There is no better test of devolution than climate change. Although this is a global challenge, the commitment of councils – as local leaders, shaping towns and cities, working closely with their communities – is a vital part of the jigsaw. Already, councils have put themselves in the vanguard. More than 200 local authorities have now signed up to the Nottingham Declaration. They have some inspiring stories to tell – cutting their own carbon footprint, investing in local renewable and low-carbon energy, and setting Merton-style rules for new developments. Some are breaking the mould with new technology – using thermal imaging to target support on the streets where they see the most energy escaping. I believe every local authority could sign up to the Nottingham Declaration – or follow in the footsteps of the third who have already worked with the Carbon Trust to reduce carbon across their estate. And, I know many places are considering making climate change one of their targets for improvement in the Local Area Agreements, recognising it is a part of core business. I welcome that. And I'm pleased to see Whitehall and town halls working more than ever in partnership – as in the joint commitment that my department and DEFRA have signed up to with the core cities. So, where next? Last week, the Local Government Association (LGA) received a report from its climate change commission. I hope this will help take the debate to a new level – and that it will help us identify further common ground where central and local government can work together in partnership. Once the LGA has come to a view, we will need to have a proper discussion. But let me identify two areas where I believe we can make real progress. First, planning. At a national level, we are reforming the planning system to pave the way for swifter decisions on the vital green infrastructure we need for the future – such as the 1.4GW of onshore wind farms currently awaiting consent in England and Wales. At the same time, we want to ensure local authorities can use their planning powers to shape a low-carbon future. And, let me make clear, this means taking Merton-style rules further. If we are going to reach our target for all new homes to be zero-carbon by 2016, we will need to see much more local renewable and low-carbon energy, not less, and councils will be able to continue to adopt Merton-style rules as part of their local development plan. Second, working with communities. Many councils already do a great job of informing local people, making it easier for them to recycle, and helping them insulate their lofts. On the one hand, I believe the challenge for the future is going to be getting better at working with the people who still don't quite see what's in it for them yet – plugging away with the message that going green can be good for your pocket as well as the planet. But the other half of the challenge is harnessing the enthusiasm of the people already champing at the bit. Increasingly, they will be able to use calls for action and petition power to demand action. For the truly creative, there are lessons to learn from places which have got local people behind their climate change efforts by giving them a stake in it, with a real sense of pride and ownership. Great examples include community composting in Devon, locally-driven energy services companies in Portsmouth, and community-owned windfarms in the Scottish Isles. These represent localism and tough action on climate change going hand in hand. This debate will be with us for years. The prime minister has called it ‘the great project of our generation'. It will not be without its controversies. But, as we look ahead, one thing is clear. Climate change is one of the defining issues where councils need to show the mature approach to governing envisaged in the new local government framework. I am confident they will rise to the challenge. Hazel Blears is secretary of state for communities and local government