Carbon tax wanted to accelerate net zero transition

Greener Transport Solutions is calling on the Government to introduce a universal carbon allowance to help households cope with the cost-of-living crisis and accelerate the transition to net zero.

It wants the Chancellor to introduce a universal carbon allowance for every individual in the UK funded by putting a carbon price on everything we consume. 

Individuals on higher incomes would pay more in carbon tax through all the goods and services they buy, while receiving the same fixed allowance as those on lower incomes, it says. 

According to the Treasury’s Net Zero Review, higher income households consume three times more carbon than lower income households. 

Claire Haigh, founder and CEO of Greener Transport Solutions, said: “The transport sector on its own cannot achieve net zero. It’s clear that we urgently need a new approach. We need a solution for the whole economy.  

“The current crises we face all demonstrate that we must break our dependency on fossil fuels. 

“If we are to wean ourselves off fossil fuels, we must price properly for carbon. This will generate the revenue needed to tackle the cost-of-living crisis. 

“Record high fuel and energy prices are a game-changer. We urge the Chancellor to seize the opportunity to tackle the cost-of-living crisis, shore up our energy security and accelerate the transition to net zero at the same time.”

Greener Transport Solutions has published the Pathways to Net Zero report, which draws out the key conclusions of the Pathways to Net Zero Roundtable Discussion Series held in March-April 2022.