Speaking at the launch of a Department for the Environment and Rural Affairs commission on environmental markets and economics, Mr Miliband said that there was potentially £46 billion and 400,000 jobs to be made from developing a low-carbon economy, a reversal of the oft-held belief among business types that profit and environmental concern are incompatible.

“Climate change is a serious threat but also a business opportunity,” said the minister. “There are jobs and wealth to be created in reducing greenhouse gas emissions, as there are in tackling other environmental problems.

“In a world where energy and carbon emissions are constrained, every business must take resource productivity seriously as a source of competitive advantage. Every industry should become an environmental industry - and environmental principles must permeate beyond traditional environmental sectors.”

Businesses, trade unions, non governmental organisations and universities will work together on the commission, which will report in the spring of 2007.

Trade and Industry secretary Alistair Darling, who will co-chair the commission with Mr Miliband, also spoke at the launch. He predicted that the environment market could “double in size” within the next ten years.

“The whole world must move to a low carbon economy,” he added. “This green industrial revolution presents the opportunity for new goods, new services, new capital markets and new jobs. We need to harness the opportunities to make sure British business leads this revolution.”