Source · Select Committees · Environmental Audit Committee
Recommendation 4
4
Paragraph: 26
Ministers should consider how best to encourage behavioural change towards more sustainable and ethical patterns...
Conclusion
Ministers should consider how best to encourage behavioural change towards more sustainable and ethical patterns of consumption. Subsidies, environmental tax measures and tax reliefs are some of the financial and fiscal tools available to government. The Public Accounts Committee has criticised the Government’s grasp of the potential for tax measures to bring about environmental change and has recommended that from the next budget, the Treasury should: assess the environmental impact of every tax change considered; and publish the expected environmental impact for each tax measure in the budget, including the extent of behavioural change, alongside forecasts for tax receipts. The Treasury have since rejected these recommendations as impractical and not cost-effective. We consider this to be a short-sighted approach; it will be more costly to the environment and the economy to not consider fully the environmental impacts of policy and tax changes. The approach calls into question the extent to which environment costings are properly considered in developing and setting tax policy.
Paragraph Reference:
26
Government Response
Acknowledged
HM Government
Acknowledged
to the free trade agreements which we are pursuing with various partners. Scoping and impact assessments for new Free Trade Agreements (FTAs) post-Brexit include both quantitative and qualitative assessments of the impacts on several aspects of the environment, including greenhouse gas emissions, air and water quality, and biodiversity. The Secretary of State for International Trade will work closely with other government departments to assess the environmental impacts of new FTAs, and to improve their coverage and approach. This includes developing methodological improvements and exploring further qualitative assessments, exploiting new data and evidence. For example, the UK-Japan Comprehensive Economic Partnership Impact Assessment included estimates of the impact of the agreement on UK greenhouse gas emissions (CO2 and non-CO2), UK transport emissions (aviation and maritime), and domestic consumption of fossil fuels. Relevant government departments contributed to qualitative assessments relating to biodiversity, water use and water quality, air quality, low carbon economy impacts, forestry and timber, resources and waste, fisheries and marine. feasibility using analytical evidence. The environmental impacts of trade arise from production, consumption, and transport, by many different actors in a complex supply chain. In addition, under the Agriculture Act, there is a duty for the Secretary of State for International Trade to report to Parliament on whether, or to what extent, measures in new FTAs relating to trade in agricultural products are consistent with maintaining UK levels of statutory protection in relation to human, animal or plant life or health, animal welfare and the environment. Further, the independent Trade and Agriculture Commission will scrutinise signed FTAs and inform Parliament’s understanding of whether the contents of an FTA are consistent with the maintenance of UK levels of statutory protection for the following: UK animal and plant health standards; UK animal welfare standards; and environmental standards as they relate to agricultural products. We are committed to tackling the illegal wildlife trade, and we are investing over £46m internationally between 2014 and 2022 to counter the illegal trade for the benefit of wildlife and communities. The financial sector has an important role to play in combating the illegal wildlife trade, including through the exchange of financial information to identify and tackle the illicit financial flows associated with illegal wildlife trafficking. The UK Government welcomes the work of the United for Wildlife Financial Taskforce, and as a signatory to the ‘Declaration of the United for Wildlife Financial Taskforce’, is committed to supporting its work. The United for Wildlife Financial Taskforce is a voluntary private- sector-led initiative and the UK Government cannot impose statutory membership obligations. However, we have encouraged greater participation by promoting the launch of the Taskforce’s regional chapters across Africa and Asia, which bring together relevant stakeholders from across the financial sector, to share information in order to tackle the illegal wildlife trade more effectively. Furthermore, at the 2018 Illegal Wildlife Trade Conference hosted by the UK Government, His Royal Highness the Duke of Cambridge underlined the importance of the role of the private sector in tackling illegal wildlife trade. Lord Hague of Richmond chaired a panel discussion during which private sector stakeholders were given the opportunity to showcase actions that they, and other private sector stakeholders, could do to help tackle illegal wildlife trade. Under our G7 Presidency we also secured commitment by the G7 to respond to the proposed actions in the Financial Action Task Force report on ‘Money Laundering and the Illegal Wildlife Trade’. This would help to identify, assess and address money laundering risks relating to illegal wildlife trade, and implement and strengthen registries of company beneficial ownership information, in order to provide better access to information for law enforcement agencies and competent authorities in tackling illicit finance.