Leading article: A turning point for Britain
The Government places too much faith in the power of the market on its own to mitigate climate change
Wednesday, 14 March 2007
Something unusual has happened in British politics. On social issues, David Cameron's Conservatives seem to believe in the power of exhortation to effect change. They argue that the state must take a back seat. The Government believes the opposite, and its record over the past decade has demonstrated a faith in an active state. Yet when it comes to the approach of the two parties to climate change, these positions are reversed. Here, it is the Tories who are making the case for a more activist approach from the state, while the Government seems content to offer gentle persuasion.
Tony Blair has done a good job in pushing the issue of climate change up the international agenda. The G8 meeting in Gleneagles in 2005 was a serious effort to get the fast-growing developing nations of the world, such as China and India, to the negotiating table. When regime change finally occurs in the White House, there is a reasonable chance that a successor to the Kyoto protocol can be implemented. But for all of this good work abroad, Mr Blair has achieved little on climate change at home.
Britain may be on course to exceed our emission-reduction targets under Kyoto. But in recent years, the UK's emissions have been rising again. In this context the publication of a draft Climate Change Bill yesterday that will set out a target of reducing the UK's carbon emissions by 60 per cent on 1990 levels by 2050 is, of course, welcome. If this Bill is passed, Britain will become the first country to have reductions targets enshrined in law. It will establish an independent committee to monitor progress, with the prospect of sanctions if governments fail to meet the targets. The Bill will also introduce powers for the Government to bring sectors such as transport into emissions trading schemes.
All this is good news. But it is worth remembering that the Government would never have brought forward yesterday's Bill were it not for the fact that green issues, so often highlighted by this newspaper, have finally risen to the top of the political agenda. And we should bear in mind that the Bill simply sets a target to hit in the future. It contains none of the contentious measures that will actually be needed to bring emissions down, let alone annual targets. Even if one accepts the Government's argument that a cap and trade system is the right approach, ministers will have to set very strict caps to achieve results. That will be when the tough decisions have to be made.
In truth, the government approach places too much faith in the power of the market on its own to mitigate climate change. Market mechanisms are only one aspect of the solution. Yet all we have been offered in terms of subsidy, taxation and regulation - the traditional policy levers open to governments - is tinkering and posturing.
Gordon Brown proposed this week to phase out wasteful standby modes on electronic equipment and encourage energy efficiency in homes. These are good ideas, if not particularly revolutionary. And the Chancellor's boasts of having increased road tax and air passenger duty smack of complacency on environmental matters. Neither is high enough to be any sort of disincentive. In fact, they actually discredit the green cause because the public regard them, with good reason, as stealth taxes.
The Tories are by no means beyond reproach on the environment. It is disturbing that senior party figures such as John Redwood and Liam Fox have been questioning the science underpinning climate change. And Mr Cameron is misguided in pledging the tax proceeds from new environmental taxes to "supporting the family". This only serves to fuel scepticism in some parts of the electorate that politicians are using the threat of climate change to increase taxes.
It is also dangerous that Mr Cameron continues to pander to Eurosceptics. The European Union is an ideal forum for collective action on environmental issues. But at least the party's leadership is now willing to put forward bold measures at home, matching its words with deeds. The Tories' latest consultation on air travel proposes fuel duty on domestic flights and a tax on frequent fliers.
The Government has shied away from such controversial action. Mr Blair argues that if Britain alone stopped polluting overnight it would have no effect on the overall process of climate change. Mr Brown argued that unilateral action to tax aviation more would merely punish British industry and consumers. These are weak, circular and defeatist arguments. Sir Nicholas Stern's report made it abundantly clear last year that we have a relatively small window of time in which to act. It is incumbent on the developed world - including Britain - to take a lead. We must move to a low-carbon economy - and soon. Targets are merely the starting point.
At the heart of the problem is the fact that the Government is still playing politics with climate change. The basis exists for a cross-party consensus to bring in the necessary tough measures. The Tories and the Liberal Democrats both lobbied hard for annual emissions targets to be included in this Bill. The Government refused and, wrongly, chose instead five-yearly targets. Both opposition parties are in favour of increasing the price of flying. This is a golden opportunity for the Government to act in a bold and visionary way, but instead they missed an opportunity in a benevolent political climate.
The unveiling of this Bill was a historic moment for British politics. We should see it as such. But, oh, how much more momentous a day it could have been.



