The knock-on effects of the past recession and less use of expensive fossil fuel such as coal will help Britain report a decline in carbon emissions in 2010.

As per a report from Cambridge Econometrics, fall in energy use will lead to fall in carbon emissions by about 1.5 per cent this year.

But, the report also forecast that Britain will possible meet its first two 5-year carbon budgets, but its third carbon budget, which runs from 2018 to 2022, will exceed limits.

Britain will also not be able to meet European renewable energy target and its aim of a 34 per cent cut in carbon emissions by 2020. Britain has plans to cut carbon emissions by 34 per cent by 2020 from 1990 levels and by 80 per cent by 2050.

However, the report adds that the budget targets can be achieved if the government increases the share of renewable energy in heat and transport.