The long-awaited clean growth strategy sets out measures for housing, businesses, transport, agriculture and the power sector, and to make the United Kingdom a "world leader" in green finance.
The Northern Energy Taskforce suggests the money should form part of deals with areas to make homes more efficient and rolling out solar panels.
The Clean Growth Strategy aims to improve the route to market for renewable technologies such as offshore wind by committing up to £557M (US$736M) for further "Pot 2" contract for difference auctions, with the next one planned for early 2019.
There are also plans to establish a new network of forests and fund larger-scale woodland and forest creation.
Responding to the announcement, RenewableUK's chief executive, Hugh McNeal said "This government has unveiled an ambitious plan which sets us firmly on a course to deliver the modern, clean energy system which the United Kingdom needs".
"The world is moving from being powered by polluting fossil fuels to clean energy".
"We've shown beyond doubt that renewable energy projects are an effective way to cut our emissions, while creating thousands of good jobs and attracting billions of pounds worth of investment".
There are already more than 430,000 jobs in low carbon businesses and their supply chains, and the low carbon economy could grow by 11% a year between 2015 and 2030 - faster than the rest of the economy, the Government said.
But the Government's advisory Committee on Climate Change (CCC) warned in the summer that "urgent" plans were needed as the move to a low-carbon economy was in danger of being derailed by a lack of action by ministers.
Sir John Harman, chairman of the Northern Energy Taskforce and former chair of the Environment Agency, said the strategy, which was being launched in Leeds today, would help the Government meet its commitment to Paris climate agreement.