The UK has fallen from 5th to 13th in a global ranking of low-carbon investment, as progress lags on decarbonising buildings, transport and industry, the CBI has said.
According to the organisation's latest climate change tracker, despite the Government setting the wheels in motion in a number of key areas, including providing funding for the Green Investment Bank, investor confidence remains low.

Unexpected changes to the Carbon Reduction Commitment scheme, feed-in tariffs and the North Sea oil and gas tax have all caused damage to business confidence, said the CBI.

Uncertainty also surrounds a number of major policies, it added, including electricity market reform, funding for Carbon Capture and Storage, the Renewable Heat Initiative and consumer grants for low-carbon vehicles.

CBI chief policy director Katja Hall said: "One year on from pledging to be the 'greenest government ever', the coalition has still not delivered the policy landscape needed to ensure we meet tough emissions targets. Decisions being taken now will make or break the UK's low-carbon economy. Our latest climate change tracker shows that progress is failing to match the Government's ambition."

She added: "The carbon floor price and CRC have been dressed up as helping achieve carbon targets but they risk becoming little more that revenue raisers for the Treasury. Meanwhile, there is also genuine concern about how the Green Deal and electricity market reform will work."

The CBI is calling on the Government to take several actions in the next six months. These include encouraging businesses to invest in energy efficiency measures by simplifying the CRC, and working closely with industry to develop secondary legislation to successfully deliver the Green Deal.