Local authorities are being urged to apply for a share of £1bn to improve the energy efficiency of publicly owned buildings.
The Public Sector Decarbonisation Scheme, delivered by Salix Finance, will help councils install energy efficiency and low carbon heating measures, reducing energy bills and carbon emissions.
The scheme is also expected to create up to 30,000 low-carbon jobs.
Business and energy secretary, Alok Sharma, said: 'Our plan to upgrade the nation’s buildings and help build back better is good news for jobs, the environment and people’s back pockets, as we reduce emissions and help cut energy bills.'
Annie Shepperd, chief executive at Salix Finance, said: 'The announcement yesterday paves the way for workers in the energy efficiency sector to see their jobs secured, and, for the country to know that public sector organisations will be leading the way in reducing the carbon footprint of the UK.'
The Government also announced it was making £50m available for social housing through a demonstrator project for the Social Housing Decarbonisation Fund (SHDF).