EU urged to cut 'green' goods tax

Gordon Brown has renewed calls for the European Union to reduce duties on environmentally friendly goods, ahead of a meeting of EU leaders in Brussels.

He said he hoped his proposal to reduce VAT on items like low-energy light bulbs and fridges would be considered.

Danilo Turk, the president of Slovenia which holds the rotating EU presidency, said the EU needed to be innovative.

The EU Council will also be discussing global poverty, climate change and energy market liberalisation.

Mr Brown wants to see greater flexibility on VAT rates to encourage energy efficiency.

Speaking at a press conference with Mr Turk earlier, Mr Brown said he had submitted a proposal that would address how to encourage people to use environmentally-friendly products.

"There is a debate about how we fund products that make advances in being environmentally friendly with low carbon emissions," he said.

"There are many items that are on sale at the moment where if the VAT rate was reduced we could encourage the environmentally-friendly products and the environmentally-friendly project.

"That goes for a range of products from light bulbs to household materials, to fridges."

Mr Turk added: "The time has come for innovation, both in terms of new technology and leadership from the European Union."

BBC Europe correspondent Jonny Dymond said any reduction in VAT would need the agreement of all EU member states.

Mr Brown's proposal comes as EU leaders restate their commitment to deep cuts in greenhouse gas emissions. They will also receive a report predicting mass migration from Africa and the Middle East to Europe from the year 2020, because of climate change.