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Climate Change: Fuel Duty

Volume 687: debated on Monday 18 December 2006

asked Her Majesty's Government:

What is their assessment of the extent to which their proposals for fuel duty increases, announced on 6 December, will meet global warming and pollution targets. [HL678]

The Chancellor announced in his Pre-Budget Report statement an inflation-based rise in fuel duty, of 1.25 pence per litre. This was implemented from midnight on 6 December. Inflation increases are already factored into government forecasts for global warming and pollution targets and therefore this increase does not impact on these. However, if rates had been frozen, we forecast that carbon emissions would have been 0.16MtC higher in 2010-11 (or 0.15MtC higher on average over the next five years).