Scotland's first national target to improve energy efficiency was unveiled today.

Local councils are also to be given £10 million in grants to offer free insulation measures and provide energy saving advice to up to 100,000 households.

Scotland's Energy Efficiency Action Plan includes a headline target to reduce total energy consumption by 12 per cent by 2020.

Together with existing commitments, including the target to generate 80 per cent of Scottish electricity consumption levels from renewable energy within the next decade, the energy efficiency target will be key to delivering Scotland's world-leading carbon-reduction target of a 42 per cent cut in CO2 by 2020.

By improving household energy efficiency, Scots could save an estimated £2 billion by 2020 from smaller energy bills, while investment in energy efficiency over that period could directly support around 10,000 jobs in Scotland.

First Minister Alex Salmond outlined the details of the plan as he chaired the latest meeting of the Energy Advisory Board in Edinburgh.

Mr Salmond said: "The £10 million of grants I'm announcing today will help local authorities provide advice and offer free insulation and other energy saving measures. It will help thousands of families to cut their fuel bills by an average of £50 a year and builds on previous investments, including the £15 million discounted and free insulation scheme announced earlier this month. "Not only will these initiatives reduce families' bills and their carbon footprint, but they will also create and support employment for insulation manufacturers, installers and energy advisors.

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"The public sector must also do more to ensure their buildings are becoming more energy efficient. The Scottish Government will take a lead by committing to publishing details of the Scottish Government's weekly energy consumption in our headquarters by Spring 2011."

The Action Plan sets out steps to help achieve the new efficiency target, including:

* Encouraging behaviour change and delivering consistent, accessible advice

* Supporting households to reduce domestic energy bills

* Improving energy efficiency across housing stock

* Creating a single energy and resource efficiency service for Scottish businesses

* Ensuring public sector leads the way with exemplary energy performance and reporting - including, for example, publishing weekly energy consumption in Scottish Government headquarters

* Creating an energy and fuel efficient transport system

* Ensuring training and education systems are equipped to enable as many people as possible to benefit from business and employment opportunities in energy efficiency.

Ian Marchant, Convener of Scotland's 2020 Climate Group, commented: "Energy efficiency needs a major raising of our collective game, so I strongly welcome the Action Plan. Scotland is targeting both economic growth and recovery, while seeking to significantly reduce energy consumption - this 'decoupling' will be a first for a modern economy.

"There are major economic opportunities for business and jobs in Scotland from energy efficiency services and products. But we have to remember two things. First, energy efficiency is about heat and transport, as well as power. Second, plans are good but delivery is what matters and that is the test that we must all now pass."

(GK)