The government must spend ten times more on green technology if the UK is to be a low-carbon leader, according to the Confederation of British Industries.
A new report warns that a "general lack of ambition" could damage chances of meeting the target of cutting 80 per cent of carbon emissions by 2050.
The CBI urges the government to boost its £250 million annual spend on green technology to match its £2.6 billion spend on defence.
"It will take a coordinated effort from government and business to ensure the UK is ready to exploit the potential of a low-carbon economy," said Neil Bentley, business environment director at the CBI.
The Climate Change Act, which committed the UK to world-leading carbon emissions, also stipulated that 15 per cent of electricity should be generated by renewable sources by 2020.
E.ON has 21 onshore and offshore wind farms and is helping develop the tidal and wave power technologies.
