The UK today welcomed the European Commission's ambitious proposals for tackling climate change and delivering a low carbon economy in Europe.

The package contains proposals to implement the decisions agreed by EU Heads of State and Government at the 2007 Spring European Council, including a 20 per cent reduction in EU greenhouse gas emissions by 2020, increasing to 30 per cent when there is an international climate agreement; 20 per cent of total EU energy consumption to come from renewables by 2020; and measures to support the development of carbon capture and storage (CCS) including up to twelve CCS demonstration projects.

The proposals put the EU Emissions Trading Scheme (ETS) at the heart of EU climate policy, including establishing an EU-wide central cap on emissions covered by the EU ETS to 2020 and beyond, ensuring both scarcity and certainty, changed from the current system of Member States setting emissions caps for their own economies.

For the UK, the Commission's proposals include:

• A reduction of 16 per cent in UK greenhouse gas emissions from sectors not covered by the EU ETS by 2020 from 2005 levels;
  
• For 15 per cent of the energy consumed in the UK to come from renewable sources by 2020;
  
• For 10 per cent of road transport fuels to come from renewable sources, subject to them being produced in a sustainable way.

Environment Secretary Hilary Benn said that the proposals sent a clear signal to the world that Europe was taking decisive action to fight climate change.

"This plan shows exactly what we are aiming for globally - a comprehensive and effective agreement to tackle climate change, with the carbon market at its heart. With a global deal, the EU will up its commitment to cut greenhouse gas emissions to 30 per cent by 2020.

"Setting a clear long-term downward trajectory for the emissions cap for the EU ETS gives businesses and the market the certainty they've been looking for.

"I support the clear message from the Commission that there should be much more auctioning in the EU ETS. We would like to see increasing minimum levels of auctioning that allow Member States to set higher levels unilaterally. We will consult on this and the rest of the detail of the EU ETS review in the spring."

"More work must be done in a number of areas, including looking closely at the proposed UK contribution from the whole economy, rather than just the non-traded sector. The UK is determined to play its part in full, but we should ensure that there is collective effort from all Member States to play their part in meeting the EU target."

Business Secretary John Hutton outlined the UK's plans to review its strategy to meet the UK share of the EU renewables target:
"The UK remains committed to meeting its share of the EU renewables target which will be decided in the negotiations ahead, and the Commission's proposals are a welcome starting point for that discussion. Whatever the final outcome, the UK is already scoping a vast expansion of wind energy offshore and tidal power on the Severn, and we are already thoroughly reviewing our strategy to drive progress further.

"Other low carbon technologies must be part of the mix too. The Commission's proposals on removing regulatory barriers to Carbon Capture and Storage are vital. Demonstration of this globally significant technology must happen as soon as possible and I hope that the UK's demonstrator plant, expected to be up and running by 2014, can fully participate in EU initiatives on CCS demonstration.
"This package will show the EU's continuing global leadership on climate change. I want to see it agreed as soon as possible to give business the certainty it needs to plan low carbon investments with confidence."

Secretary of State for Transport Ruth Kelly said:
"This package demonstrates a firm commitment that transport must play its full part in tackling climate change as well as supporting sustainable economic growth. Action to encourage sustainable biofuels is one of a range of measures we are taking in the UK to reduce the impact of transport on the environment, backed by record investment in public transport, walking and cycling.
"I welcome the inclusion in the Commission's proposals of sustainability criteria for biofuels. These are a good starting point for negotiation. The UK has been leading the international drive to make sure the biofuels we use come from sustainable sources and we will be pressing to make sure European biofuels policy also includes strong safeguards to maximise greenhouse gas savings and protect the environment."