Partner Article

Government over-reliant on volunteers to grow Green Economy

The Government is too reliant on voluntary action to grow the low carbon economy, which is preventing it from achieving its growth potential, according to a parliamentary group.

According to the Environmental Audit Committee, Britain needs a clear policy, or it is unlikely that they will attract the billions of pounds of investment needed to develop cleaner energy sources and reduce reliance on imported fossil fuels.

In the report the Government was also criticised for being too soft on businesses, and over-relying on consumer demand to stimulate growth in environmentally friendly goods and services.

The report said: “Placing no new requirements on business, the government’s market-led approach is too focused on voluntary action.

“Relying on consumer demand to simulate the green economy will not work.”

The Government has set binding targets for greenhouse gas emissions over four five-year periods to 2027, which are designed to put the nation on track towards an 80% cut in emissions by 2050.

Despite this however, the Government has delayed their decision on the introduction of mandatory emissions for larger businesses.

The report accused the Government of being “incredibly short sighted” for failing to give businesses clear incentives for reducing emissions, especially as fossil fuel prices will continue to rise in the future.

MP Joan Walley, chair of the committee said: “Making businesses report their carbon emissions is one of the first steps we need to take on the road to a green economy, so it will be a key test of this government’s green credentials.”

Green investment must play a key role in the country’s economic recovery, but the report expressed concern that the Treasury views the environment as a costly obstacle to economic development.

However, the Committee have recommended that the Government view tax revenue spent on new policies as a long-term investment rather than a cost. They also advised them not to eliminate sensible environmental legislation when reducing 10,000 pages of regulatory guidance.

She added: “If this process reduces bureaucracy and improves outcomes, as the government claims, then we will support it.

This was posted in Bdaily's Members' News section by Ruth Mitchell .