The government is set to miss its target on reducing carbon dioxide emissions "by a large margin", according to experts.

A report published by Cambridge Econometrics on Monday warned that current policies would not meet the goal of a 20 per cent cut in the UK's emissions of the global warming gases by 2010.

The study singled out the transport and household sectors as key sources of pollution.

They currently account for around 40 per cent of the UK’s emissions and are expected to grow.

Ministers have set out a range of measures in their climate change programme, and are also backing the European Union's emissions trading scheme.

But ministers will be pleased to note that the report said the UK was "expected easily to meet the Kyoto target for greenhouse gases", which requires a 12.5 per cent reduction between the 1990 baseline and 2008-12.

Professor Paul Ekins of the Policy Studies Institute, co-author of the report, said ministers would have to prove they are "serious about climate change".

"There is welcome progress with renewables; the climate change levy package is controlling emissions from industry; and the EU Emissions Trading Scheme seems set to do the same for power generation," he said.

"But the 20 per cent carbon reduction objective is not likely to be met, or even only just missed, unless further policy measures get to grips with transport and household emissions."

Professor Ekin added that following the government's spending review and its renewed commitment to creating a low carbon economy, "the signals facing decision makers are flashing at amber".