The climate negotiations preceding the climate talks in Copenhagen are finding the negotiations difficult and agreement hard to reach. There is a real danger that global temperatures could rise significantly by about a quarter of a degree Celsius over the next five years causing climate changes which will lead to significant hardship for many people around the world. At the same time Britain is in recession and the government is spending far more than it receives in taxation.

In this financial situation the government may be right to be borrowing heavily but there is a better option. As a general rule the left of the Labour Party is prepared to make the tough decisions which are necessary whilst opposing the capitalist path of New Labour. Essentially it has the necessary mind set to form a government. The present situation can be eased by the actions of the British government especially if it acts quickly.

The left should propose a carbon tax be introduced as an emergency measure with immediate effect. Industry should be exempt because Britain has a large trade deficit and does not produce enough industrial goods. Essentially as there is tax on motor fuel and aviation through the duty on airline passengers the only area that the tax could apply to is domestic gas and electricity. Since this is a regressive tax the poorer sections of the community will be hit hardest and they can be protected by not raising VAT in early 2010as this is an equally regressive tax. The carbon tax should be sufficient to raise at least an extra £100 per annum and possibly significantly more from the average family, equivalent to an extra £2 billion tax revenue.

The government can save further money by not subsidising renewable energy and allowing the generators to invest in energy modes of their choice. Hopefully this will lead to generators choosing energy investments which cause much lower emissions than at present and because UK domestic energy prices will be higher than those of other nations investors in new generational methods will invest in the UK. However the generators choice will be accepted whatever generational capacity they invest in.

No other rules will be introduced with these changes as there is already far too much detailed regulation.

These changes will hurt many people slightly but will be a significant stimulant to industry and create employment.

The United Kingdom should also offer a deal to further reduce emissions by mid 2010 in exchange for a good international climate deal at Copenhagen. What constitutes a good deal can be enlarged upon if necessary.

The United Kingdom can offer to cut greenhouse gas emissions very substantially by at least 40% to no more than 1.5 tons ofcarbon per head by mid 2010 compared with 2.5 tons at present. This will be done through carbon taxes and international agreement that we can tax aviation fuel and marine diesel.

Assuming that the situation arose where the UK were committed to reduce emissions to 1.5 tons per head by mid 2010 then it can be done in this timescale.

Essentially Industry and Agriculture would be exempt from a carbon tax because of our huge trade deficit. There will be a great simplification of taxes on energy users. All non carbon taxes, other than VAT, on motorists, airlines and airline passengers, and all other energy users will cease. There will be a carbon tax based on the amount of carbon emitted, though double for aviation emissions because of the additional damage they cause as a result of the altitude at which they are emitted, which will be applied equally to all forms of emissions. This will be set at the level required to cut emissions to 1.5 tons per head of carbon.

The tax hike will be very great and tend to be regressive so the minimum guaranteed income for the poor will need to be raised substantially, though of course there will still be a small fall in their living standards. There will be a significant fall in living standards for all but the poorest. A great advantage of such a scheme is that it will show us where the most important uses of energy really are, something which is not really known at this time. The UK economy will also gain in efficiency as compared with other nations. There will be many jobs lost and gained as a result of these changes and the net balance is probably unknowable until it is put into practise.

This is very much a summary of the situation. In some areas it will need to be enlarged on. I can enlarge on it as and when necessary, and the details will clearly be subject to a great deal of negotiation.

It is probably true that only the left in the British political scene can introduce these policies because the right and centre would not protect the poorest sections of the community making the whole plan politically and morally impossible because of the suffering caused to the poorest people. At the same time the left needs to react to this urgently otherwise it will be wiped out in the coming general election.

Victory for the Labour party seems very unlikely unless audacious policies of this type are proposed and pushed by the left.

John B Davies

John B Davies personal