Legislation setting a target for Australia to derive 20 per cent of its energy needs from renewable sources by 2020 was passed in the country’s Senate on Wednesday.

The renewable energy target bill had been split from the government’s more ambitious emissions trading scheme legislation, which was rejected by the Senate – the country’s upper house – last week. However, it was only approved after opposition parties won concessions for energy intensive industries, setting the scene for a similar round of horse trading when the emissions trading legislation goes back to the Senate later this year.