News from Isle of Man Friends of the Earth - 17th Feb 2010

Where this story received coverage:
Isle of Man Newspapers
Manx Radio
Manx.net
IsleofMan.Com

The Stern Report into the economic impacts of climate change said all nations should invest 1% of GDP on climate change adaptation year-on-year to deflect much greater costs (up to 20% of GDP) in the future.

Treasury Minister Allan Bell should be using carrots & sticks to help people prepare for the future: incentives to green-businesses & new technologies - using money raised by taxing those who just 'waste' energy.


Golden opportunities missed in IoM Budget

Golden opportunities to raise much needed revenue, and protect the Isle of Man from climate change have yet again been ignored by Treasury Minister Allan Bell. The 2009 - 2010 Budget failed to mention a single green tax, or other measure that would promote low carbon lifestyles.

Phil Corlett, Co-ordinator of Isle of Man Friends of the Earth said, 'The Isle of Man has yet again identified itself as the only Western nation failing to acknowledge the challenge of global warming.'

In 2006 the Stern Report clearly identified the need for investment to prepare for the worst impacts of climate change. Stern calculated that an investment of 1% of GDP each year would mitigate the worst impacts of climate change, but that doing nothing would mean spending at least 10% of GDP each year to offset the effects by 2020. Since then Stern has revised his cost assessment upwards.

The Stern Report has provided the basis for climate related economic planning for every nation - except the Isle of Man. Currently there is no strategic or economic vision that will deliver climate change adaptation or mitigation on the Island. ^{Note 1}

'By failing to address climate change in any way Mr Bell is running the risk of enormous economic impacts in the future. Economists believe the cost of dealing with climate change will overtake health, education and home affairs and become the main expenditure for Government within twenty years. The impact of this will be enormous, requiring either steep tax increases, or drastic cuts in other services. The VAT crisis will seem like nothing in comparison.'

At the start of the global recession Prince Charles reminded us that the need to tackle global warming is more urgent than ever before and the world must not lose sight of the bigger picture. Since then, in the UK, there have been more tasters of the weather damage to come. Recent unprecedented flooding in the north west closed roads and swept bridges into rivers. The huge cost of these repairs help to illustrate the scale of investment necessary. Strengthening infrastructure is much cheaper than rebuilding it.

Small green steps Mr Bell could have taken:

* Through green taxation Mr Bell could have raised revenue by targeting those who waste CO2. By introducing small charges on polluting businesses, either active or registered on the Isle of Man he could raise funds and send a clear message that the Isle of Man is joining other nations in taking the threat of climate change seriously.
* He could have offered no cost tax breaks for new environmental businesses.
* He could impose climate duties on those travelling to and from the Isle of Man by 'plane.
* He could substantially increase road taxes and introduce road use charges, especially for more heavily polluting vehicles; zero rate electric vehicles; and impose car parking charges to make public transport more economically attractive.^{Note 2}
* He could have introduced Government carbon-budgeting to ensure reductions in CO2 and energy expenditure.
* He could have provided additional incentives for the MEA to invest in wind power - for example by introducing a tax on all energy produced using fossil fuels, hypothecated for investment in renewable energy projects.
* By introducing a new higher rate of income tax he could have raised revenue for use across Government, including the necessary investment in strengthening our vulnerable infrastructure.

END

Note 1 - Although the Acclimatise Report was commissioned in 2006, very little action has been taken to implement recommendations at a Government level, and no action has been taken to educate the general public about challenges of global warming.
Note 2 - Recent increases in road duty could hardly be called substantial, costing around the same as a quarter tank of petrol in a gas guzzler.