Vehicle Excise Duty: Carbon Dioxide Emissions

Baroness Kramer Excerpts

Monday 29th June 2015 Lords Chamber

[Lord Ashton of Hyde]

I was referring to vehicle excise duty which, under the system introduced in 2001, simply addresses the amount of carbon produced. It does not promote one form of car over another: it just incentivises less carbon.

[Baroness Kramer (LD)]

My Lords, given the goals of tackling climate change, getting clean air and developing an ultra-low-emission vehicle industry in this country, where we have a chance of becoming a leading manufacturer, would it not be wise to continue to make sure that VED benefits are targeted at the ULEV sector so that we do not lose the advantages we have gained, since we do not yet have a sustainable market?

[Lord Ashton of Hyde]

The noble Baroness is correct that we should encourage vehicles that produce low emissions. The Government are investing in a wide range of measures to help improve air quality. Since 2011, the Government have committed more than £2 billion in measures to reduce transport emissions. These measures will address both nitrous dioxide emissions and particulates.