CCL UK welcomes the government’s new commitment to cut carbon emissions to 78% of the 1990 level by 2035. It is also very good to see that the government is committed to tackling emissions from international aviation and shipping.
The Committee on Climate Change’s 6th Carbon Budget, published late last year, stated that this level of emission cuts was required to reach the goal of net zero emissions by 2050. The government states that it doesn’t wish to take the more draconian measures suggested in the 6th Carbon Budget.
Many commentators have rightly argued that it will be rather difficult to achieve the required emission cuts with current policies especially as 40% of our emissions come from households (which covers the emissions caused by heating our housing stock).
CCL believes that the most effective way to get and stay on course for net zero by 2050 is with a carbon pricing policy which sends a clear message to the market that there is no gain to be had by further investment in and use of fossil fuels. The UK currently has an ETS system which does not cover the emissions of the whole economy and depends on a lot of horse wrangling of free allowances and offset trading.
CCL policy also incorporates a dividend which then protects consumers from the inevitable rising prices. The dividend will benefit the majority of the population; especially the poorest third.