The business lobbying organisation has called on George Osborne to freeze the CFP from 2015/16 because they claim the additional payments being made by energy-intensive industries that operate internationally are putting them at a competitive disadvantage.
The CBI is also calling on the Chancellor to extend the Energy-Intensive Industry Compensation Package and to exempt combined heat and power from the CFP.
John Cridland, CBI director general, said: “It’s vital that we have a robust carbon price across Europe if we are to obtain the investment in energy infrastructure that the UK needs.
“At the same time, we need to recognise that British businesses, especially energy-intensive industries, are struggling with high energy costs so we want to freeze the CFP to help firms compete internationally, as well as ease pressure on household bills.”