Business leaders need a stable, pro-enterprise environment to fuel investment, innovation and competition in the energy sector.
The CBI says this will play an essential role in helping the UK grow out of austerity.
The industry organisation suggests the government should step up support for low carbon investments by setting a clear and regular pipeline for Contracts for Difference auctions and should strive to make billing processes more transparent.
The group also calls for the freezing of carbon price support until 2022, allowing the energy sector to decarbonise while maintaining competitiveness for energy-intensive businesses.
Additionally, it claims establishing an Industrial Energy Efficiency Scheme , would also allow significant cost savings and growth to be made across a number of sectors.
Carolyn Fairbairn, Director of the CBI, said: “Last week’s Clean Growth Strategy provided a welcome direction of travel and now the energy industry needs the underpinning policy stability and certainty to support investment and innovation.
“To make a real difference, politicians need to work with companies in the interests of consumers, putting a real emphasis on engagement and energy efficiency.”