UK – Tax Breaks for Wasting Energy

The UK has ambitious plans for reducing greenhouse gases  and Prime Minister James Cameron aims to lead the greenest government ever. However, a report of the OECD highlights some major inconsistencies in British environmental policies, namely in the way energy is taxed. While pushing for substantial reductions of CO2 emissions (-20% until 2020) VAT for energy is still only 5% compared with 20% for other goods.

Quiet unlikely that this tax scheme will incite any households to save on energy, invest in insulation or renewable energy. If they become more energy-efficient it is to the contrary despite of UK tax policy! Cameron’s government does not seem to understand that in order to achieve his goals, a simple switch to sustainable energy production is nice but just not good enough. Getting clean won’t be possible without getting more efficient and as brutal as that may sound without cutting back on absolute energy consumption. Another thing that many politicians still don’t get is the fact that raising energy taxes and invest in energy efficiency is worth it. Individuals net-save on energy bills and the nation is far better off paying billions to local craftsmen and renewable industries than to oil imports bankrolling authoritarian regimes.

Source: Guardian

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