30/06/08 - The Prime Minister has just unveiled the biggest reform of our energy policy in decades, setting out the steps that will move Britain into a low-carbon economy.

In a speech to the Low Carbon Economy Summit, Gordon Brown set out our vision for moving Britain into a low-carbon economy by 2050, leading the world in emissions reductions and expanding the British green economy in the process.

Certain facts about energy and climate change are now undisputed in a way that they weren't only a few years ago: Carbon emissions are heating the world. Oil and gas are running out. And something must be done about it NOW.

The government's Climate Change Bill - which is soon to become law - is an important first step. It is the first law anywhere in the world which legally commits the government to reducing our carbon emissions by 2050 - read more about the Bill by clicking HERE. And now we are going further, by taking the steps necessary to achieve this target.

The UK's environmental sector is flourishing - over 400,000 people are employed in 17,000 companies, with an annual turnover of £25 billion. We already lead the world in offshore wind, integrated pollution control, carbon trading and water management.

But just as Britain led the world in the Age of Steam, so again we will lead in the Low Carbon Age. And going green doesn't have to be about tightening our belts and paying green taxes - it makes good business sense. By 2050 the global value of the low carbon energy sector could be as high as three trillion dollars per year, employing 25 million people.

Our goal is simple: We want Britain to take a disproportionate share of these jobs, and lead the world in the green revolution.

Last year we pushed for agreement in Europe for the EU to generate 20% of its total energy from renewables by 2020. Playing our part in this agreement requires us to generate 15% of Britain's energy from renewables. We will continue to push for greater measures in Europe, but we're not waiting around for another agreement before going further. That's why our Renewable Energy Strategy, announced last week, went even further still:

There will be a tenfold increase on our current deployment of renewables, and a 300% increase on our existing plans. We will invest £100 billion over the next twelve years, so that by 2020, renewables will count for over 30% of electricity supply, 14% of heat supply and up to 10% of transport fuels. This alone will save an extra 20 million tonnes of CO2 per year.

This year Britain will have the highest operating offshore wind capacity in the world, with over 400 megawatts. By 2020 we will have installed around 14 gigawatts - that is around 3000 offshore wind turbines meeting 50% of our renewable electricity.

Across all government departments, every policy now has a climate change consideration. Every step, no matter how small, is important to move us towards our goal:

1. Our environmental and economic assessment of the Severn Tidal Barage - which could supply up to 5% of the UK's total energy needs - is well underway
2. We will replace our aging nuclear power stations with new ones - this is absolutely vital if we are to free ourselves of oil dependency
3. We will introduce feed-in tariffs or equivalent incentives to encourage microgeneration and decentralised energy
4. We reached an agreement with retailers to remove old-style lightbulbs from sale starting this year
5. Every new home built in the UK will be zero-carbon by 2016. Every new commercial building will follow by 2019
6. We are increasing the Renewables Obligation - the requirement of all energy companies to source part of their supply from renewables - and extending it to 2040
7. We have streamlined the planning process to make sure that we can implement important projects quickly - the world's climate cannot wait while environmental projects are debated in a committee for years (click HERE to read more)
8. We are pushing for an EU standard for all new cars to emit no more than 100g CO2 per kilometre by 2020
9. In the autumn we will consult on a new Suppliers Obligation, to incentivise energy companies to make profit by decreasing, rather than increasing, demand
10. We are raising the Research Council's energy programme to £300 million over the next three years, and creating upt o £1 billion worth of R&D spending through the new  Energy Technologies Institute

And we are well aware that individual behaviour is one of the greatest forces for change. That is why we are introducing a number of measures to encourage people to save energy, while also helping people to pay their bills. We have agreed with energy companies that by 2011 they will spend a total of £150 million per year to help the most vulnerable customers through special tariffs, rebates and trust funds. Improving energy efficiency can save the average household 20% on the annual energy bill. I have compiled three easy steps which people can follow to reduce bills - just click HERE.

But some countries will continue to rely on oil and gas, threatening to undo the good changes we are making in reducing emissions. That is why we are pioneering carbon capture technology to prove that it can work commercially, thereby preparing the way for its global uptake as a viable technology.

Make no mistake: this will be an immense undertaking. But our future depends on it. It will reduce our dependence on oil-producing nations, lower fuel prices for families and business, make our environment cleaner, and diversify our economy into world-leading technology sectors.

Some proposals may turn out to be unpopular in the short term - some wind farms will need to be built onshore, and renewing our nuclear power capacity is going to be vital. But there is no place for NIMBY-ism in this challenge. Politics is about taking the hard decisions for the long-term, not ducking them according to the polls. The Conservatives have not only voted against many of these essential reforms - they have pledged to overturn many of them if they ever got back into power. On this issue, you cannot put politics before principle.

Much is at stake. But I believe that these proposals are fundamentally important to the long-term properity of our country.

You can read the full text of the Government's proposals, and find out how to have your say in our public consultation, by visiting the DBERR website - click HERE.