Call for UK to have Carbon Border Tax
THE Government should introduce a Carbon Border Tax to stop the UK hiding its true emissions, the Centre for Policy Studies (CPS) has said.
Imposing a Carbon Border Tax on the steel, coal and electricity sectors would reduce global emissions and allow the Government to better support domestic industries, the CPS said.
While the Government is taking their commitment to cut greenhouse gas emissions to net-zero by 2050 “seriously”, the importing of electricity, carbon-intensive goods and raw materials from overseas allows some carbon emissions to be hidden, a paper produced by the think tank said.
The CPS added that agreeing a Carbon Border Tax as part of the upcoming COP26 agenda offered a chance for Britain “to show global leadership”.
The Government’s policy of cutting greenhouse gas emissions to net-zero by 2050 did not address the increasing offshoring of emissions, the paper said.
It added that emissions from imported goods and raw materials including coal, steel and electricity were not included in UK statistics which allowed the UK to continue to use energy generated from fossil fuels and other energy intensive products while appearing to meet emissions targets.
“Carbon offshoring” not only hid the real picture in terms of emissions, but also discriminated against companies which were subject to climate levies such as the Carbon Price Floor, the study, entitled The Great Carbon Swindle, said.
It added that while the use of coal power in the UK had been slashed, the country was importing millions of tonnes from overseas for industrial use, particularly in the steel industry.
The proposed tax could be calculated with reference to the electricity mix of the exporting country and would incentivise other countries to invest in nuclear or renewable energy, the CPS said.
Dealing with the most carbonintensive imports would help put an end to carbon leakage, but also cut Britain’s global greenhouse gas footprint, the CPS said.
CPS research fellow Tony Lodge added that if the Government failed to act, there would be “more hidden pollution, fewer jobs, insecure power supplies and more global emissions”.
Mr Lodge, said: “Britain’s new legal commitment to cut greenhouse gas emissions to net-zero by 2050 carries Herculean responsibilities to decarbonise the energy, transport, industry and housing sectors.
“A Carbon Border Tax would provide a far more accurate picture of Britain’s true carbon footprint, deter carbon offshoring and reduce global carbon emissions.
“It would also establish a clear British policy lead on climate change as the COP26 summit approaches.”