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Government and business must work together to tackle carbon dioxide (CO2) emissions, an environment minister said today.

Phil Woolas said steps must be taken to help the environment that do not jeopardise prosperity.

His comments follow the publication of a consultation on measures to simplify the regulations businesses face in reducing CO2 emissions.

Mr Woolas said the consultation would make sure the UK gets "the biggest cuts in CO2 for the money spent" and has come in response to requests from businesses who want to cut emissions but find existing regulations complex and confusing.

The Department for Environment, Food and Rural Affairs (Defra) will look at a new package of measures to cut duplication and unduly complex bureaucracy and how to cut costs for businesses while making it easier for them to cut emissions.

Reducing CO2 emissions is key to limiting climate change and was one of the main issues debated at the UN talks on global warming in Bali.

"Last week in Bali, we set a clear agenda for negotiating a new global agreement to fight climate change," Mr Woolas said.

"We must make the most cost-effective emissions cuts, and we must prove to the world that fighting climate change is compatible with economic growth."

A report issued by government economists at the same time as the consultation launch said that the government must do its part for the environment by taking greater account of the carbon impact of transport, construction and infrastructure projects.