European leaders have reached agreements on climate change, energy efficiency and renewables that will cut greenhouse gas emissions by at least 40% by 2030 compared with a 1990 baseline. It was also agreed to increase the use of renewable energy to 27% in the total energy mix and boost energy efficiency by at least 27%.
The binding decision came after discussions at a summit in Brussels.Observers said that the final deal was a compromise between countries that rely heavily on coal, and those willing to instil greater emissions cuts. Environmental groups welcomed the deal, but said it does not go far enough.
The EU Commissioner for Climate Action, Connie Hedegaard, said she was "very proud" that the leaders "were able to get their act together on this pressing climate challenge".
Ed Davey, the UK's Energy Secretary, described the deal as "a historic moment".
"Europe has sent a clear and firm message to the world that ambitious climate action is needed now," Mr Davey said.
"This morning only five countries in Europe had climate targets post 2020, now 28 countries do.
“It lays down the gauntlet to the world to come forward with ambitious climate targets, reforms EU energy policy so it’s flexible and affordable, and tackles energy security - reducing Europe’s energy import bill for fossil fuels by around €285 billion by 2030.
“It’s good for consumers because we can decarbonise at the lowest possible cost using a diverse mix of technologies.
“And it’s good for business as it provides the certainty they have been calling for to unlock billions in low carbon investment.”
German Chancellor Angela Merkel said: "We made a decisive step forward."
EU officials had said that they wanted the EU to have an "ambitious position" in the run up to the UN climate change conference in Paris in December 2015.
The EU is already on target to cut its CO2 emissions by 20% by 2020, compared with 1990 emission levels.