Improving the UK's existing housing stock should be made a priority in order to meet the government's CO2 reduction targets, it has been claimed.

British Gas has stated that only seven per cent of CO2 savings could be made by 2020 if new buildings are constructed with environmentally-friendly features, the Telegraph reports.

The government has pledged to reduce CO2 emissions by 60 per cent by 2050, however.

Making environmental improvements to current housing would have a much more accentuated affect on reducing emissions, the utility claims.

Phil Bentley, managing director at British Gas, commented that installing insulation could be one effective measure to cut CO2.

"For every £3 we spend heating our homes £1 is wasted because of poor insulation," he said

"And whilst strict standards on new build are needed, most of the energy being consumed is in the ageing homes we live in today."

As part of the British Gas Green Streets competition, one family in Scotland was able to reduce its energy consumption by 47 per cent, according to the Scotsman.