The government has been urged to make its CRC business energy efficiency scheme clearer.
The Committee on Climate Change said the scheme is a good way to encourage firms to lower their business energy usage but it is perceived as being too complex.
David Kennedy, chief executive of the committee, said ministers should make a decision within the next few months to give clarity to businesses across the country taking part in the initiative.
Greg Barker, minister for energy and climate change, said he plans to "simplify the bureaucracy of the CRC scheme".
The CRC Energy Efficiency scheme was launched in April to encourage around 5,000 businesses that spend more than £500,000 a year on energy to monitor and report their emissions, as well as buy allowances of every tonne of carbon they produce.
The scheme is expected to help reduce Britain's greenhouse gas emissions by four million tonnes and lower business energy bills by £1 billion a year by 2020.
If you want to find out more about your energy options and how you could save up to £468 in minutes, click here.