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Energy secretary Chris Huhne has outlined plans to create almost 250,000 jobs in green industries.
The "green deal" will lead to thousands of workers modernising 26 million homes to make them energy efficient as part of government plans to be the "greenest government ever".
He described the plans as the "most ambitious" effort ever attempted to improve energy efficiency in homes and businesses in the UK.
The coalition believes the plans will lead to the energy efficiency sector to employ 246,000 people in installation and supply chain roles by 2030.
Huhne told conference: "Since there is no money left, my department is pioneering new ways of turning this government into the greenest ever.
"Our homes are responsible for a quarter of the UK's carbon emissions, because they leak heat like a sieve.
"We use more energy to heat our homes than Sweden, where it's seven degrees colder in January. We might as well be standing outside burning £50 notes.
"By stopping this waste, we can make big savings on bills, and use them to pay businesses for the cost of insulation. This is the green deal."
Under the policy, companies would pay upfront to insulate homes, with householders paying back from the energy savings that result.
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