Archived press release

Climate change must be tackled in budget

11 March 2005

Friends of the Earth is calling on Gordon Brown to put climate change at the heart of next week's Budget to demonstrate that the Government is serious about tackling an issue described by the Government's Chief Scientific Officer as a bigger threat than terrorism. The day before the Budget the Chancellor is to give a keynote address to a roundtable of leading international energy and environment ministers [1].

The Government has promised to put climate change at the top of the international agenda this year during the UK's chairing of the G8 and Presidency of the EU [2]. But despite UK Government promises to make significant cuts in carbon dioxide levels, emissions have not declined under Labour and it has admitted that it is not on track to meet its target of cutting emissions of carbon dioxide by 20 per cent by 2010 from 1990 levels [3].

Gordon Brown could demonstrate his commitment to tackling climate change by:

• Pledging to introduce an annual carbon budget - to report annually on progress in reducing carbon dioxide and say what economic measures will be introduced to keep reductions on track.
• Taking action to reduce emissions from transport - making gas-guzzlers more expensive, using price differentials to support fuel from renewable sources, and introduce fiscal measures to tackle unsustainable aviation growth.
• Making it cheaper and easier for individuals to cut emissions - measures such as reducing stamp duty on energy-efficient homes, VAT reductions on energy efficient products and grants to help people install renewable energy in their homes (micro-wind, solar panels, etc).

Friends of the Earth director Tony Juniper said:

"We are delighted that the Chancellor is due to make a key note speech on climate change. Global warming is the biggest threat the planet faces, and threatens the live and livelihoods of millions of people across the world, especially in developing countries. His speech is an opportunity to set out how it is possible to tackle global warming while maintaining a strong economy. His vision could be an important inspiration to other countries. And putting climate change at the heart of his Budget will show that he really means business."

Friends of the Earth is also calling on the Chancellor to adopt a range of measures in the Budget to combat climate. Measures should include:

• the establishment of annual `carbon accounts' for the UK. This would assess progress towards UK carbon dioxide reduction targets;
• reforming Vehicle Excise Duty (VED) to reduce tax on the most fuel efficient vehicles, and increase it for gas-guzzlers. Friends of the Earth wants Mr Brown to introduce four new road tax bands - with £50 between each band - to encourage people to buy less-polluting cars. VED for the most polluting cars should be raised to £500 per year (within 5 years), with the cleanest, most fuel-efficient cars charged no VED (starting now);
• introducing measures to force retailers of road and heating fuels to substitute fossil fuels with renewables;
• encouraging householders to go green. This should include financial incentives for installing renewable energy - such as solar panels - in the home; stamp duty reductions for energy-efficient homes and VAT reductions on energy efficient products;
• increasing fuel duty in line with inflation - at the very least - each year; with the money raised used to promote real alternatives - better public transport and streets safe for walking and cycling, particularly for children;
• raising air passenger duty, to start tackling the spiraling environmental damage from aviation;
• making retailers of road and heating fuels to substitute fossil fuels with renewables;

Further details on Friends of the Earth's blueprint for a green Budget.

Notes

1. Government press release

2. Tony Blair has previously described the threat of climate change as "so far-reaching in its impact and irreversible in its destructive power, that it alters radically human existence" - speech 14 September 2004.

3. UK emissions of carbon dioxide currently stand at only 7.5 per cent below the 1990 baseline, the same as when Labour came to power in 1997. In December Environment Minister Margaret Beckett announced a review of the UK Climate Change Programme, and admitted that current policies would fail to achieve Government promises to reduce carbon dioxide levels to 20 per cent below 1990 levels by 2010 [3].

4. Press release on Friends of the Earth's submission to Climate Programme Review:

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Published by Friends of the Earth Trust