Greener Transport Solutions calls for universal carbon allowance

In the wake of rising fuel costs, Greener Transport Solutions is calling for the UK chancellor to introduce a universal carbon allowance to help households cope with the cost-of-living crisis and accelerate the transition to net zero.

The group is proposing a strategy to both tackle the cost-of-living crisis as well as accelerate the transition to net zero and protect the country’s energy security. The plan involves introducing a universal carbon allowance for every individual in the UK, funded by putting a carbon price on everything consumed. 

Claire Haigh, founder & CEO of Greener Transport Solutions, says: “The transport sector on its own cannot achieve net zero. It’s clear that we urgently need a new approach. We need a solution for the whole economy. 

“The current crises we face all demonstrate that we must break our dependency on fossil fuels. If we are to wean ourselves off fossil fuels, we must price properly for carbon. This will generate the revenue needed to tackle the cost-of-living crisis. 

“Record high fuel and energy prices are a game-changer. We urge the Chancellor to seize the opportunity to tackle the cost-of-living crisis, shore up our energy security and accelerate the transition to net zero at the same time.”

Greener Transport Solutions argues that the proposals would be very progressive in taxation terms with individuals on higher incomes paying more in carbon tax through all the goods and services they buy, while receiving the same fixed allowance as those on lower incomes. It points to data from the Treasury’s Net Zero Review which shows that higher income households consume three times more carbon than lower income households.