§ Mr. Heathcoat-AmoryTo ask the Secretary of State for the Environment, Transport and the Regions (1) what is the estimated annual reduction in CO2 emissions in (a) 2000, (b) 2005 and (c) 2010 from continuing the duty escalator on road fuel; [77839]
(2) what is the estimated annual reduction in CO2 emissions in (a) 2000, (b) 2005 and (c) 2010 from the increase in hydrocarbon duties on road fuels implemented in the 1999 Budget. [77838]
§ Dr. ReidThe fuel duty escalator is a long-term strategy introduced by the last Government whose impact on transport emissions can be expected to build up over time.
The escalator is also part of a package of measures to reduce emissions, particularly of CO2, through the promotion of fuel efficiency and reduced congestion. Taken on its own, increasing fuel duty by six per cent. per annum in real terms between 1996 and 2002 is currently estimated to reduce 2010 road traffic CO2 emissions by between 2 and 5 million tonnes of carbon, as set out in the Climate Change Consultation Paper.
Estimates of the incremental contribution of a single year's duty increases towards the savings estimated for the strategy as a whole are even more difficult. On average, however, we calculate that each year of the 369W escalator contributes between 0.3 and 0.75 million tonnes towards the savings estimated in 2010 for the strategy as a whole.