The Association for Public Service Excellence (APSE) is calling on central government to unlock local authorities’ potential to develop the green economy.

APSE’s rallying cry came as it launched a new report The transition to the green economy: the vital role of the ensuring council, which shows what local authorities are achieving and highlights ways in which national policy could be changed to enable them to do more.

An environmentally sustainable economy is essential to combat climate change, enable the UK to compete in the £4 trillion global low-carbon market, reduce energy expenditure, improve security of supply and generate employment. Councils have a pivotal role in ensuring the transition to a green economy that is not properly recognised in current national policy, according to APSE.

Forty-six case studies in the report, written by Philip Monaghan and Eve Sadler of think-tank Infrangilis, show how every function within a local authority can make a powerful contribution towards the shift to a green economy. Leadership in Hackney, spatial planning in Peterborough, transport in Bromsgrove and Redditch, property in Birmingham, waste management in Stirling and green skills training in Blaeneau Gwent are among the many examples given.

APSE’s chief executive, Paul O’Brien, said: ‘Councils are already making an impressive contribution to developing the green economy through use of their assets, community leadership, regeneration, planning, procurement, transport, education and management of services on the front-line. It is disappointing that, despite these achievements, the Government’s recent policy roadmap on the green economy does not make any reference to the role of local government in this important transition. Such a fragmented approach undermines collaborative efforts and is damaging to the public purse.’

He added: ‘Our new report identifies practical steps central government should take to help realise local government’s huge potential to ensure the UK’s transition to the green economy.’

Measures which could be taken by central government to help unlock local authorities’ potential discussed in the report include: enabling £143bn pension fund investment in low carbon regeneration projects; requiring the electricity industry to work on district energy planning; and making Feed In Tariffs viable for large-scale social housing schemes. The Government could also allow local authorities greater financial self-determination to boost the green economy, for example by enabling them to offer council tax rebates to households that retrofit homes to reduce carbon.

The report shows how the ‘ensuring council’ model developed by APSE – whereby a local authority retains a core capacity to deliver efficient services and aligns this with strategic vision, policy co-ordination, leadership, entrepreneurship and accountability – can underpin the transition to a green economy.

With recent announcements on feed in tariffs for solar photovoltaics creating such controversy, many could have been forgiven for believing the opportunity for local government to deliver local growth through its response to climate change had gone. From what I have seen in councils around the country, this is far from the case. However, the reduction in tarrifs does create an opportunity to reappraise what strategy authorities should pursue in a rapidly changing environment.

It could be said that there has been an over emphasis on renewables to the detriment of energy efficiency measures of late. Indeed, it has been a bit like investing in larger size clothing to tackle an expanding waistline rather than focusing on the fundamental problem of over consumption.

In the current financial climate nobody needs to apologise for building their previous strategy around pursuing feed in tariffs, renewable obligations certificates or the renewable heat incentive to fund an overall approach to tackling climate change. However, I predict a rebalancing of strategy brought about by a shifting Government emphasis towards energy efficiency measures signalled by Green Deal. Significant opportunities exist for local authorities in this area and, as with the feed in tarrifs, councils that move first will get the most benefit, while those that dawdle may fall victim to funds running out further down the line.

One authority that has been at the forefront of strategy development on environmental sustainability over the past decade is Nottingham City Council and there will be very few in local government who are not familiar with the Nottingham Declaration. An ambitious plan has been developed aimed at providing 20% of the city’s energy through renewable and low carbon sources by 2020; the rate is 11.5% already.

I was therefore interested to hear the authority’s plans for Green Deal. It is looking to become a Green Deal provider and targeting an £80m investment with potential benefit for 12,900 properties across the city. This should generate £13m of annual savings with a payback period of 20 years.

Combine this with recent investment in solar and the 8,000 jobs that are predicted from the imminent expansion of the city’s tram system and you can see very quickly how an economic growth strategy built around energy efficiency and the development of renewable energy schemes adds up.

APSE's view is that at a time when local government is once again being looked at as a vehicle for creating local economic growth it would be surprising if the opportunities that the green economy creates were not near the top of the list for politicians and strategists alike.

Took part in a Guardian online debate today on the impact that the cuts were having on the Green agenda in local government.

A point I made that sparked a bit of debate was about how you generate behavioural change amongst the public, the example I gave is pasted below:

Engage communities by appealing to what matters to them: Solar panel work in Birmingham provides residents with free electricity from the panels. This has resulted in people changing the time of day when they have showers and do their washing, to daylight hours. This is because they save money on electricity. Something as simple as fitting meters in homes has challenged community thinking and generated behavioural change that creates a sustainability benefit.

In APSE we recognise this is a key element of tackling climate change, if energy efficiency or renewable schemes are implemented without the public's involvement then we haven't really tackled the root cause of the problem.

Today has been one of those days where your diary catches up with you, it’s my third flight in 3 days and this one is delayed! I am supposed to be speaking at an energy expo at the Olympia in London with Steve Cirell but as it becomes apparent that I am going to miss the start we exchange slides by email.

We were supposed to be doing a joint talk on the opportunities that exist around renewable energy sources for local authorities.

Eventually I get there just after the session has finished but Steve tells me it went well in the end and at least I get a chance to spend an hour walking around the exhibition finding out about the latest products, services and innovations in this area before heading for a train to Nottingham to attend the City Council’s annual Goose Fair Dinner.

At Labour party conference this week in Manchester and a strange atmosphere hangs over it. After 13 years of being the party of government there is obviously some disappointment and it’s strange to see former Ministers walking around on their own without the usual entourage of suits with clipboards surrounding them. However, with the election of a new leader there is also a mood of optimism amongst many delegates that the page has been turned on new labour and things have moved on.

On the fringe the main topics are the impact of the recession on local economies, climate change and a weird fixation with all things co-operative and mutual. The economic issues dominate all others and efficiencies retain a key focus. For me the innovative ideas around carbon reduction hold great promise for local government as it is the one area where we can be expansive around employment and activity due to the self financing opportunities created by the feed in tariffs. I quiz former CLG Minister John Denham and Leader of Manchester City Council, Richard Leese about this on a fringe and get strong support for my suggestion that the public sector is key to making this agenda happen and that we should be going after these opportunities much more aggressively.

The one I remain to be convinced about is that cooperatives and mutual’s are the answer to delivering services more efficiently and effectively. I like to see evidence to support ideas and despite claims that cooperatives will solve everything from poverty to disease, famine and plague the evidence doesn’t seem to be overwhelming.

In Cornwall today to meet up with the Programme Director for Green Cornwall at Cornwall Council, Steve Cirell. Steve and me go back 15 years and shared many platforms and projects over the years in his time as Head of the Public Sector Unit at Eversheds. Steve has always been passionate about his work and I remember him as a leading voice in local government during the battles over CCT, his expertise on Trading and Charging, PFI and more lately on Best Value.

To say he is embracing this new venture with enthusiasm would be an understatement. He has developed plans for an energy saving company to generate solar, wind, biomass, heat, electric cars, hydro and wave / tidal power. The plan is for the Council to own all of this and my head was spinning with the possibilities this creates for not only Cornwall but for Councils across the country.

This is definitely the future and it takes pioneers like Steve to change thinking and get things moving on an agenda that's time has come.

The trip also gave me a chance to catch up with Arthur Hooper, Cornwall’s Head of Highways who told me about a quarry they have just bought in order to ensure they have a sustainable supply of materials.

Up until recently climate change has often been described as the greatest challenge of our time although perhaps the world wide recession and the state of the UKs public finances has started to contest that notion.

Now with the commencement of the Carbon Reduction Commitment (CRC) looming large for local government these twin phenomena’s may converge to create a perfect financial storm. For authorities who are not at an advanced stage of planning in their response to CRC the monetary consequences maybe about as welcome as a sneezing pig wearing a poncho and sombrero.

The CRC is a mandatory carbon trading scheme and will cover both public and private sector organisations. It is designed to encourage large non-energy intensive organisations in the UK to reduce their CO2 emissions. The aim of the carbon reduction commitment is to reduce the level of carbon emissions by approximately 1.2 million tonnes of CO2 per year by 2020. As a Climate Change Bill commitment, the scheme is aiming for an 80% reduction in CO2 emissions by 2050.

Even though the scheme doesn’t officially start until April 2010, local authorities will need to make preparations before that date to ensure that they comply with the requirements. This is something that will require cooperation and coordination across all services within every Council.

By now authorities should have a plan for the coming five years. It is anticipated that low hanging fruit can be gathered in years one and two by turning down heating controls and dimming streetlights however by year three targets will start to dictate that larger energy reduction projects require to come on-stream. Therefore if you are not seriously considering energy from waste initiatives, major insulation programmes or district heating schemes now you really should be.

Once the trading scheme moves to the free market on tonnage costs and government allowances are reduced beyond 2013, the cost implications could be significant for those who have paid lip service to this issue. Emerging strategies and tactics for CRC should make for compulsive viewing.

The vast majority of authorities will commence from the same starting point on CRC and therefore a legacy of excellent performance under CPA will not necessarily act as a guarantee for success on this agenda. Lasting reputations can be made and lost very easily, just look at David Carradine, he was once best known for his role in Kung Fu, well not anymore he isn’t.