The government has committed 40 million pounds (60 million euros, 72 million dollars) for research on the technology, known as carbon sequestration, or carbon capture.

The method should be operational within a decade and could eventually prove a major export earner for Britain as other countries begin to adopt climate change-reducing techniques, Energy Minister Malcolm Wicks said.

The theory is that fossil fuel power stations, oil rigs and other energy burners would hold on to waste gases such as carbon dioxode and methane, rather than releasing them into the atmosphere.

Carbon dioxode and methane are among what are known as greenhouse gases, increased concentrations of which in the earth's atmosphere have been blamed by scientists for global warming.

Under the British plan, the captured gases would be pumped underground into spent oil and gas fields.

"Reaching our ambitious target of cutting carbon emissions by 60 percent by 2050 means action now to support emerging technologies that will enable us to burn coal and gas more cleanly," Wicks told BBC radio,

"At the same time, with major expansion of coal-fired power generation expected in China and India, we want to put the UK at the forefront of what could be a valuable new export opportunity."

Carbon capture could reduce emissions from power plants by up to 85 percent, he added.

Tony Juniper, director of environmental group Friends of the Earth, welcomed the initiative but warned there were "many challenges" ahead.

"First of all, are there enough geological deposits that can keep this gas out of the atmosphere for long enough to make a difference? Can we get it there effectively? Can we transport it in a way that is technically feasible?" he told BBC radio.

"And then, of course, what is going to be the cost of implementing this technology?"

British Prime Minister Tony Blair has pledged to make tackling climate change one of the main priorities of next month's summit of the Group of Eight (G8) rich nations' club in Gleneagles, Scotland.

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