Barack Obama declared that he could save the planet and the American economy yesterday as he sought to drag the political spotlight away from the scandal surrounding Illinois governor Rod Blagojevich.

Unveiling an environmental team that includes Nobel prize winning scientist Steven Chu as his nomination for Energy Secretary, the President-elect insisted: “There is not a contradiction between economic growth and sound environmental practice.”

He said that the creation of millions of new green jobs, including public works to ensure buildings are energy efficient, would be an engine for economic recovery rather than an impediment on growth as America embarks on a “journey to a new frontier”.

Senior British officials are known to be concerned that Mr Obama’s environmental agenda could be one of the first casualties of the economic crisis.

Business leaders are already preparing to present his plan to generate $15 billion a year by selling carbon use credits as a tax on American jobs. Mr Chu was yesterday criticised for previously unpublished remarks suggesting that he wanted to raise the price of petrol to European levels.

Al Gore, whom the President-elect met last week urged him to start making “significant changes” as soon as he takes office next month, adding: “This year coming up is the most important opportunity the world has ever had to make progress in really solving the climate crisis.”

Mr Obama promised: “We must have the will to act and act boldly.” In a gesture to allies looking for action at the Copenhagen summit next year where negotiations will take place on a successor to the Kyoto Protocol, he added: “Solutions to global climate change must be global.”

His press conference, however, was once more dominated by questions about Mr Blagojevich, who is accused of seeking to sell off Mr Obama’s vacant Senate seat in Illinois.

Before it began the transition team issued a brief statement saying that a review by Mr Obama’s own lawyer shows he had no direct contact with Mr Blagojevich about the appointment and aides had done nothing wrong.

Questions in recent days have focused on whether the President-elect’s incoming White House chief of staff, Rahm Emanuel, was recorded by FBI wiretaps discussing the vacant seat with Mr Blagojevich.

The review would not be published, he added, until next week. “I would ask for your patience because I do not want to interfere with an ongoing investigation.” Yesterday it emerged that another vacant seat may be filled by the the daughter of President John F Kennedy.

Caroline Kennedy, the daughter of the slain American President is seeking to become the latest member of her family to pursue a political career after formally declaring her interest in filling the New York Senate seat being vacated by Hillary Clinton.

New York Governor David Paterson confirmed that he had spoken to Ms Kennedy, who since the death of her father had spent much her life avoiding the spotlight before this year throwing herself into Barack Obama’s election campaign.

Mr Paterson said that Ms Kennedy wanted to “talk to me about her qualifications for the post”. He added: “Obviously people are interested and would like to come in and present their case, and if they ask for that time I’ll grant it to them.”

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