As well as setting out the size of the prize, the Infrastructure Carbon Review makes sector-specific recommendations on using technology, construction techniques and low carbon materials to cut emissions. Infrastructure and related areas currently account for around half of UK emissions.
Twenty companies including EDF, National Grid and Anglian Water endorsed the review.
Commercial secretary Lord Deighton said: “If we want a strong, globally competitive economy we have to invest in efficient infrastructure.”
Business and energy minister Michael Fallon said the report, written by business leaders, “throws down the gauntlet to the construction sector”.
The companies will report on their progress at a cross-industry event in spring 2014, hosted by the Green Construction Board.
Chris Newsome, director at Anglian Water and chair of the Green Construction Board working group, said he was “very proud” to be associated with the initiative. “This review is about reducing carbon and reducing cost. Leaders across the infrastructure sector are endorsing the review and taking action to release the value of lower carbon solutions.”