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EU leaders have reached a landmark deal to cut greenhouse emissions by 40% by 2030, compared with 1990 levels, the BBC reported.

The binding decision came after heated discussions at a summit in Brussels, as some members had argued that their varied interests should be protected.

Correspondents say it could make the EU a leader again in climate policy.

The bloc also agreed to boost the use of renewable energy to 27% in the total energy mix and increase energy efficiency to at least 27%.

There were deep divisions within the EU on emissions cuts.

Poland, which is heavily reliant on coal, fears that the costs of decarbonising its economy will slow business growth. Its concerns at the summit were echoed by other central and east European members.

The President of the European Council, Herman Van Rompuy, said afterwards that some poorer EU members would get help - including additional funds - in reaching the agreed targets.

The UK also had opposed nationally binding targets for renewables - mainly wind, solar and hydroelectric power. The UK is also embracing shale gas and nuclear as alternatives to the current over-reliance on oil and gas imports.

The EU Commissioner for Climate Action, Connie Hedegaard, said she was "very proud" that the leaders "were able to get their act together on this pressing climate challenge".

Meanwhile, German Chancellor Angela Merkel said: "We made a decisive step forward."