Businesses face the prospect of a new tax if the Conservatives regain power as the party aims to get the ‘green vote’.
Tory leader David Cameron is proposing the introduction of a levy on carbon fuels in a bid to reduce emissions.
However, Cameron says that he also wants to abolish the climate change levy and says that his policy would do a better job of cutting emissions.
Meanwhile, chancellor Gordon Brown will call on the G7 to promote greater energy efficiency.
He too will set out measures to combat climate change, suggesting that both the UK’s main political parties are convinced the environment is a vote winner.
Cameron, who reportedly plans to put a wind turbine on the roof of his house, is calling for ‘a new green revolution’ of the Conservatives.
He said: “Of course it (climate change) presents huge challenges. Of course the issues are complex. Of course it will require us to change.
“But when I think about climate change and our response to it, I don't think of doom and gloom, costs and sacrifice.
“I think of a cleaner, greener world for our children to enjoy and inherit.
“I think of the almost unlimited power of innovation, the new technologies, the new products and services, and the progress they can bring for our planet and all mankind.”