The proposals form part of a consultation that will be released in the summer, along with an environmental report. Decisions on any applications to construct a new coal power station will be taken once this consultation process has been completed.
The Government will seek views on whether it is possible to implement these conditions through an emissions performance standard.
The energy and climate change secretary, Ed Miliband, says that for new coal plants to be built, they will need to include the demonstration plants, and undergo a full-scale CCS retrofit within five years of the technology being independently judged technically and commercially proven.