UK network operator National Grid today said it planned to cut carbon emissions by 45% by 2020, and called on the government and industry to develop a route map for a low carbon economy.

"Despite the challenging economic conditions, we must not take our eye off the ball in tackling climate change," Chief Executive Steve Holliday said in a statement.

"We need a masterplan, with government, industry and consumer collaboration, to determine the route-map for meeting government targets."

European Union countries aim to source 15 percent of their energy from renewable sources by 2020. In addition, Britain has set a target of reducing carbon emissions by 80% by 2050 from the 1990 level.

In a statement, National Grid said it would launch carbon budgets from April for investment decisions. It would use the £27.60 per tonne shadow price for carbon, set by the government, to determine emissions costs for future design.

The group estimates its emissions will be about 11.5 million tonnes carbon dioxide equivalent for 2009/2010.

National Grid has said it is investing around £3 billion per year in its electricity and gas networks, with three quarters earmarked for Britain. The company said a joint approach was essential to get the right legislative and regulatory frameworks in place.

It was also necessary to ensure investment for connecting new renewable sources and for developing technologies such as biogas production.

While Britain plans to expand wind farms by more than 10 fold to 33 gigawatt, it has yet to develop plans for power grids to the wind farms, which are to be mostly offshore. Some have estimated it would require investment of about 6 billion pounds.

"Electricity is not the full story. Heat and transport must also play their part," Holliday said. "These are all areas where policy is still to be developed and new technology needs to be fostered. That is why we need a masterplan."