'Green' Budget targets emissions

But within minutes of delivering his first Budget Mr Darling came under fire from environmentalists who claimed he was tinkering in the margins and had "dropped the ball" on climate change.

Describing tackling global warming as "our greatest obligation to future generations, the Chancellor announced new targets to make all new non-domestic building zero-carbon by 2019.

The pledge comes on top of the existing goal for all homes to have no net carbon emission by 2016, and Mr Darling said it could save 75 million tonnes of carbon dioxide over the next 30 years.

The Government is also aiming for all new public sector buildings to be zero-carbon by 2018. Smart meters will also be rolled out to medium and large companies over the next five years in a bid to encourage them to save energy, he said.

On the domestic front, there will be £26 million for the Green Homes Service next year to help people cut carbon and fuel bills, he said.

And the Carbon Emissions Reduction Targets introduced next month will require energy companies to improve efficiency in their customers' properties, with cavity wall insulation for nearly three million homes along with loft insulation, energy efficient appliances and light bulbs.

On transport new bands of vehicle excise duty from 2009 will reward the drivers of the cleanest cars and the new per-plane tax, to come into effect in November 2009, will increase by 10% in the second year of operation, he said.

Environment Secretary Hilary Benn said: "This budget demonstrates how seriously the Government takes the environment, with clear incentives for action, for example the new vehicle excise duty bands and charges for plastic bags, and measures to reduce emissions, for example zero carbon new commercial buildings."

But environmentalists said Mr Darling's decision to delay a 2p rise on fuel duty until October undermined his green credentials. Greenpeace executive director John Sauven said: "Darling's safe pair of hands have dropped the ball on climate change. Suspending the promised increase in fuel duty has fatally undermined his boast that this is a green budget, and tinkering with taxes on planes and cars isn't going to stop new runways and roads being built."