percent.

"Member States have committed to a 30 percent greenhouse gas reduction assuming an international agreement is reached," Luxembourg Green MEP Claude Turmes said.

"By setting the bar lower from the outset, the EU is negatively prejudging the outcome of international climate negotiations and sending the wrong signal to the rest of world."

Most groups agreed on the need for a quick deal to be reached between the assembly's negotiators and EU governments if they wanted to be the kingmakers in any global climate deal for industrialized nations want to clinch by the end of 2009.

Parliament has the added pressure of fresh European elections in 2009.

"It won't be easy in the time we have. I would like to see the setting up of a special group with the member states on this so we can adopt soon as possible, We must stop rowing over competences," said Sacconi, who will lead the assembly's negotiations.

But despite the optimism within Brussels to achieve a deal before a make or break meeting of UN climate change negotiators in Copenhagen at the end of next year, MEPs and EU governments can expect tough talks and lobbying by industry and NGOs.

"We know there will be a lot of proposals to weaken and water down the proposals but we are basing ourselves on the principle that those who shout loudest won't necessarily get their way," EPP Belgian MEP Marianne Thyssen said.

(Editing by Gerard Wynn)