The traditional economic view of environmental protection acting against the interests of employment is now challenged as outdated and false, with studies in environmental economic literature increasingly promoting the positive links between the two. An overview of the synergies thought to exist between environmental improvement and employment creation is provided. Special attention is paid to energy, a central theme of UK sustainable development strategy, due to the role of CO2 as the dominant greenhouse gas. The methodological tools available for assessing employment impacts are reviewed, the limitations of the alternative modelling choices discussed, and the 'bottom-up' analysis of energy - employment interaction is placed in a UK context. As a local focus for carbon reduction policies is increasingly promoted, the paper concludes with a discussion of the value of analysis at a regional scale.