Christian Aid says it is deeply disappointed after MPs voted down proposals to set a decarbonisation target in the Energy Bill.
The cross-party amendment would have committed the UK to developing a near carbon free power sector by 2030.
Christian Aid said the defeat of the amendment undermines the low carbon energy sector and efforts to tackle climate change, including its effect on communities in the developing world where climate change is already being experienced.
Dr Alison Doig, Christian Aid's Senior Climate Change Adviser, said MPs had only increased confusion for the industry and destabilised investment across the energy sector.
She questioned the Government's commitment to the UK's climate change target.
"There are no winners, just continued uncertainty," she said.
"Christian Aid is part of a wide coalition of 55 organisations, including major trade associations, industry, investors, church groups and NGOs calling for MPs to act to put the UK on track to become a world leading low-carbon economy.
"We believe this is too important to give up on. There is time for this decision to be put right and for clear signals to industry to be put in place.
"The impacts of climate change and our unsustainable thirst for fossil fuels is already threatening some of the world's poorest and most vulnerable people through increasing drought, floods and climate disasters."