
A higher proportion of tax revenues will come from environmental taxes.
In 2009, EU leaders endorsed two targets for greenhouse gas emissions - 20%, rising to 30% in the event of a global deal on climate change.
That failed to materialise at December's Copenhagen summit.
But the recession has lowered emissions across the continent, making the higher target more easily achievable.
Environment groups have been lobbying governments to move to 30% immediately, to re-stake the EU's claim for global leadership on climate change - a call that the coalition has now endorsed.
Only problem is the conservative-Lib Dem coalition also confirmed there would be a free vote on fox-hunting and that badger culling was back on the agenda for England