The EU today announced ambitious plans to make Europe "the first economy for the low-carbon age" before handing the UK a tough set of climate change targets.

British energy consumption will be slashed by 16 per cent and the use of renewable energy increased more than seven-fold by 2020 if the Government is to meet its share of the EU’s targets.

John Hutton, the Business Secretary, said the Government was committed to hitting the target, but he explained that the final target for the UK will be determined in forthcoming negotiations between ministers on today’s commission proposals.

“Whatever the final outcome, the UK is already exploring 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,” he said.

Mr Hutton said the climate change package demonstrated that the EU was a global leader on the issue: “I want to see it agreed as soon as possible to give business the certainty it needs to plan low carbon investments with confidence.”

The proposals were described by Jose Manuel Barroso, European Commission president, as the most comprehensive plan in the world for tackling air pollution.

He said Europeans wanted "a vision and a plan of action" against climate change. The aim would be a 20% cut in the EU's greenhouse gas emissions by 2020, which could rise to 30% with a global deal.

Mr Barroso said the measures would cost 3 euros (£2.10) a week for every EU citizen.

The European Commission challenged the UK to increase its use of renewable energy by 15% of all energy consumption by 2020, and to cut the country’s greenhouse gas emissions by 16% by the same deadline.

Hilary Benn, Environment Secretary, said the proposals sent a clear signal to the world that Europe was taking decisive action against 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.”

He backed the Commission’s pledge to cut greenhouse gas emissions by 30% by 2020 if the international community does the same.

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