Economic experts call for EU tax shift
- Natural resources ,
- Biodiversity ,
Switching taxes from labour to pollution and use of natural resources could increase GDP and jobs as well as reduce harm to the environment, economists say.
The scenario follows ‘the polluter pays’ principle by introducing additional excise duties on fossil fuels and taxes on carbon, water and electricity for bulk users. The combined revenues would lower the tax burden on labour, the economists believe.
Independent Dutch think tank the Ex’tax Project Foundation worked with Cambridge Econometrics, Trucost, Deloitte, EY, KPMG and PwC to analyse the impact of such changes across the 28 EU member states.
By 2020, the shift would raise GDP across the bloc by 2%, create 6.6 million jobs and reduce carbon emissions by 8.2%, the study found.
Trucost calculated that the shift would be worth more than €1.1bn in avoided health problems from air pollution, greenhouse-gas emissions, land and water pollution, and health improvements from better water conservation. Social benefits worth more than €17bn would also be created, it said.
The Green Homes Grant is set to deliver only a fraction of the jobs and improvements intended, leading to calls for more involvement from local authorities in future schemes.
COVID-19 recovery packages have largely focused on protecting, rather than transforming, existing industries, and have been a “lost opportunity” for speeding up the global energy transition.
None of England’s water and sewerage companies achieved all environmental expectations for the period 2015 to 2020, the Environment Agency has revealed. These targets included the reduction of total pollution incidents by at least one-third compared with 2012, and for incident self-reporting to be at least 75%.
The UK’s pipeline for renewable energy projects could mitigate 90% of job losses caused by COVID-19 and help deliver the government’s ‘levelling up’ agenda. That is according to a recent report from consultancy EY-Parthenon, which outlines how the UK’s £108bn “visible pipeline” of investible renewable energy projects could create 625,000 jobs.
Billions of people worldwide have been unable to access safe drinking water and sanitation in their homes during the COVID-19 pandemic, according to a progress report from the World Health Organisation focusing on the UN’s sixth Sustainable Development Goal (SDG 6) – to “ensure availability and sustainable management of water and sanitation for all by 2030”.
The UK will no longer use unabated coal to generate electricity from October 2024, one year earlier than originally planned, the Department for Business, Energy & Industrial Strategy has announced.
The UK government is not on track to deliver on its promise to improve the environment within a generation and is failing to stem the tide of biodiversity loss, a damning new report from MPs has revealed.