This report is concerned with challenges and opportunities to grow local economic activity, employment and skills in response to climate change. The report emphasizes that the transition to a green economy will take time, but cost effective options to reduce carbon pollution cannot be delayed. What role can public authorities play in the transition to a green economy? How can policies encourage business creation in green-related sectors? What are the obstacles facing skills provision for the green economy? How to approach job creation in the green economy? These and other questions are addressed in this report, and also provide a series of best practices that illustrate the various approaches suggested.