A new levy on single-use coffee cups could see more plastic ending up in landfill.
That's according to Retail Excellence, which says the Government should re-think the proposed new charge.
The group says the 20c levy sends the 'wrong message on sustainability'.
It also argues that mixed messages are being delivered at at time when the cost of living is soaring and retailers and consumers cannot afford another levy.
A recent survey shows 80% of retailers believe it is important for their businesses to become more sustainable.
But Duncan Graham, managing director of Retail Excellence, told Breakfast Business the levy could have unforeseen ramifications.
"We are concerned about the unintended consequences that this Circular Economy Bill could have on business.
"The bill at the moment, it's going through the Dáil, and it's allowing for a levy of a minimum 20c to be placed on the price of items that are sold in paper-based containers.
"So in other words coffee cups and related items.
"So that's - in effect - adding a minimum of 20c on the price of a takeaway coffee at a time when coffee shops have seen a massive spike in the cost of doing business".
He says while moving away from single-use items is 'laudable', the timing is off.
"There was a UK study recently that said that only 6% of people were likely to move to keep cups, whereas 8% would choose not to buy at all.
"So there's a really big impact, potentially, on business.
"This means a move away from paper cups - which are recyclable and often compostable - towards plastic cups, which would only end up in landfill".
And he believes the Government should be focusing on the recycling element.
"We should be looking at more recycling points around the country, we should be looking at more effective sorting of waste, we should be raising awareness that paper cups are recyclable".