British insurers have welcomed Prime Minister Tony Blair’s introduction of a bill to reduce greenhouse emissions and tackle climate change.

Mr Blair says the Climate Change Bill calls for a 60% reduction in greenhouse gas emissions by 2050. It will also create an independent body – the Carbon Committee – to help the UK reduce emissions.

The Association of British Insurers has welcomed the proposal, with Head of Property Insurance Jane Milne saying climate change is one of the biggest challenges that Britain, and the world, faces.

“We support the Government’s plans… but firm action is needed too.”

Ms Milne says climate change means, among other things, an increased risk of flooding, and managing the risk will allow flood insurance to remain widely available.

“Urgent action is needed here. We believe that government spending on flood defences needs to increase by 10% a year to £750 million ($1.84 billion) by 2011 to deal with that risk.”