Delivering on environmental goals
Action to achieve environmental goals remains a high priority for the Government in the current economic circumstances. The Government is putting in place policies and investment to support a low-carbon recovery, with new jobs and businesses created through green growth. Government policies are driving £50 billion of investment in the low-carbon sector over three years. The Climate Change Bill introduces a legally binding target to cut greenhouse gas emissions by at least 80 per cent by 2050, the most ambitious in the G7, building on the Government's plans to deliver a one-third reduction in emissions from 1990 levels by 2020.
The 2008 Pre-Budget Report contributes to meeting the UK's ambitious long-term environmental goals while supporting low carbon growth, by:
- introducing a green stimulus, ensuring part of the fiscal stimulus supports low-carbon growth and jobs by accelerating £535 million of capital spending on energy efficiency, rail transport, and adaptation measures;
- retaining the Renewable Obligation by at least ten years to provide financial support for large-scale renewable electricity ensuring investors can plan with confidence for the future;
- successfully securing inclusion of aviation in the EU Emissions Trading Scheme from 2012, and holding Europe's first Phase II carbon auction on 19 November 2008;
- following a fall in pump prices of over 20 pence per litre from their summer peaks, the postponed two pence per litre fuel duty increase will go ahead on 1 December 2008;
- installing 600,000 insulation measures this winter, up 70 per cent on last winter, through the £6.8 billion Home Energy Saving Programme, half of which is funded through energy companies, to help households save up to £300 a year on energy bills and reduce carbon emissions;
- continuing to provide a clearer environmental signal through reform to vehicle excise duty, while ensuring that no driver in any given band will pay more than £5 extra in 2009 or £30 extra in 2010;
- reforming air passenger duty from 1 November 2009, moving from two to four distance bands to improve environmental signals. The Government has decided not to proceed with a per-plane tax in order to ensure greater stability and protect competitiveness at a time of economic uncertainty.