Housing Minister Margaret Beckett today set out the Government's proposals for making all new homes zero carbon from 2016.

More than 25 per cent of the UK's carbon emissions are produced by our housing, and with the Government committed to reducing carbon emissions by 80 per cent by 2050, both existing and new homes must become more carbon efficient.

The Government has already set out its plans to make all new homes zero carbon by 2016. The consultation process being launched today will enable the detailed requirements to be set.

Today's consultation proposes a system that both meets our green objectives and recognises the difficult economic conditions facing the housing industry. This includes:

• Requiring a greatly increased level of energy efficiency in the fabric of new homes.
• Setting a minimum level of carbon reduction that developers must achieve on the site of the housing development, such as through improved insulation, or providing onsite renewable energy.
• Requiring developers to tackle the remaining carbon emissions of the new homes, by choosing measures from a list of "allowable solutions", such as providing energy efficient appliances with the home or exporting low and zero carbon heat and cooling to surrounding developments.
• Setting a limit on the amount expected to be spent on these allowable solutions, to provide the house-building industry certainty over maximum costs of the policy.
• Reviewing the list of allowable solutions in 2012 to ensure they will be sufficiently available within the cost limit that has been set and to check whether the proposed list of allowable solutions needs to be updated.

Housing Minister Margaret Beckett said: "Climate change is one of the biggest challenges facing the world, and introducing zero carbon homes is an important part of our plans to tackle this, as well as further action to tackle emissions from the existing housing stock.

"I am absolutely committed to our 2016 target, and this demanding goal is already spurring action here and abroad.

"With the consultation process we are launching today, we are confident we will be able to achieve our ambitions while giving the industry flexibility for how they get there."

Welcoming publication of the consultation, UK Green Building Council Chief Executive Paul King said: "The science on climate change tells us action is even more urgent than it was two years ago when the zero carbon target was first set.

"So Government should be congratulated for sticking by the commitment that all new homes will be zero carbon from 2016.

"UK-GBC has some strong views about what should and shouldn't be allowed to contribute to the definition of a zero carbon home. But as our task group report showed earlier in the year, these are very complex issues and there will be a lively debate over the coming months.

"The important thing is that, by the end of the process, we have an approach which is clear, provides certainty to all parties and retains the original environmental ambition underpinning it."

The Zero Carbon Hub's Chief Executive Neil Jefferson said: "Publication of the consultation is a crucial step in moving beyond the high level policy commitment that was made last year to delivering zero carbon homes on the ground.

"We look forward to working with Communities and Local Government and with industry to familiarise industry with Government's proposals and to help industry feed back its views on the consultation to Government."

NHBC Chief Executive, Imtiaz Farookhi said: "This 'fabric first' approach is a positive step in the right direction and allows for the flexibility essential to make this agenda happen.

"We are at a cross roads on the journey to zero carbon and this is arguably the most significant policy decision for decades. It is therefore critical that we get it right and agree a workable definition. Ultimately this is about homes that people have to live in and there needs to be a full debate around the issues.

"I strongly urge the industry, despite the dire market conditions, to put its weight behind the debate and respond fully to the consultation. It is particularly important for smaller builders, for whom the challenge is even greater.

"Two years have already elapsed to get us to this point, which only goes to emphasise the complexity and difficulty of the issues involved. Once a conclusion on the definition has been reached there is an enormous amount of work to be done to define the solutions and to do that by 2016 will be extremely demanding."

Zero carbon status is measured against the annual emissions from heating, ventilation, hot water, fixed lighting, and the expected use of appliances.

The consultation now gives an opportunity for all groups to have their say on the proposed structure and further details, including the minimum level of carbon emissions that are reduced by onsite means and the list of allowable solutions.

The consultation runs until March 18 2009.