The deal includes also includes plans to boost the use of renewable energy to 27% in the total energy mix and increase energy efficiency to at least 27%.
This is great news for the Liberal Democrats in government who have worked hard to keep the environment at the top of the agenda. Lib Dem Energy and Climate Change Secretary, Ed Davey, has been pushing for Europe to make an ambitious deal to tackle climate change.
Commenting on the good news Ed Davey said: "This is a historic moment. Europe has sent a clear and firm message to the world that ambitious climate action is needed now. True to our word, we have delivered a highly ambitious EU climate target while also significantly strengthening Europe's energy security by making us less reliant on imported energy. This morning only five countries in Europe had climate targets post 2020, now 28 Countries do.
"The UK has been leading the climate debate pushing for an ambitious deal in Europe and by building alliances and working constructively with our European partners, we've agreed a package of measures that meet all the UK's top priorities.
"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."