Energy tax will be good for us, new report says

The proposed Climate Change Levy will benefit both the economy and the environment, says a new study carried out for the World Wide Fund for Nature.

The Levy, set to come into effect from April 2001, is a key part of the government's strategy for meeting agreed reduction targets for greenhouse gases. Preliminary figures indicate it will increase energy costs by about 10%.

On the positive side, this report projects that one spin-off from the tax could be a reduction in the amount of carbon poured into the atmosphere in the UK by one million tonnes in the first year.

In addition, says climate change programme head Dr Ute Collier, the levy "will help encourage innovation, enhance competitiveness and deliver new employment opportunities" - all as a result increasing government income and pressures to find new energy efficiency techniques.

The WWF says the sectors that will benefit most include health, education, construction and railways.

Elliott Chase