Yesterday's pre-budget report presented a great chance to Alastair Darling to fire the starting gun on a clean energy revolution, given that the combination of impending economic meltdown and climactic chaos facing us provide an historic opportunity to invest billions in a low-carbon, smart technology future.
But rather than take that opportunity - by encouraging the development of a new UK manufacturing base capable of exporting renewables and energy efficient technologies to the world, and creating hundreds of thousands of green collar jobs in the process, the Chancellor blew it.
Instead, he focused on traditional tax-cutting measures to keep the old economy afloat, offering VAT reductions across the board instead of directing them towards low-carbon technologies and energy efficient products. He has yet to grasp that, in the words of Greenpeace director John Sauven "green taxes aren't higher taxes or lower taxes, they’re smarter taxes and can help make our economy more energy efficient."
More evidence that the penny has yet to drop came with his proposal to protect the aviation industry by scrapping proposed changes to Air Passenger Duty. He could have chosen to tax flights instead of people, which would have encouraged the industry to fill their planes instead of flying half-empty jet liners around the world. But once again it looks as though the aviation industry will be given a free pass at a time when its contribution to climate change is rising.
And, apart from an announcement of some new money for loft insulation, there was little indication that energy efficiency was high on his agenda. Energy efficiency solutions - for lighting, insulation, appliances - are relatively low-tech but absolutely central to reducing emissions, and they are an area which could certainly benefit from smart taxation and fiscal policies. Neither was there anything about the "super grid" which will be needed to replace our existing antiquated system if we are to successfully link up diverse renewable sources of energy and reduce emissions.
Of course, all is not yet lost. The pre-budget report is simply the Chancellor’s chance to explain in advance the measures he’s likely to be taking in next springs full budget, and to update his economic forecasts. So it's more an indication of his thinking rather than something absolutely set in stone. Let's hope that by the time he comes to formulate the budget itself, he will have grasped the potential of smart-tech climate solutions to get us out of this recession and make us economically competitive for the coming century, and begin directing money and financial incentives towards the genuine solutions to the problems which we face.
