From April, construction and manufacturing firms will have to switch to pricier so-called white diesel.
Pointing out that concrete is the most widely used material in the world after water, Mr Emerson said an increase in diesel costs would have to be passed on to the consumer."I see a big, big hit on the construction industry in the next year or two," he said.
Mark Spence, managing director of the CEF, said it would do nothing to help reduce carbon emissions but would "significantly increase the risk of business failure in our sector". Although agricultural machinery like tractors and diggers will still be able to run on red diesel, concerns have been raised about farmers in Northern Ireland who also use that machinery for construction purposes.