The move was one of a series of environmental measures unveiled by the chancellor in a short Spring Statement as he sought to address one of the major concerns of young people ahead of a second school climate strike later this week.
The Treasury also announced the protection of all the waters around Ascension Island in the Atlantic, where no fishing will be allowed.
Mr Hammond outlined a call for evidence on whether travel providers should be required to offer “genuine carbon offsets” for their customers to reduce the pollution from their journeys, and proposals to boost green gas in the grid.
Along with measures on climate change, Mr Hammond also announced that the government would mandate “biodiversity net gain” for developments in England to ensure new housing and infrastructure does not hit wildlife.
A comprehensive global review of the link between biodiversity and economic growth, to be led by Professor Sir Partha Dasgupta, emeritus professor of economics at Cambridge, will also be carried out as part of efforts to stem declines in wildlife.
Campaign group 10:10 Climate Action’s director Max Wakefield backed the move to end fossil fuel heating in new homes from 2025.
He said: “All our homes and buildings must be made efficient, affordable and zero-carbon within the next two decades to address the climate crisis. Ending the scandal of poor quality new homes is a no-brainer that’s good for everyone.”
Mel Evans, a senior campaigner at Greenpeace UK, said the plan to end fossil fuels in new homes “is vital” and welcomed the measures to protect wildlife.
But she warned that tackling the climate “emergency” required much bigger thinking.
Ms Evans added that “issues like the shoddy state of our existing housing stock and rapid adoption of electric vehicles require serious money behind serious policies” – such as banning new petrol and diesel cars and vans by 2030.
Dave Timms, from Friends of the Earth, said: “The nation’s children are calling out for tough action to cut emissions; Mr Hammond must listen harder to the lesson they’re teaching him.”
He added: “The chancellor should have announced a massive programme of investment in home insulation and public transport, instead of pushing the false solution of carbon off-setting for aviation.”
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