Another piece in this newsletter discusses Gordon Brown’s statement in the same week that total UK emissions from all sources may need to fall to no more 155m tonnes by 2050.

The disjunction between government policies on aviation and climate change is startling.

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Video conferencing has been around for a surprisingly long time. AT&T ran the first call in 1927. Since then, pundits have been consistently predicting that video conferencing was just about to take off. They have been wrong for eighty years. Why should we believe the techno-optimists now?

In the last year, several companies have launched video conferencing products that provide an experience similar to real meetings. The quality is surprising and even sceptics have begun to see the advantages of using a meeting room for an hour rather than spending three days going to Hong Kong and back. Cisco’s Telepresence product is generating enthusiasm that is tempered by the enormous costs of setting up the equipment and providing the bandwidth. But the company says that prices will fall dramatically over the next few years.

Is this going to be enough to get people out of planes? The signs are good. Even low bandwidth alternatives suitable for home use are getting praise from the experts. So if Cisco doesn’t make video conferencing work, Bay Area start-ups like VSee will probably start eating into the market for lower cost products.

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The Association was caught in a dilemma. It didn’t want to give its valuable imprimatur to foods that caused climate damage but neither did it want to impoverish poor tropical communities.

It carried out a detailed and thoughtful consultation with stakeholders. It seems a model of its kind. The consultation produced a consensus that air freight was only acceptable if the products were farmed in a way that brought development to the local community. In essence the Association is saying that only ‘Fairtrade’ products will be able to carry its valuable label. It won’t be enough just to meet the ordinary standards for organic agriculture.

Peter Melchett, the policy director of the Association, said that the ‘results of our very widespread consultation show that most people in the North and the South say that they only support air freight if it delivers real environmental and social benefits. The linking of organic and ethical or Fairtrade standards does that’.

The Soil Association will now move to ratify this decision, which went against central government advice, at least as expressed in a recent speech by a minister.

In the same press release it also announced a move to involve the Carbon Trust in providing a ‘footprint’ for organic foods (please see the article on organic food and carbon emissions in Carbon Commentary Newsletter #1). It said it would move towards carbon labelling of organic foods (please see the article on Tesco and Wal-Mart in Carbon Commentary Newsletter #2 for reasons why we think this is a mistake).

In a slightly surprising move, it also announced that it would seek to ‘actively encourage people to eat less meat’. Since beef cultivation is an important source of emissions, this makes good sense, but the Association is taking a risk by suggesting people should change their diet.

It also intends to review whether heated glasshouses are appropriate recipients of organic labels. This last point is well overdue. The carbon footprint of a food from a Dutch heated glasshouse is likely to be far greater than an air-freighted equivalent grown in the tropics.

The APD proposal attracted most attention. The government intends to change the duty so that it is levied on aircraft movements and not on individual travellers. Commentators, and the two main opposition parties, have long suggested that this would be a sensible change. Carbon Commentary disagrees. The proposed revision cannot be implemented without infringing international treaties on the taxation of air travel. The chancellor’s proposed consultation will eventually conclude that APD should remain substantially as it is now.

In the article, we briefly analyse the effects of APD and also show that the duty imposes an effective tax on airlines that is greater than would be levied if air travel were fully included in the European Emissions Trading Scheme (ETS).

The BERR Carbon Capture and Storage (CCS) announcement was worryingly unspecific. It did not even bother to mention a figure for the value of the financial support. It also upset some major companies by only allowing entries for the competition from a limited range of technologies. The government is extremely vulnerable to the charge that it is back in the business of picking winners.

CCS is an extremely important part of any strategy for national reduction of emissions. The UK should be throwing far more money at research and development into the various forms of CCS. The simplest and quickest way to get innovation in CCS would be to include carbon storage as a technology that qualifies under the renewable obligation rules. We need to remove the difference between the financial treatment of renewable power generation and carbon capture. Both achieve the same outcome and both should have the same reward.

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This article analyses the Lib Dem proposals. It shows that the Lib Dems are prepared to use the price mechanism to choke off increasing demand for aviation. The party also contemplates extending the Emissions Trading Scheme beyond the 50% of the economy currently covered. On the other hand, it makes completely clear that it has no intention of raising the prices of energy and fuels to domestic consumers.

Although the party presents itself as the only UK political institution ready to grasp the need for an economy-wide carbon price that will bring down emissions by 30% in 2020, the detailed proposals are far less radical. In the material that follows, I try to tabulate the Lib Dem ideas, focusing on whether they use price, regulatory fiat or pious hope as the proposed means of emissions reductions. As in the Conservative paper, estimates of the costs and benefits of their policies are almost completely absent from the Lib Dem paper. It is a shocking commentary on British politics that no major party is prepared to quantify exactly how it proposes to shift taxes towards polluting activities and away from other sources.

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