Environmentalists say Thursday's federal budget missed an opportunity to create green jobs and took a step backward in protecting the environment.

The budget included a section entitled "Green Jobs and Growth," which included $100 million over the next four years for clean energy technologies and production in the forestry sector.

It also included $80 million in additional incentives for homeowners to make their home more energy-efficient.

Environmental groups say Canada lags behind other countries in these green energy initiatives.

Tim Weis, director of renewable energy policy for the Pembina Institute, said based on their respective budgets for 2010-11, the U.S. will outspend Canada 14 to 1 per capita on renewable energy and 2 to 1 on energy efficiency.

"There's a really attractive market in the United States right now. It's going to be difficult to see if Canadian jobs or Canadian companies want to invest in Canada when there's such an attractive market right south of the border," said Weis.

The group also criticized the government for including no new money for environmental management of the oil sands. In fact, the Pembina Institute points out the controversial project isn't mentioned at all in the 451-page document.

The budget included some new money for environmental protection, including $8 million for protecting the Great Lakes and $36 million to fight the spread of invasive species in Canada.

But Sierra Club Canada says that amount pales in comparison to the $475 million the U.S. has committed to cleaning and protecting the Great Lakes.

The group also says a regulatory change in the budget is seeking to "begin dismantling the Environmental Assessment Agency."

Currently, the agency reviews all major energy projects before they are approved. The budget proposes delegating responsibility for those environmental assessments to the National Energy Board or the Canadian Nuclear safe Commission.

The Sierra Club says those agencies have ties to the oil and nuclear industries, and removing the Environmental Assessment Agency from the process threatens safeguards.

"Environmental protection is not red tape. It is essential in preventing environmental and public health disasters like Walkerton," said the group's executive director John Bennett, in a statement.

NDP Leader Jack Layton says environmental assessment has never been the mandate of the National Energy Board.

"This is the same outfit that been approving every pipeline that showed up to ship raw bitumen down to the States, including shipping jobs and creating pollution up here," said Layton.