The global recession provides a window of opportunity to curb climate change and build a low-carbon future, says the International Energy Agency (IEA).
It calculates that global greenhouse gas emissions will fall by 3% this year - an increase on previous estimates.
If governments take this opportunity to invest in clean technology, the global temperature rise can be kept below the G8 goal of 2C (3.6F), the agency says.
The findings were released at UN climate talks in Bangkok.
"The message is simple and stark: if the world continues on the basis of today's energy and climate policies, the consequences of climate change will be severe," said IEA executive director Nobuo Tanaka.
"Energy is at the heart of the problem - and so must form the core of the solution."
The recession is likely to mean emissions being 3% lower this year than last - and it will have a longer term impact, the IEA says, with emissions in 2020 projected to be 5% less than they would have been without an economic dip.
The biggest carbon cuts will come from improving energy efficiency, it says. -bbc
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