Published on: 15th June 2022 by Greener Transport Solutions.
  • Cost of filling an average family car with petrol has hit £100 for first time
  • Inflation is set to hit 14% for poorest households
  • Global GHG emissions must reduce by 43% by 2030 to avoid climate catastrophe.
  • Higher income households consume three times more carbon than lower income households
  • Reducing energy demand could deliver up to 70 per cent reduction in GHG emissions by 2050

Greener Transport Solutions is calling for the 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 war in Ukraine means that oil and gas prices have risen sharply, whilst food prices have hit record highs.  Last week the cost of filling up an average family car with petrol hit £100 for the first time.  40% of households will be at risk of fuel poverty when the energy price cap increases to £2,800 in October.  Inflation is expected to reach 10% later this year.  For poorer households, inflation will rise to 14%.

On 26th May the Chancellor announced a £21 billion package to help households with their energy bills.  However, further measures are likely to be needed by the autumn. How does the Chancellor ensure the right level of targeted support for those who most need it whilst avoiding inflationary pressures in the economy?

Greener Transport Solutions is urging the Chancellor to develop a strategy to tackle the cost-of-living crisis that will accelerate the transition to net zero and protect our energy security.  He should introduce a universal carbon allowance for every individual in the UK funded by putting a carbon price on everything we consume.

This would be a very progressive measure.  Individuals on higher incomes would pay more in carbon tax through all the goods and services they buy, whilst receiving the same fixed allowance as those on lower incomes.  According to the Treasury’s Net Zero Review, higher income households consume three times more carbon than lower income households.

The IPCC has warned “now or never” if world is to avoid climate disaster.  To avoid overshooting 1.5C global emissions must peak before 2025 and fall by 43% by 2030.  Such rapid emissions reduction is possible but only if every sector of the economy is targeted. Reducing energy demand across all sectors could deliver a 40-70 per cent reduction in greenhouse gas emissions by 2050.

Today Greener Transport Solutions publishes the report on its ‘Pathways to Net Zero’ roundtable discussion series investigating how to decarbonise transport.

The key conclusion is that we are not seeing anywhere near the scale of change needed to achieve our net zero targets for transport.  Lack of leadership and lack of joined-up thinking undermines net zero ambitions.  Spending is skewed towards road building and unsustainable transport policies.  We are still building car dependent housing developments.  Urgent focus is needed on traffic reduction.

Claire Haigh, Founder & CEO of Greener Transport Solutions commented:

“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.”


For further information

‘PATHWAYS TO NET ZERO: Report on a Roundtable Discussion Series’ is published by Greener Transport Solutions on Wednesday 15th June 2022

Notes to Editors:

  1. About Pathways to Net Zero

Technological solutions will be insufficient to hit net zero in the UK.  We also need to reduce car kms travelled by at least 20% by 2030.  A series of ‘Pathways to Net Zero’ roundtable discussions were held in March-April 2022 to discuss how to deliver the traffic reduction required to achieve our net zero targets for transport.

The key themes and questions for discussion were set out in the report PATHWAYS TO NET ZERO: Building a framework for systemic change, published by Greener Transport Solutions on 10th March 2022.

  1. About Greener Transport Solutions

Greener Transport Solutions is a not-for-profit organization dedicated to the decarbonisation of transport.  We aim to transform our communities into cleaner, greener, less congested and more prosperous places to live and work, where greener transport is the affordable and desirable choice for everyone

About the Author

This post was written by Greener Transport Solutions.