BRUSSELS, March 9 (Reuters) -- European Union leaders agreed on Friday on a package of measures aimed at making the bloc the world leader in tackling climate change, including a binding target on the use of renewable fuels, diplomats said.

"Setting national targets will be done with the consent of the member states," one envoy said after the 27 leaders embraced a binding target of 20 percent of renewable sources in EU energy consumption by 2020.

The deal allows flexibility in how each country contributes to the common pan-European goal for use of sources such as solar, wind and hydro-electric power as part of a strategy to cut EU greenhouse gas emissions by at least 20 percent by 2020.

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