Although Merseyside is not a particularly large producer of CO2 the cost of failing to adjust to the legislation could amount to 1% of the area's economic output – the equivalent of £200m in today's money.

The 90,000 jobs threatened are in the following sectors: 2,500 in aviation, 19,000 in shipping and maritime, 15,000 in land transport, 22,000 in energy intensive manufacturing, 4,000 in automotive, and 26,000 in construction.

If firms in these sectors were to pay the full costs of each tonne of carbon the increase in costs would be between 2% and 22% of their economic output.

In 2006 the city region's economy produced about 11m tonnes of carbon dioxide, around half came from business and public sector, 20% from transport, and around a third by domestic power use.

Runcorn chemicals company Ineos Chlor and Pilkington glass in St Helens and their associated power suppliers have 14% of the region's CO2 allocation.

Ineos Chlor is already in the process of planning a major incinerator that will burn municipal waste, and will produce the equivalent to the electricity supply for around 200,000 homes.

The report also details how the region can best take advantage of opportunities.

A key feature is the Mersey estuary – one of the largest tidal ranges in the UK. Developer Peel is currently working on plans to harness the power of the river.

Report authors Regeneris state off and on-shore wind power generation schemes should also be promoted.

As a west facing port Liverpool is well placed to import biomass products, which could also be made from the Mersey Forest.

The region's world-class research facilities at its universities, the Proudman Oceanographic Laboratory, and the Pilkington Technology Centre also give the area an advantage.

The report recommends carrying out further work into creating a tidal centre of excellence, developing a off-shore wind supply chain, developing environmental technology services, improving energy efficiency in homes and expanding business support for energy efficiency.

Ms Rogers said: “It became clear to TMP and Liverpool City Council that in order to fully engage with the potential economic impact and opportunities of climate change the Liverpool city region required a comprehensive and dispassionate review of its options to create a low carbon economy.

"It was a view shared by a number of our key partners – hence the report we are presenting today.”

As the body responsible for the city region's economic development TMP has appointed a low carbon economy manager to assist the public and private sector to meet new emissions legislation and maximise new opportunities.

TO READ the full report visit www.blogs.liverpooldailypost.co.uk/dalestreetblues