Climate change targets will push up energy prices

Household electricity bills will rise by a quarter over the next decade to pay for sharp reductions in greenhouse gas emissions, the Government's climate change advisor has warned.

Lord Turner recommended the UK reduce output of carbon dioxide and other gases linked to global warming by more than a third in the next 12 years.

He admitted the cuts will be tough, shrinking the economy by one per cent by 2020 and demanding big changes in consumer behaviour.

The biggest impact will be on energy prices which are expected to rise by 25 per cent for the average family, pushing 1.7 million people into fuel poverty.

Britons will also notice a change in everyday life. It is estimated 40 per cent of cars will be plug-in hybrids or electric, smart meters that ensure more efficient use of electricity will be installed in every home and the cost of "carbon heavy" goods and services that use a lot of energy are likely to go up.

The key points

• Power

+ Renewables will have to generate at least a third of electricity, with the majority of growth in the short term expected in onshore and offshore wind.

+ Nuclear will form part of the mix, with the possibility of new stations being built in the future.

+ Coal will continue to be used but will only be viable in the long term if technology is developed to store the emissions underground.

• Transport

+ Cost of flights expected to go up as airlines face penalities for producing emissions.

+ Increased use of public transport through Government policy to cut carbon.

+ At least 40 per cent of cars will be hybrid plug-ins or completely electric as taxes increase on polluting cars and new technologies come online.

• Agriculture

+ Increased use of feed additives that increase productivity of cattle but decrease methane produced.

+ Reduced use of fertiliser by using organic alternatives or different plants.

+ More energy efficient machinery for example hybrid tractors.

• Consumer

+ People will be expected to eat less “carbon intensive” meats like beef and lamb.

+ Carbon heavy products such as vegetables transported from abroad will increase in price with energy prices.

+ People will be expected to turn off lights and cut down on air conditioning or heating as electricity becomes more expensive.

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