And at the same time as it cuts emissions, the government could create more jobs, erase fuel poverty and increase efficiency, the report states.
Simon Williams, director of corporate affairs and social goals at the Co-operative Bank, commented: "As a business we have reduced our own emissions by 90 per cent since 1997, so we welcome this report showing an 80 per cent cut in household emissions is achievable.
"However, in order to realise the vision of the homes of the future set out in the report, significant government intervention is required urgently."
The government has already set the goal that all houses built after 2016 will have zero carbon emissions.
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