The Northern Energy Taskforce suggests the money should form part of deals with areas to make homes more efficient and rolling out solar panels.
The report also calls for the Government to take a fresh look at carbon capture and storage (CCS) technology.
The White Rose Project, a CCS scheme based around the Drax power station, collapsed after the Government cancelled its competition for £1bn of government funding to support the technology two years ago.
The project was considered a first step to making Yorkshire a world leader in CCS, creating thousands of jobs.
The taskforce , backed by the IPPR North thinktanks, makes a string of recommendations designed to help the North use its longstanding expertise in energy generation to benefit from the green energy revolution.
Northern Energy Taskforce chairman Sir John Harman said: “If government is going to make further progress on the Paris agreement it requires a step-change in its approach.
“For instance, devolving carbon budgets would mean the North is responsible for its own destiny and turn a national policy-headache into northern prosperity, creating up to 100,000 of tomorrow’s green jobs.
“If it’s serious about spreading growth across the country, while meeting decarbonisation goals, the government must take this issue seriously and give the North of England real powers to kickstart a local energy revolution.”