Gordon Brown has put tackling climate change at the heart of his pre-Budget report.
The chancellor told the Commons that there should be a long-term framework for reducing carbon dioxide emissions from homes.
As a result, the government will seek to ensure that within 10 years every new home will be a 'zero carbon home'.
"And to accelerate the building of zero carbon homes, for a time limited period the vast majority of new zero carbon homes will be exempted from stamp duty," Brown said.
There will also be a consultation on "a new facility to undertake energy audits and offer low loans that would in time, because of low energy bills, pay for themselves".
By the end of 2008 the 'Warm front' programme will have insulated 2.7 million homes.
And an extension of the programme will "make it possible for 300,000 pensioner and other households most vulnerable to fuel poverty to have free insulation and central heating".
On transport, air passenger duty will double from February, rising from £5 to £10 for most journeys.
The 20p per litre discount will be extended to the next generation of biodiesel, with the same move available to "all new innovative fuels as they develop".
"I am also consulting prior to a Budget decision on extending the current 40 pence per litre duty discount for biogas and on the level of tax discounts for company cars using high-blend biofuels," Brown told the Commons.
Motorists will also see fuel duty rise from midnight tonight by 1.25p per litre.
