This is the letter I wrote to my MP Thangham Debonairre about this very exciting and important development:
I wish to draw your attention to a report just published by the Policy Exchange advocating the carbon tax and dividend policy that I discussed with you last year. I have provided the link (at the end of this email) and would be very grateful if you could read the report and give me your opinion, and how Labour might take this forward. I know you are committed to measures that maximise our chance of mitigating the damaging effects of climate change, and the approach laid out in this study looks to address the fundamental flaws with the current approach that show that we are unlikely to achieve the reduction targets agreed in the Paris Climate Change accord.
As the report states in the Executive Summary :
‘An economy-wide carbon tax would generate significant revenues, but alone could simply be a regressive and unpopular tax that penalises consumers. This flaw can be corrected by redirecting the proceeds of carbon pricing directly back into the pockets of the people:
• We recommend that the revenue from carbon taxation should be directly returned to the populace in the form of a carbon dividend in order to give voters an immediate interest in the fight against climate change and lock in carbon taxation as a political imperative.
This would turn an otherwise regressive and unpopular carbon tax into a popular and even populist policy that promotes more inclusive economic growth and enables the vast majority of UK citizens to benefit financially from this new climate solution.’
Full report here :
The official launch was supposed to be last week, but was postponed due to ‘unforeseen circumstances’. I hope to attend when it is rescheduled.
There is a campaign currently in preparation around the above – watch this space!