Other eco-friendly proposals -- aimed at highlighting the British government's green credentials -- included higher taxation on vehicles that pollute more and a 50.0-million-pound (72.3-million-euro, 87.4 million-dollar) fund to help homes and companies generate renewable energy.

"With 98 percent of emissions occurring outside Britain, climate change is a global issue which demands global solutions," Brown said, adding that his government's first ambition was a long-term international framework.

Britain's chancellor was to put forward his World Bank scheme in April.

"The developed world has a responsibility to help developing economies meet their energy needs in an environmentally sustainable way," he told lawmakers.

"So at the World Bank meetings in April... I will propose a World Bank facility -- a 20 billion-dollar fund for developing economies to invest in alternative sources of energy and greater energy efficiency."

The World Bank and the International Monetary Fund are due to hold a two-day spring meeting in Washington on April 22 and 23 in Washington.

Setting his sights on global warming, Brown said that the government's climate change levy -- a tax on industrial and commercial energy users to reduce emissions of greenhouse gases -- would increase next year.

"Having kept the climate change levy at its original level for its first five years, it is my intention that for 2007 we index the climate change levy in line with inflation," Brown added.

The chancellor also revealed that the government wanted to be help combat climate change with new technologies -- and to that end would set up a research body with the assistance of major global energy companies.

"Britain has a unique opportunity to lead the development of all low carbon technologies in order to meet the challenge of climate change," Brown said.

"After discussions with some of the world's biggest energy companies, they have agreed to work in partnership to create, for Britain, a new energy and environmental research institute."

Meanwhile, vehicle taxation would be overhauled to encourage use of more environmentally-friendly automobiles.

"While half of carbon emissions come from buildings, a quarter come from vehicles. So today I want to do more to encourage cleaner fuels and cars. I propose to radically reform vehicle excise duty," Brown said.

A small number of cars with the lowest carbon emissions would be granted a tax rate of zero, while drivers of the heaviest polluting cars will be forced to pay 210 pounds per year to use Britain's roads, an increase of 10.5 percent.

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