The commission is aiming for a new "industrial revolution" leading to a low-carbon economy. It is based on three pillars:

A true internal energy market

• Separating energy production from energy distribution by boosting competition and curbing the power of Europe's energy giants

• Strengthening independent regulatory control of the energy sector

Accelerating the shift to low-carbon energy

• At least 20% of all EU energy should come from renewable sources by 2020 and 10% of vehicle fuel from biofuels, and these targets should be made binding for the first time

• The EU should also increase by at least 50% its annual spending on energy research for the next seven years

Energy efficiency

• The commission reiterates the objective of boosting the efficiency of energy use by 20% by 2020

• The commission proposes that the use of fuel-efficient vehicles is accelerated; tougher standards and better labelling on appliances; improved energy performance of the EU's existing buildings and improved efficiency of heat and electricity generation, transmission and distribution

• The commission also proposes a new international agreement on energy efficiency, based on a 30% cut in greenhouse gas emissions by all developed nations by 2020.