MPs propose carbon tax to encourage green investment

News Article - 22 February 2010
Category: Environment

MPs have urged the government to introduce new measures, such as carbon taxes, to raise carbon prices to levels that could more easily facilitate green investments. The recommendations have been made in a report by the Environmental Audit Committee (EAC) which also warned the government the EU's Emissions Trading Scheme was failing to boost green investments following a fall in carbon prices to €15 a tonne.

According to Tim Yeo, chairman of the EAC, the recession has left many big firms with large carbon allowances which have, in combination with other factors, pushed down carbon prices. With such low prices per tonne, firms are insufficiently incentivised to invest in eco-friendly projects to lower carbon output. MPs argue prices closer to the €100 mark are needed to drive green investments.

The cap-and-trade system used in the EU has been proposed by supporters for global use, yet other countries are facing stiff opposition to its implementation. Barack Obama has proposed a similar scheme but opinions are divided. Friends of the Earth have called the report from the EAC, a 'nail in the coffin' of the ETS scheme and called for a greater reliance on energy efficient measures and greater regulation.

The government has committed to an 80% reduction in carbon output levels by 2050 on 1990 levels, and will inevitably look to businesses - the biggest producers - to invest in technologies to achieve this. As the climate change agenda develops and a greater range of measures are introduced to combat the problem, businesses may find themselves under increasing pressure to 'do their bit' and reduce carbon output levels.

Access are advising UK businesses on the ways carbon-reporting software can develop the robust infrastructure necessary to cope with the demands of the climate change agenda. Companies making long-term projections must consider the impact of carbon reduction on resources, particularly the ways in which government schemes may impact everyday operations. Reporting carbon emissions gives businesses the power needed to analyse the most carbon-intensive divisions and drive behavioural change in the areas where it is most needed.

For more information, please call Access on 0845 345 3300.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »