Alistair Darling has introduced a range of measures to encourage more environmentally friendly behaviour.
In his annual Budget on Wednesday, the chancellor committed the government to raising tax on fuel but said he would delay the move as prices have risen so steeply in recent months.
"For environmental reasons we will increase fuel duty by 0.5 pence per litre in real terms from 2010," he told the Commons.
But he said he would postpone the two pence fuel duty rise, scheduled for April, until October "to support the economy now and help business and families".
Darling announced plans for a zero rate of car tax in the first year for new, low emission cars but a higher first year rate on the most polluting cars.
The chancellor also confirmed that the government was poised to impose charges on the use of plastic carrier bags unless supermarkets make "sufficient" progress on a voluntary basis.
He said legislation would come into force in 2009 which could lead to around 12 billion fewer plastic bags in circulation.
"Given the damage that single-use carrier bags inflict on the environment, we want to be able to take action. We will introduce legislation to impose a charge on them if we have not seen sufficient progress on a voluntary basis," Darling told MPs.
"Legislation would come into force in 2009 and based on other countries' experience, it could lead to a 90 per cent reduction, with around 12 billion fewer plastic bags in circulation.
"The money raised should go to environmental charities.
He also said he was going to launch an "ambitious household emissions reduction programme" next month.
"I can announce £26m funding next year for a green homes service to help people cut their carbon emissions and their fuel bills," the chancellor said.
"We will roll out smart meters to medium and large companies over the next five years, providing greater incentives to reduce the amount of energy they consume.
"We already have a target to make new homes zero carbon from 2016. I believe that we can go further.
"And I can announce today that new non-domestic buildings will become zero-carbon from 2019," he added.
