DAVID Cameron was accused of dealing a blow to hopes of an explosion in “green” jobs in a Commons clash over energy generation.

Ministers saw off a rebellion by Liberal Democrat and Tory MPs who demanded a clear target to remove carbon emissions from Britain’s electricity generation, by 2030.

The target was dumped from the Energy Bill at an early stage, after the Government claimed it would hamper businesses at a time of economic difficulty.

But furious critics warned the door will be left open for dirty coal and gas power stations to stay in operation for decades – blowing away Britain’s climate change targets.

And more than 100 businesses had warned they would not invest in renewable energy – and create vital green jobs - without the certainty of the ‘decarbonisation’ target.

An amendment to set the target, backed by 15 Lib Dem and eight Conservative rebels, was defeated by 290 votes to 267 after a Commons debate.

Tim Yeo, the leading Conservative who tabled the amendment, said: “This could mean that urgently needed investment in our energy infrastructure will be slower and the risk of a capacity crisis greater.”

And Caroline Flint, for Labour, said: “This is a humiliating failure by the Liberal Democrats and a betrayal of David Cameron’s promise to be the greenest Government ever.

“The failure to back a decarbonisation target means businesses will choose to invest and create jobs elsewhere.”

Mr Yeo said the House of Lords still had a chance to amend the Bill, adding: “I urge my colleagues to continue the fight.”

But Michael Fallon, the Conservative energy minister, accused campaigners of relying on “blind faith”. A decision on a target will now not be made until after 2015.

Alex Dawson, chief executive of Billingham-based TAG Energy Solutions and chairman of North-East renewables group, Energi Coast, said: “The Energy Bill debate surrounding decarbonisation continues to reaffirm the importance low carbon resources such as offshore wind will play in the UK’s energy mix.

“However, continuing delays to the Bill becoming law continues to put investment in the sector at risk causing uncertainty among supply chain companies, which have invested in their operations ready to meet the challenges of the emerging renewables industry.

“Politicians should not forget the commitment supply chain companies have made to the industry and I would urge them to drive through the Energy Bill as quickly as possible. “It will create a more confident environment for investors and operators, which will, in turn, provide considerable opportunities for supply chain companies that make a significant contribution to the UK economy.”