Basically, we've put in place a package of measures to get to the 20% target by 2020, but also to extend that to 30% in the case, as we expect, of an international agreement. It covers both climate change action and renewable action, and it's a comprehensive package that allows us to share the effort out between member states. I can come back to how we do that in a minute.
The use of flexible instruments is very important. We're proposing a revision of the legislation underlying the EU ETS. Again, we have looked at the economic analysis.
While it's true that our proposals would have a cost, the benefits by far outweigh the costs. The way we've presented the package, the way we've put it together, is to focus on cost-effectiveness and fair distribution so as to minimize the transition costs. We expect that the impact of our package, cutting emissions by 20% by 2020, will be as low as 0.04% to 0.06% of GDP per year.
In addition to that, we expect very large benefits in terms of fuel efficiency, energy security, and substantial health benefits from reduced air pollution: about €11 billion worth of health benefits—$16 billion Canadian—from taking the measures needed to reduce our emissions by 20% by 2020.
More than that, the package is expected to deliver the kind of structural changes Europe needs to remain competitive. By taking the lead, Europe will be kick-starting the development of a low-carbon economy, a global economy vital to prevent climate change from reaching dangerous levels.
The EU is seriously seeking first-move advantage in a new industrial revolution that will unleash a wave of innovation, job creation, clean energy, and high-efficiency technologies.
Thank you.