The Globe and Mail reports in its Wednesday edition that Europe has retreated from a plan to penalize Alberta oil sands crude under new fuel regulations. The Globe's Shawn McCarthy and Eric Reguly write that after sustained lobbying by the federal and Alberta governments, the European Commission released a proposal Tuesday that would require petroleum marketers in the 28-nation European Union to cut the carbon-intensity of their fuels, but would not target the oil sands with a designation as the dirtiest crude. The Canadian government applauded the move, but was reluctant to declare victory until member states vote on the measure at a date still to be determined. The European decision came as Prime Minister Stephen Harper on Tuesday faced scathing criticisms of his government's climate policy by a federal auditor. Premier Jim Prentice says the decision is "positive news for Alberta, and for all of Canada." Mr. Prentice concedes the province has to do a better job addressing environmental issues in the face of opposition to planned developments such as pipelines that threaten to limit market access for oil producers. He says today's energy producers need also to be leaders in the environment.