Source · Select Committees · Environmental Audit Committee
Recommendation 34
34
Paragraph: 225
As the UK recovers from the immediate crisis, a shift towards green taxation could help...
Conclusion
As the UK recovers from the immediate crisis, a shift towards green taxation could help direct investment into job-rich low carbon activity, shift behaviour and increase resource and energy efficiency.
Paragraph Reference:
225
Government Response
Acknowledged
HM Government
Acknowledged
The Government recognises that it will need to act to maintain public finance sustainability as the UK transitions toward net zero, to ensure that Government can continue to fund other public service priorities. The Government also recognises the important role that taxation, alongside other policy levers like regulation and spending, can play in putting a price on environmental externalities, thereby encouraging businesses and consumers to reduce their environmental impact while directing private investment into clean technology. The Carbon Price Support, which taxes fossil fuels used in electricity generation, is recognised as one of the main drivers of the significant decline in electricity sector emissions and coal generation in Great Britain over recent years. Over the last decade, coal consumption