THE region's fast-growing energy sector looks set to benefit from extensive European Commission proposals to help combat climate change.

The commission yesterday agreed plans to cut carbon emissions across Europe by 20 per cent - compared with 1990 levels - by 2020 and boost energy from renewable sources to 20 per cent of total energy use.

Its president, Jose Manuel Barroso, told Euro MPs that the European Union was determined to lead the way in reducing global pollution.

The key to success will be the commitment of the 27 EU Governments.

The commission challenged the UK to cut its greenhouse gas emissions by 16 per cent by 2020 and get ten per cent of road transport fuel from biofuels produced in a sustainable way.

Britain must also increase its use of renewable energy more than sevenfold to 15 per cent of all energy consumption by the same deadline.

It currently only gets two per cent of its energy for heat, electricity and transport from renewables - such as wind, wave, tidal, solar and biomass.

The proposals were yesterday welcomed by business leaders and organisations in the North- East, including Lyn Miles, chief executive of Consett-based Romag, a manufacturer of photovoltaic glass that converts the sun's energy into electricity.

She said: "Any company involved in the renewable energy sector would welcome any such initiative by Governments worldwide, not so much because we wish to be dependent on Government support but, more importantly, because it brings to the attention of everybody the importance of renewables.

"Anything that will raise the profile and grow the renewable energy sector, particularly in the North-East, is good news.

The announcement was also welcomed by Northeast Biofuels (NEB), a cluster of companies and organisations committed to the development of the region's biofuels industry.

Its rural affairs spokesman, John Seymour, said: "Companies within the region are embracing the opportunities that are presented by the energy directive from the European Commission."

The commission's proposals will go before Euro MPs and EU environment ministers.