Blog: Deeds not words matter most when tackling climate change

With less than three months before the crucial climate change talks in Paris, MPs will have plenty of opportunities to show whether their warm words on the urgency of action are more than just hot air.

When it comes to avoiding dangerous climate change, the shift to clean, renewable energy is key.  And it’s deeds not words that matter the most - at local, national and global level.

The first test of politicians’ climate credibility will happen later today, when MPs vote on a clause in the Finance Bill that would tax renewable energy as if it were a fossil fuel - by removing the climate change levy exemption for renewables. 

As Friends of the Earth have pointed out, this senseless Treasury proposal is like making people pay an alcohol tax on apple juice.  

Under the current policy, when a business or public sector organisation gets their energy from clean renewable sources rather than dirty polluting power, they pay less tax.

Ministers claim that the change is intended to prevent taxpayers’ money from supporting renewable electricity generated overseas. Yet, in reality, ditching the renewable energy exemption is a completely disproportionate measure that turns a policy designed to encourage low-carbon electricity into no more than an electricity tax for businesses. 

Overall, its bad news for energy bill payers, bad for jobs and investment in the UK’s renewable energy industry, and bad for efforts to tackle climate change.

Modifying the policy to fix this anomaly would be acceptable, but ditching it completely harms home-grown renewable energy businesses and undermines efforts to tackle climate change.  No wonder it’s received widespread condemnation on environmental and economic grounds.

Before summer recess, MPs had a chance to vote against this change, announced in the Budget. That would have prevented it getting into the Finance Bill in the first place.   Unfortunately, all but 7 Labour MPs abstained. The good news is that the voices saying it’s ridiculous to make renewables pay a climate change levy have multiplied. And prominent Labour figures are among them.  

So, here’s our second chance. If Labour MPs vote against this clause, we could secure one small win against Osborne’s onslaught against common sense climate policies.

Labour have tabled an alternative amendment that would require a review into the impact of removing the clean energy exemption on the renewable energy industry and our chances of meeting carbon budgets. That’s worthwhile - and I’ve given it my backing - but ultimately too weak. If MPs want to demonstrate climate credibility, they should vote to remove this clause from the Finance Bill altogether.

 

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