New standards for equipment and cars - like the EU ban on high-voltage vacuum cleaners - can help drive cleaner products, it argues.
Lead author of the report, Jeremy Oppenheim, told BBC News: "The key message is that we can deliver better growth and tackle climate change at the same time - we don't need to choose."
As examples of best practice in cities he held up Brazil's Curitiba, Colombia's Bogota - and also London: "London is a poster child," he said. "We're redefining the city - we've got a public transport system that works; we've introduced congestion pricing for our roads; we're driving better productivity through our transport system - and that's helping the city as a whole.