A council leader says he wants to lead the way on carbon neutral housing after a major application from the authority was approved.
South Kesteven District Council planners passed the St Martin's Park proposals in Stamford at a meeting on Wednesday.
The scheme - on the former Cummins diesel generator site, includes 190 homes, a retirement village of a further 150 homes and business units.
The site is owned by the council.
At the planning committee, councillor Phil Dilks asked: "Given that half of the applicant is this council, which is a climate change council, wouldn't it have been in our gift to have declared this development as a green village or a carbon zero site, which in my view would have been... a feather in Stamford's hat."
"What worries me is we come to planning meetings like this one every month, and approve applications, with absolutely no mitigations on climate change.
"Quite the reverse, those houses, including this application, are generating thousands more tonnes of carbon into the air," he said.
Councillors also raised concerns over increased traffic, the safety of a nearby railway crossing and the degradation of nearby nature sites, according to the Local Democracy Reporting Service.
Following approval, council leader Kelham Cooke said he would work with developers to "make sure" the development was as carbon efficient as possible.
"This can be an example for the future developments across the district," he said.
However, he added that in terms of delivery of carbon neutral homes there was "still a long way for the industry to go… I don't think we're there yet".
The authority is working with Burghley Estates, owners of the greenfield land next door, which is part of the development.
More detailed plans are due to be submitted at a later date.