He stated: "Reducing carbon emissions will release funds that could be spent on resources and services for local residents, and will also enable the councils to improve their green credentials and reputation in the community."
The Carbon Trust claims to have already supported over 260 local authorities in their bid to reduce the amount they spend on electric and gas.
By reducing carbon emissions, councils have together achieved annual savings of more than £120 million each year, it reported.
Last week, an npower study indicated that one third of schools leave their heating on either too high or long, using more energy than necessary.
In addition, 38 per cent of institutions have their lights switched on all day, again adding to their electricity bills.
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