The Liberal Democrats have backed a controversial campaign to channel billions of pounds of carbon taxes into energy efficient retrofits.
The Energy Bill Revolution calls for carbon revenue, levied against greenhouse gas emitters, to be used to fund a major energy efficiency programme to upgrade the homes of those in fuel poverty.
Supporters claim it could have a greater impact than the flagging Green Deal scheme, which this week revealed there were just 12 signed Green Deal plans in existence, as well as help create thousands of jobs.
The Lib Dems voted to back the campaign at their party conference through the Green Growth, Green Jobs policy paper, making it one of their official party policies. They are the first major party to back the campaign, which is now supported by more than 150 organisations, including construction firms Carillion, Willmott Dixon and the UK Green Building Council.
"If carbon taxes are spent on energy efficiency upgrades, the UK would benefit from a boost in economic growth, increased employment opportunities, the elimination of fuel poverty and a vast reduction in the UK’s carbon emissions."
Brian Berry, Federation of Master Builders
The Federation of Master Builders is one of the campaign’s most recent signatories. Commenting on the announcement, Brian Berry, FMB chief executive, told CM: “Even if the Green Deal does eventually maximise its potential, it’s not an approach suited to all households and it will only ever help deliver part of the necessary carbon emission cuts from existing homes. Any government must recognise that the policy levers used to target those who can afford to pay for retrofit work will be different from those used to target the low income households who can’t.
“If carbon taxes are spent on energy efficiency upgrades, the UK would benefit from a boost in economic growth, increased employment opportunities, the elimination of fuel poverty and a vast reduction in the UK’s carbon emissions. It’s encouraging to know that the Lib Dems have officially voted through this policy commitment. Our attention now turns to the Labour and Conservative Parties, which we urge to do the same,” added Berry.
There are currently 6.3 million households in the UK in fuel poverty, where more than 10% of income is spent on energy bills. By 2016 the Energy Bill Revolution forecasts this could rise to as many as 9.1 million, or one in three households.
There are two main carbon taxes: the European Emissions Trading Scheme and the Carbon Floor Price, used by the government to help combat climate change and wean the UK off fossil fuels.
The campaign claims there is enough carbon tax revenue to treat 600,000 fuel poor
households every year, providing each of them with a grant worth on average £6,500 to install energy efficiency measures. This would reduce their energy bills by an average £310 a year.
If the government was to recycle this revenue back to households, the campaign claims it could take nine out of 10 homes out of fuel poverty, lowering bills and cutting carbon emissions.
