December 8, 2010
- A d v e r t i s e m e n t
The economist said the UK would have to contribute around £1.5 billion from 2020 to a new ‘green fund’, that is expected to be set up during global talks on climate change in Cancun this week.
The Treasury is unlikely to set up new mechanisms to raise such a small amount of cash.
Therefore it is better to raise ten times as much and use just ten per cent for the green fund. The rest can be used as the Government sees fit.
Lord Stern said an extra £15 billion could be raised in taxes on polluting industry and power from coal, gas and petrol. Although the levies will be directly on factories or power stations, eventually it will come down to the consumers.
“People would see these tax rises through electricity, through cars,” said Lord Stern.