A green tax shift could decrease UK emissions by over 30% by 2020 and bolster low-carbon jobs and competitiveness, according to a report by the Green Fiscal Commission (GFC).
The study shows that a green tax could allow the UK to meet its statutory carbon emission reduction goals and facilitate the development of low carbon industries and employment, creating 455,000 new jobs.
The report, which is the result of over two years of research, says that a green tax shift or Green Fiscal Reform (GFR) imposes more taxes on pollution and environmental degradation and less on jobs, incomes and profits.
GFC director Paul Ekins said a tax shift would be popular as it is effectively taxing a social evil, pollution.
“This is not just about reducing emissions, but helping the UK to develop low-carbon competitiveness,” said Ekins.