Cycling promotion will be helped by the extra money

In a letter to London Green Party Assembly Members, the mayor sets aside cash in the 2007/8 budget to boost energy efficiency and promote cycling.

Measures are also included to help cut carbon emissions as part of the Climate Change Action Plan.

Mr Livingstone said: "It is no accident that London is leading the way on tackling climate change issues."

'Number one priority'

"London is the only region in the country where the Greens are an active partner and the package we are announcing will help us maintain that position, he added.

The �47m includes:

• �8m to increase the energy performance of London's buildings
• �8m from Transport for London for a Climate Change Mitigation Fund mainly to support energy-efficient transport technology: �25m over three financial years
• �16m for cycling over the next year: �40m for cycling over the next three financial years
�4.6m to promote walking
• �5.5m in 2007/8 to support travel demand management to encourage people to switch to sustainable travel

Assembly members are currently negotiating whether to back the mayor's budget.

"Tackling climate change is the number one priority for my administration. This set of measures will deliver real reductions in CO2 emissions, Mr Livingstone said.

Jenny Jones, a Green Party member of the London Assembly, said: "This agreement will help London lead the way on climate change, traffic reduction and green energy.

"These new proposals build on the work we have already carried out on safer roads, cleaner air and better food."