News Article - 14 January 2010
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The head of the Financial Services Authority has made calls for green taxes to be used to punish carbon-intensive environmental practices. Adair Turner, known for his outspoken views and criticism of City activities, encouraged the party that wins the general election to pursue a programme of tax and spending to green the economy and create more jobs.

Lord Turner insists the new government should focus tax increases to stimulate and maintain the development of a green economy. He argues that tax increases could make problem areas of high carbon-intensity, such as overuse of fossil fuels, less attractive to businesses. In addition, targeted spending rather than spending cuts should be utilised to both reverse recession and develop a greener economy. Insulating peoples’ homes, for example, would provide jobs to the construction industry, which has been hit hard by the economic downturn.

Lord Turner is not the first to advocate green taxes: a recent report by Chancellor Alistair Darling argued that up to half a million jobs could be created by the green economy over the next decade. The Chancellor also pledged to incentivise corporate investment in renewables in his pre-Budget report. Tax rebates for the installation of solar panels and wind turbine programmes have been announced, and electric cars will be exempt from company car tax for the next five years.

With the general election looming, carbon reduction is expected to sit higher on party agendas. Investment in renewables is a ‘hot’ topic, and both the major parties have already pledged support for green initiatives to attract voters and dominate opinion polls. Worldwide, efforts to stimulate a greener economy are set to increase ahead of the UN climate change summit in Mexico in December, widely seen as the last point a binding global commitment on climate change can be reached.

As the climate change agenda becomes more complicated, businesses may struggle to keep up with what is required of them regarding their carbon footprint. Organisations should ensure they are able to track their carbon output to build up a reliable picture of where the most carbon-intensive areas of operation are. This data is able to show where savings can mostly likely be made, ensuring businesses pursue the most strategic climate change policies. If taxation is used to deter those who maintain carbon-intensive activities, organisations pursuing a scalable and focused climate change policy will be in the best position to gain a favourable market position.

Access carbon-reporting software offers reporting functionality across the business, and breaks down data by individual and division, giving detailed statistics and full control over an organisation’s carbon output.

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