Planes not passengers to be taxed

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Alistair Darling said climate change was one of the two "great challenges for this generation", along with combating world poverty.

But environmental groups said the measures in the pre-budget report and comprehensive spending review fell short of what was needed to address global warming.

The Chancellor said the Department for Environment, Food and Rural Affairs (Defra) will receive almost £4 billion extra over the next three years to help fight climate change and protect the countryside. The cash includes £800 million a year by 2010 for flood defences.

Mr Darling said it was right that air travel, which contributes 6.3% of the UK's carbon emissions, should be part of the European Union emissions trading scheme. And he announced that from November 2009 taxes on air travel would be per plane, rather than per passenger.

"I propose that aviation makes a greater contribution in respect of its environmental impact and for this to be as environmentally effective as possible from 2009 I intend to levy the duty not on individual passengers but on flights."

Air passenger duty levels will be frozen in the run up to the change.

The Chancellor also announced a £1.2 billion "environmental transformation fund" over the next three years to invest in new energy technology in the UK and reduce poverty in the poorest countries through environmental protection and helping combat climate change. At least £370 million will be spent on projects in the UK through the fund.

But Greenpeace executive director John Sauven said the cash was "completely inadequate". He went on: "A tax that penalises airlines for flying half empty planes makes a lot of sense, but the Government's support for the unrestrained expansion of UK airports seriously undermines its credibility."

And Friends of the Earth director Tony Juniper said the Chancellor had missed a "golden opportunity" to encourage people to become more environmentally friendly.