Carbon tax system 'needs to change'

The current carbon tax system needs to be reformed, it has been suggested.

According to economy campaigner at Friends of the Earth Simon Bullock, the existing rules which determine how much businesses are taxed for their energy usage are outdated.

He stated that doubt over costs makes it difficult for companies to reduce carbon emissions.

Mr Bullock added: "It's very difficult for businesses to plan strategies on how much energy to use if they've no idea, from one year to the next, how much they're expected to pay."

The campaigner's comments were made in response to the Changing the Climate for Manufacturing report from EFF released last week, which called for reform to the government's climate change policy.

EFF suggested that an economy-wide carbon tax based on energy use would offer businesses more certainty over what carbon emission goals they should achieve.

In the report, the manufacturer's organisation estimated that carbon tax applied to the domestic sector would generate £1.7 billion every year for the economy.

Posted by Lauren Steadman