'Eco taxes' will make polluters pay

Monday, 26 October 2009 12:00 AM

By Alex Stevenson

A government-backed thinktank has claimed green taxes making those who pollute the environment pay more could help cut carbon emissions by nearly a third.

The Green Fiscal Commission (GFC) said the cuts could be achieved by 2020 if its 'polluter pays' tax shift was implemented. It claimed it could also create 455,000 new jobs.

Among the measures expected to be recommended were those forcing motorists not using environmentally-friendly cars pay significantly more through taxation. The worst-hit motorists could be paying £3,300 by 2020.

"This report adds the numbers to an issue that has frequently been discussed in more general terms," GFC chairman Robert Napier said.

"It shows that green fiscal reform could help put the UK on a low-carbon track and from that many positives will flow: reduced greenhouse gas emissions, extra employment, and new technologies which will help the UK economy all round."

Energy-efficient homes, cars and renewable energy schemes could cut emissions further at effectively no cost, the report adds. It suggests investing a small proportion of the revenues in these areas.

Tags:
• domestic policy
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• energy
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• environment
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• public services
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• road
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• transport