The Government has signalled the go-ahead for a new generation of coal fired power stations - but insisted they would be made to reduce their carbon emissions.
Energy Secretary Ed Miliband said up to four new coal plants could be built before 2020, which he said was "important for our energy mix".
But he said at least a portion of each new power station must be fitted with the technology to trap and store their carbon dioxide underground.
His announcement to MPs followed a statement by Chancellor Alistair Darling in Wednesday's Budget that there would be funding for up to four projects which demonstrate the new technology.
Mr Miliband said a levy to raise money for fitting the carbon capture and storage technology (CCS), which has not yet been tested at a commercial scale, would add an estimated 2% on energy bills by 2020.
Mr Miliband said: "The era of new unabated coal has come to an end," as he announced all new coal fired power stations would be required to have CCS technology.
The new "clean" plants must demonstrate CCS on at least 300 MW out output.
And if the technology works, the power stations will then have to have CCS fitted to cover 100% of their energy output by 2025.
The Energy Secretary said the scheme was "the most environmentally ambitious of any country in the world, and puts us in a world leadership position on CCS and coal."
And he said: "There is no alternative to CCS if we are serious about fighting climate change and retaining a diverse mix of energy sources for our economy."
