New jobs can be created by stimulating green growth around the world, it has been claimed.

The Organisation for Economic Co-operation and Development (OECD) has predicted tapping into investment and innovation in the low-carbon sector will boost economies and generate employment.

According to a report by the Paris-based body "green and growth go together" and nations should look towards environmentally-friendly developments to fuel economic expansion and labor markets.

Commercial opportunities within the natural resources sectors could generate trillions of dollars by 2050, the agency claimed, adding that the cost of inaction with regards to infrastructure development could be high.

"With the right policies in place, we can create jobs, increase prosperity, preserve our environment and improve the quality of life. All at the same time," stated OECD secretary-general Angel Gurria.

In its latest Economic Outlook, the OECD urged countries to improve their labor market policies in order to stimulate employment, as joblessness remains a significant legacy of the 2008 financial markets crisis.

Posted by Lee Thrace