All new offices, shops and other commercial buildings are expected to be zero carbon by 2019, the Chancellor said as he attempted to build on the green agenda.

Public sector buildings including hospitals, schools and town halls are also expected to be zero carbon by 2018. The move follows the decision in 2006 to ensure that new domestic homes are carbon-free by 2016. Mr Darling claimed the decision to make commercial buildings follow suit would reduce carbon dioxide emissions by 75 million tonnes over the next 30 years.

But there were fears that the private sector would not take up the challenge because of higher building costs and environmental groups gave warning that action was needed more quickly.

“We welcome the Government’s ambition to have zero-carbon new public buildings – but the 2018 date is far too late,” said a spokesman for Friends of the Earth. “The Stern review is clear that urgent action is needed now – waiting ten years is not an option.”

Rose-tinted specs fail to offer hope

The obvious justification for Mr Darling’s relatively upbeat scenario is that the outlook is fraught with uncertainty

Background

• Darling's first Budget: the main points

• The Chancellor's speech in full

• Darlings first Budget: the reaction

• Chancellor hits the home budget as his debts soar

• Need to know: Budget 2008

The Chancellor delivers a modest Budget

As so often is the case, virtue, in terms of improving public finances, is not now, but at least a year away

Multimedia

• Video sketch: Matthew Parris and Ann Treneman

• Eco-worrier: should we be pleased?

• Green Central: round-up of the green Budget measures

Related Links

• Campaigners rubbish plastic bags vow

Multimedia

• Red Box: a list of Darling's new enemies

• The winners and losers

• Video: the 'fingers crossed' budget

A task force is to be set up to see how the new private sector target can be achieved. The domestic programme has already run into problems because energy-efficient homes are much more expensive than traditional buildings. This is partly owing to extra insulation, double glazing, energy efficient lighting and condenser boilers. Zero-carbon building materials are also more expensive.

Mr Darling also confirmed that homeowners will be able to go ahead with installing carbon-saving technology such as solar panels without needing planning permission.

Businesses will also be able to set up solar panels, wind turbines and ground-source heat pumps from this year without being immediately liable to an increase in the business rate value of these investments.

Explore Economics

• Autumn Budget 2007

• Budget 2008

• World Economic Forum

• The Times MPC

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