A "new model" of economic growth will be required to address climate change and to marry productivity with the green agenda, David Miliband has said.
The environment secretary said "tough decisions and trade-offs" were needed to ensure businesses and society met their environmental obligations.
Speaking in London, Mr Miliband said it was in firms' financial interest to help build a low carbon economy.
Future legislation on climate change would give "clarity" to firms, he said.
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