A survey of British business has delivered a damning
verdict on the Government's environmental policies. The study, carried out by
PricewaterhouseCoopers, concludes that "current economic policy
instruments to reduce the environmental impact of industry are not encouraging
sufficient behavioural change".
Some 71 per cent of respondents said that climate change
and environmental issues were affecting the way they conduct business. However,
almost half said that Government policy and economic instruments - taxes,
duties, the climate-change levy and investment allowances - are "not
effective" in encouraging business to "significantly" change its
behaviour. Of all the measures at the state's disposal, regulation is seen by
business as the most effective, with taxes ranked next and emissions-trading
schemes least favoured (though more liked by those involved in them).
The draft Climate Change Bill published in March proposed
a legally binding target of a 60 per cent reduction in CO2 emissions by 2050,
and a 26-to-32 per cent cut by 2020. The report suggests that business is
content with such aims, but that, in the words of one figure, "Government
needs to find a way of getting companies to do the right thing, but in a way
that doesn't penalise companies".
Legislation and regulation are the key driver for many, as
are fulfilling customers' rising green/organic demands and savings on fuel and
energy bills. Most are unhappy with the lack of a stable long-term framework
for environmental policy (unlike in economic policy), and are frustrated by the
lack of "joined-up thinking" between overlapping responsibilities of
officialdom.
Most of those who responded to the survey were "not
confident" about making long-term decisions in the current regime and many
were sceptical about the link between green taxes and environmental action. Arrangements
such as the EU's Emissions Trading Scheme were markedly more popular with those
participating in them, especially in the energy sector, than in the rest of
industry. Predictably, companies prefer carrots to sticks, with tax reliefs for
using renewable energy and low-emission cars rated highly.
When it comes to going carbon neutral - dismissed by some
environmentalists as "greenwashing" - only 3 per cent of companies
claim to have achieved it. A majority opposed road charging, with the stiffest
resistance coming from the retail sector. Business people owned up to a failure
to identify a key individual with responsibility for green issues in their
organisations.
John Manning, head of environmental tax and regulation at
PricewaterhouseCoopers, said: "The appetite for dealing with the
environmental consequences of doing business has never been greater. "We
know that some instruments work more effectively than others. Business needs a
clear and meaningful framework if it is to take the important action needed to
combat global warming." Michael Roberts, for the CBI, responded: "It
is vital that the Government gives firms a straightforward, long-term,
framework to make green decisions in."
(By Sean O'Grady, The Independent, 05/07/2007)
