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Decisive action needed to meet CO2 target

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31 October 2005

The Government should keep its manifesto promise to cut carbon dioxide (CO2) emissions by 20 per cent below 1990 levels by 2010, according to a report published today (Monday) by the Institute for Public Policy Research (ippr). The target, whose future currently looks uncertain, can be met if the government takes decisive action.

ippr proposes a package of measures to cut emissions from industry, households and transport, including:

A tight cap on emissions from UK industry in the second phase of the EU’s new carbon trading scheme;
Council Tax rebates to encourage households to take up energy saving measures like loft and cavity wall insulation;
Increasing the differentials between road tax bands to at least £50 and a new top band for gas guzzlers.

ippr argues that all government departments, including the Treasury and the Office of the Deputy Prime Minister, should share responsibility for the Public Service Agreement target to cut greenhouse gas emissions.

The report shows that the UK’s CO2 emissions have risen in the last two years and are now only four per cent below the 1990 level. The research also shows that the UK is only just on course to meet its target under the Kyoto Protocol to cut greenhouse gas emissions by 12.5 per cent, including CO2 and other gases, and will fall well short of the target for CO2 if nothing is done.

Tony Grayling, ippr associate director and report author said:
"The Government should keep its manifesto promise to cut carbon dioxide emissions by 20 per cent by 2010. Some industry lobbyists are calling for the target to be dropped. But ministers should listen to the many business leaders calling for stable long term policies to secure investment in low carbon technologies rather than the usual suspects resisting change. Far deeper emissions cuts will be required in future to combat climate change. It is in Britain’s economic interests to get ahead of the game. The UK Government also has an important global leadership role on climate change, especially during this year when it holds the presidencies of the G8 and EU. Credibility abroad requires action at home."

Download Climate Commitment: Meeting the UK ’s 2010 CO2 Emissions Target by Tony Grayling, Tim Lawrence and Tim Gibbs

Notes to editors:
The Labour Party’s manifesto for the 2005 general election said: "We remain committed to achieving a 20 per cent reduction in carbon dioxide emissions on 1990 levels by 2010, and our review of progress this summer will show us how to get back on track."

The Government’s review of the UK Climate Change Programme is due to be completed by the end of the year.

The EU’s carbon trading scheme, which started in January, covers carbon dioxide (CO2) emissions from power stations and heavy industry, around half of all EU (and UK) emissions.

Following the Gleneagles G8 summit in July, energy and environment ministers from G8 and major developing countries are meeting in London on Tuesday 1st November to discuss co-operation on policies and measures to develop low-carbon technologies.

The DTI’s updated emissions projections published in November 2004 suggested about a six per cent shortfall from the 2010 target, corresponding to excess emissions of about 10 million tonnes carbon equivalent (10 MtCe). In the summary below ippr shows how its proposals can make up that shortfall:

Measure / Estimated annual CO2 emission saving by 2010 (MtCe)

EU Emissions Trading Scheme / 5.0
Climate Change Levy (reformed and increased) / 0.9
New Climate Change Agreements (by which industries agree to cut emissions and get an 80% discount on Climate Change Levy) / 0.3
New Building Regulations / 0.7
Energy Efficiency Commitment phase III (home energy saving) / 0.4
Community Energy (district heating) / 0.4
Renewable Transport Fuel Obligation (biofuels) / 0.9
Vehicle Excise Duty (increase differentials between bands + new top band for gas guzzlers + compulsory labelling) / 0.6
Company Car Tax (extend number of bands + ratchet up emissions standards) / 0.2
Smarter Travel Choices (‘soft’ measures like school and workplace travel plans to cut car use) / 0.6
Total / 10.0