The EU has agreed an ambitious climate change policy that will cut CO2 emissions, boost energy efficiency and significantly increase the use of renewable energy, writes Jamie Smythin Brussels.
It is also likely to phase out the type of filament lightbulbs used in most European and Irish households by 2009 in favour of new energy efficient bulbs.
At a summit in Brussels EU leaders heralded the "historic" agreement, which will force states to cut emissions by an average of 20 per cent by 2020. They must also ensure 10 per cent of all fuel used in cars and lorries are biofuels and make renewable energies - such as wind power - account for 20 per cent of Europe's energy mix by the same date.
German chancellor, Angela Merkel, who was credited with steering through a deal on the controversial package of measures, said the binding targets were required to avoid "what could well be a human calamity".
European Commission president Jose Manuel Barroso said the deal could encourage other industrialised and developing nations to sign up to a global deal on emissions.
"We can say to the rest of the world, Europe is taking the lead. You should join us fighting climate change," he added.
Dr Merkel will present the EU plan to world leaders at the G8 in June in the hope that big polluters such as the US, China and India will agree to reduce emissions. If they do sign up to an agreement, the EU has pledged to cut emissions by 30 per cent by 2020.
Environmental groups welcomed the agreement. Greenpeace said it was the "biggest such decision since the adoption of the Kyoto Protocol". Taoiseach Bertie Ahern also welcomed the deal and its proposal to phase out the use of filament lightbulbs by 2009.
"We have been looking at what the Australians have been doing and we think it is a very interesting initiative," said Mr Ahern referring to Australia's decision to phase out filament bulbs within three years.
However, the lobby group Business Europe warned the targets on boosting renewable energy could push up prices.
The 20 per cent target for green energy had presented the biggest obstacle to a deal at the summit with several states describing them as "unrealistic".