The UK risks missing an opportunity if the government fails to act to stimulate the growth of the green business sector, says an industry body.

According to the Environmental Industries Commission, concern for environmental issues is helping the sector grow, but more government help is needed to make the most of an anticipated worldwide increase.

"There are tremendous opportunities opening up, and first mover advantage in this sector is considerable. But the government must move to boost the market," the commission's director Merlin Hyman told the Financial Times.

He said that government estimates predicted a rapid growth for the environmental sector, from $550 billion in 2002 to $688 billion in 2010.

Significantly, he indicated that the UK could be lagging behind other nations in terms of support for environmental technology.

Mr Hyman told the Financial Times that delays in the appearance of a directive on the disposal of electrical and electronic equipment waste had already obstructed the development of these skills.

"The real driver in this industry is regulation. Companies would not invest in environmental technology unless they were required to," he argued.

Conversely, he said that good government support for carbon trading in the UK, through which London has become the centre for the trading of greenhouse gas emission "credits", had given the country a head start with a £215 million voluntary carbon trading scheme.

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