Campaigners have accused the CBI of derailing environmental change

Friends of the Earth (FoE) has accused the CBI of "routinely exaggerating" the cost of regulation, and lobbying hard to prevent it.

However, the CBI has roundly dismissed the allegations.

It branded the environmental group's claims "a selective and disingenuous attempt to blacken the CBI's name".

"The CBI claims to be the 'voice of business', - but it isn't," FoE executive director Tony Juniper said.

"The reality is that there are many business voices but the government seems to be in thrall to the CBI, accepting its claims at face value."

What we are against is bad or excessive regulation which makes it more difficult or costly for businesses to do the right thing CBI

The group also claimed that the government had caved in to CBI pressure to increase the UK's greenhouse gas allocation by 20 million tonnes a year - despite the prime minister pledging to tackle the issue.

High costs?

FoE added that that there was little evidence to back up the CBI's claims that increased regulation meant higher costs.

In fact, such arguments ignored the benefits that could come from increased scrutiny of environmental practises, FoE said.

"The UK could become a world leader in the development of clean technology, but the Government needs to provide leadership through regulatory frameworks rather than constantly cowering to the CBI," Mr Juniper added.

However the CBI dismissed the group's allegations saying its research is respected by the UK government, agencies and institutions across the world.

"Other organisations may rant and rave and make outlandish claims but fortunately their claims are rarely taken too seriously," CBI deputy director general John Cridland said.

The group also dismissed claims that it had worked to obstruct measures aimed at improving the environment, saying it supported "ambitious" government targets of cutting greenhouse emissions by 60% by 2050.