Manufacturers may face a hike in operation costs as proposals to put up carbon prices are addressed to the government.
Westminster’s environmental audit committee has called on the government to propose a new minimum price for carbon, with the possibility of a carbon tax, in order to increase funds for green investment.
If the proposals are passed, carbon prices could be raised from their current value of 15 euro (£13) a tonne to around 100 euro.
The committee claim that low carbon value is meaning that fewer businesses are opting for green alternatives, hindering the UK’s chances of cutting its CO2 emissions.
"Emissions trading should be helping us to combat climate change, but at the moment the price of carbon isn’t high enough to make it work," said chairman Tim Yeo.
An increase in fuel prices may hurt manufacturers who operate heavy-duty machinery such as chain and flight conveyors and en-masse elevators.
The bioenergy and biofuels market is set to be one of the biggest growth sectors in the UK as many firms try to power their engines using sustainable sources.