The European Union is to invest more in research and development to enable IT to help other industries reduce their carbon emissions.

IT lies at the heart of Europe's commitment to meet reduced carbon-emission targets, according to Telecoms Commissioner Viviane Reding.

Reding was speaking at the launch of the latest European Information and Communications Technology Industry Association report.

"I am convinced that ICT has a key role to play in enabling energy efficiency improvements across the whole economy, thus lowering emissions and fighting climate change," she said.

The report sets out the Commission's position on how ICT can help save the planet in the long run, and meet the EU targets ahead of schedule in the short term.

For example, in the construction sector, heating, cooling and lighting of buildings account for 40 per cent of all energy consumed in Europe.

User-friendly ICT-based energy monitoring and optimisation systems can intelligently connect more energy efficient components and accelerate the changes in consumer behaviour, says the report.

The broad adoption of LED lighting could save 30 per cent of today's consumption by 2015 and up to 50 per cent by 2025.

In the energy sector, the report said that potential savings of up to 40 per cent are considered possible in energy distribution and storage.

"Computerised virtual power plants will optimise demand and production by smoothing peaks and facilitating trade between grid operators," said Reding.

Transport and energy-hungry industrial processes can also be improved through ICT, the report claims.

Dematerialisation, described as the conversion of physical products into digital downloads and services, will also play a part.

The ICT industry, which contributes only two per cent of global carbon emissions, must also keep its house in order by developing more low-power devices.

To help achieve these miracles, Reding promised new money, bringing the budget for energy-efficient ICT projects up to €40m, new regulation and new large-scale pilot projects to prove the technologies, especially in conurbations which produce 80 per cent of the world's greenhouse gas emissions.

In terms of regulation, a Strategic Commission Communication on Energy Efficiency through Information and Communication Technologies will be adopted shortly.

"It will serve as a basis for the launching of a consultation and partnership process," she said.