- Carbon tax a critical lever to help shift the UK towards a clean green economy
- Tax yield will help deliver social dividend by funding cheap and accessible public transport, free home insulation, and a basic income
The Green Party is calling on the UK to announce a carbon tax at COP26, describing it as one of the greatest levers to drive change in society.
Greens propose the tax should start at £100 per tonne of carbon dioxide released, rising to £500 per tonne by 2030.
The tax would apply to all carbon emissions, but the tax yield would provide a ‘dividend’ which would prevent poorer people being hit with higher costs. It would in part be used to fund a Universal Basic Income for all and help those on lower incomes meet the costs of transitioning to a carbon free future.
The party estimates the UK will be responsible for around 800 million tonnes of CO2 equivalent in 2021. Its proposal for a carbon tax and dividend, starting at £100 per tonne of CO2e, would mean up to £80 billion would be generated, which could then be used to invest in the big changes needed for a rapid transition to a zero carbon economy, and to support UK residents through the transition.
Adrian Ramsay, newly-elected co-leader of the Green Party, said:
“A carbon tax is one of the greatest levers we can apply to help shift us towards a clean green economy and fairer society.
“Just 100 companies have been responsible for three quarters of the world’s greenhouse gas emissions since 1988. A carbon tax would target these big polluters, particularly energy and oil companies, and render coal, oil and gas financially unviable as cheaper renewable energies rise up to take their place.
“But as well as tackling the climate crisis, a carbon tax will offer a social dividend which will help the UK to genuinely become a more equal society. Carbon tax yields will provide funds to invest in cheap and accessible public transport, free home insulation, and a basic income.
“A carbon tax is a win-win for the climate and for social justice. We urge the government to show true leadership and introduce such a tax as a key plank of its COP26 strategy.”
A spokesperson for Carmarthenshire Green Party added:
“A carbon tax presents us with a once-in-a-generation opportunity to tackle fuel poverty in Carmarthenshire. The number of people struggling to heat their homes and pay their fuel bills is well above the national average. A carbon tax would help reduce reliance on dwindling and expensive fossil fuels, and raise much needed funds to ensure the most vulnerable – especially single pensioner households and those in the private rental sector – stay warm this winter.”
