Cameron proposes new carbon tax
April 21, 2006
The energy tax on business should be replaced with a levy focused on cutting use of carbon fuels, Tory leader David Cameron is due to say.
The Conservatives have long called for the climate change levy to be scrapped and Labour has challenged them to reveal their alternative plan.
Mr Cameron said his planned replacement would better distinguish between high and low carbon production of energy.
His call comes during a trip to Norway to see the effects of global warming.
In a speech marking the end of his trip, the Tory leader is expected to state his ambition for the Tories "to lead a new green revolution".
The political parties are engaging in a battle for the "green" vote, with Chancellor Gordon Brown using a speech in New York to call for a global response to the problem of global warming.
Labour and the Liberal Democrats have accused the Conservatives of providing only warm words on the environment, not substantive policies.
Caroline Lucas, a principle speaker for the Green Party, said she welcomed Mr Cameron's words but said "the real proof of the pudding will be in what he delivers", adding that the Tory leader currently presented "a pretty empty canvas".
Mr Cameron is trying to counter such claims by giving more details of his environment strategy.
Avoiding 'catastrophe'
In his speech in Norway, Mr Cameron will say: "Of course the issues are complex. Of course it will require us to change.
"But when I think about climate change and our response to it, I don't think of doom and gloom, costs and sacrifice.
"I think of a cleaner, greener world for our children to enjoy and inherit."
Mr Cameron will say it is not too late to avert a catastrophe and everybody has a duty to try.
He wants a new carbon levy to replace the climate change levy.
He is asking his quality of life policy group to consider whether it should be a business tax or operated through the market by encouraging low carbon energy production through tradeable credits.
"Under a Conservative government, the climate change levy will be replaced by a more effective method of reducing carbon emissions, as part of an overall framework of carbon pricing right across the economy," he will promise.
'Financially neutral'
Mr Cameron's trip was organised by wildlife charity WWF.
Chief executive Robert Napier said making speeches was not enough to make a difference.
"What's key now is that he comes forward with some very specific policy proposals and proposals for action," he said.
Mr Cameron will also propose making activities which cause more carbon emissions cost more while cutting costs for lower polluters.
The net effect of the measures will be financially neutral, he will say.
The climate change levy was introduced in 2001. There are discounts for companies which sign climate change agreements.
In his Budget speech, Mr Brown said 10,000 businesses have signed the agreements because of the charge.
And through the Carbon Trust, which is funded by the levy, 3,000 businesses had reduced their emissions.
But the Tories say carbon emissions have risen in each of the past three years, despite falling in the 1990s.
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