Up to 150,000 new jobs could be created through investment in the low-carbon economy, according to a new report published by the Local Government Association (LGA).

As the economy slides towards recession and unemployment continues to rise, the LGA will today unveil plans for a 'Green New Deal' that would help generate new jobs, save carbon, cut fuel poverty and increase the country's energy security.

The new report - Creating green jobs: developing local low-carbon economies - calls on the government to give councils the powers they need to unlock the job creating potential of tackling climate change.

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Sir Jeremy Beecham, Vice Chair of the LGA, said: "Creating a low carbon economy will create thousands of new jobs, support small businesses and develop new markets. At a time when we are seeing more and more redundancies, a Green New Deal would boost the economy and help fight fuel poverty.

"Taking action now to combat climate change makes economic and environmental sense. If we do not take action to cut carbon emissions now, then it will cost our future generations more in the long run."

Councils are already doing a great deal to promote 'green growth' through the creative use of planning, purchasing decisions, partnerships with energy suppliers and public sector apprenticeships. But the LGA report argues that there is an inescapable need to do more – particularly in those areas at greatest risk from recession and where unemployment is already at high levels.

Sir Jeremy added: "Local government has many vitally important roles to play in helping businesses and residents through the economic downturn. Equipping the country to come through the recovery in a better position to combat climate change is one of the most important challenges councils face."

(CD/JM)