Businesses do not need to choose between going green or attempting to grow.

This is according to John Cridland, director-general of the Confederation of British Industry (CBI), who added if the correct policies are put in place then "green business will be a major pillar of our future growth".

It means any firm with business liability insurance has the chance to be a global front-runner in low carbon products and services.

Mr Cridland was speaking after a report by the CBI discovered an additional £20 billion could be added to gross domestic product by 2015 if the right initiatives are introduced.

He observed around one-third of growth in 2011 was in green industries, which highlights the benefits they can bring.

The expert wants to see the government get behind environmentally-friendly measures, rather than giving mixed signals as it currently is.

"We must cut green tape and pay attention to competitiveness," Mr Cridland remarked.