Speaking at the annual conference of the agency only hours before Alistair Darling, the chancellor, announced his VAT cuts and public spending package, the former culture secretary called for a comprehensive long-term strategy to cover investments in renewable energy, green technology, energy efficiency and developing new technologies like carbon capture and storage.
His speech came as Climate Change Secreatry Ed Miliband, and Hilary Benn the Environment Secretary, had been pressing Gordon Brown and the Treasury, for a big boost for green policies in the pre-budget statement.
The signs are that they have only been partially successful. The PBR announcement includes a boost for job-intensive home insulation programmes which could create 10,000 or more jobs through lagging lofts and installing other energy saving measures.
It also included upgrading of council and housing association homes. Some extra money is expected for flood protection measures.
What appears to be missing is the implementation of an overall coordinated strategy across Whitehall, beyond pressure from the Cabinet Office for more green procurement orders by government.
This is despite pressure from Mr. Miliband for a coordinated approach from developing hybrid cars to boosting renewable energy from wind farms to solar power.
Two major oil companies with interests in developing renewable energy - BP and Shell - have recently pulled out of major wind farm and solar projects in the UK - to develop renewable energy schemes in the United States, where big subsidies were made available by George Bush and are to be extended by Barack Obama. Both comapnies have complained about the difficulties of obtaining planning permission and lack of tax incentives for renewable energy.
Lord Smith said that the government should go ahead with major wind farms, solar power, tidal barrages and coal fired power stations with carbon capture equipment as part of a massive renewable energy programme.
He wants more incentives for energy efficiency homes and businesses, greater use of combined heat and power programmes and new feed-in tariffs to help householders develop sustainable energy which can be fed into the national grid.
Lord Smith said: "We must hold our nerve and invest in green technology despite the current pressures on the economy. We should take the lead on developing carbon capture so we can develop new industries that create new jobs."
Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.
The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.
The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.
Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.
The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.
Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.
The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.
The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.
Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.
“By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”
More information can be found on the Microgeneration Strategy consultation web page
A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.
The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.
Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.
The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.
Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."