Greenhouse Gas Emissions: Tax Strategy

Lord Ravensdale Excerpts

Tuesday 6th July 2021 Lords Chamber

[Baroness Penn (Con)]

My noble friend is absolutely right that our climate strategy extends beyond tax. That is why the Prime Minister’s 10-point plan mobilises £12 billion of government investment to create and support up to 250,000 highly-skilled green jobs. Crucially, we hope that it will also spur over three times as much private sector investment by 2030.

[Lord Ravensdale (CB)]

My Lords, I declare my interest as a director of Peers for the Planet. The Energy Innovation and Carbon Dividend Act, which is currently passing through the US House of Representatives, proposes a carbon tax that rebates all revenue from the tax back to households. What assessment have the Government made of such a mechanism, which would help low and middle-income households and may be key to ensuring public support for, and the success of, new carbon taxes?

[Baroness Penn (Con)]

My Lords, the Government look with interest at initiatives taken across the world to tackle this important issue, particularly around maintaining public support as we transition to net zero. The receipts that the Government raise through their environmental taxes already help to fund all of the Government’s public spending commitments; these include £500 million in grants to those buying zero-emission or ultra low emission vehicles to make them cheaper to buy and incentivise the transition to a cleaner option.