The Ulster Farmers Union says the temperate climate makes Northern Ireland a good place to develop renewable energy and tackle global warming - but the Government needs to play its part.

The comments come after the European Union agreed a commitment to use biofuel in 10% of road transport fuels by 2020. The European Commission is also pursuing a target of 20% of renewables in overall consumption by 2020, although green campaigners have expressed disappointment that this has fallen from a previously mooted target of 30%.

UFU Rural Enterprise Policy chairman Michael Harnett said: "The farming industry has potential to contribute to the economy and the challenge of climate change through alternative land uses.

"Renewable energy crops and other alternative land uses have the potential to be an exciting option for the farming industry, bringing sustainability to the rural economy and helping society to meet its environmental obligations."

But the UFU said a proactive approach from Government is needed to harness the potential in Northern Ireland for land-based renewable energy.

"In 2006 the then Secretary of State for Northern Ireland made a major funding and policy announcement outlining Government's objective to make Northern Ireland a lead region in renewable energy. Unfortunately this has not materialised," Mr Harnett said.

"This latest EU agreement offers us a second chance to kick-start a successful renewable energy sector within the local farming and rural economy."

Mr Harnett said what is needed are policies that give Ulster growers an equal chance compared with growers in other EU member states.

"For example, farmers in the Republic of Ireland enjoy tax incentives on the production of biofuels and a more favourable financial top-up on the EU Energy Crops Scheme," he said.

"This is not the case in Northern Ireland and damages our hopes of creating a sustainable supply of renewable energy off farms.

"There are also practical issues such as the very high connection charges which are currently in place for farmers who are seeking to generate electricity on farm to supply to the national grid. Prices paid for electricity generated from on-farm renewable sources are also much lower here than in other parts of Europe."