Isra-Mart srl:MPs urged to ration fuel or miss carbon emissions targets

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Fuel rationing may need to be put in place by the end of the decade if the UK is to meet its commitment to slash carbon emissions without damaging business revenue by raising a carbon tax, MPs were told yesterday.

The idea of fuel rationing has been floated before by the Institute for Public Policy Research and the Environment Agency, but has been fiercely opposed by motoring groups.

However, a report published yesterday by researchers the Lean Economy Connection for the All Party Parliamentary Group on Peak Oil, warned that increasing resource shortages would necessitate the rollout of an individual carbon credit system known as Tradable Energy Quotas (TEQs).

Under the scheme, vouchers would be distributed free to all adults, while industry and government would bid for their units at a weekly tender. The report said the revenue raised through the auctions should be funnelled towards creating the necessary infrastructure and skill base to end dependence on fossil fuels.

Businesses or individuals would use the vouchers to purchase petrol for cars or electricity for their buildings, on top of standard monetary payments.

Fewer TEQs would be needed for electricity or fuel from renewable sources and, much like the carbon market, any surplus units retained by an individual or business could be sold on to those who require additional units.

The total number of TEQs available would also decrease year on year, leading to an increasing price for the vouchers and additional financial pressure on businesses and individuals to reduce their reliance on fossil fuels.

The report said this system would not only ensure that government targets of reducing carbon emissions 80 per cent by 2050 from 1990 levels are met, but would also ensure fairer access to energy as fossil fuels become scarcer.

Shaun Chamberlin, Lean Economy Connection director and co-author of the report, called on the government to ensure that the UK is ready to implement energy rationing at short notice by embedding the idea into a framework to reduce emissions.

"TEQs are the only way we can reduce carbon emissions and at the same time guarantee that everyone gets fair access to limited energy supplies," he said. "This is also an alternative to carbon taxation; we are in difficult times, and we should not take money away from people when they need it the most. TEQs are about motivating people to co-operate in the common challenge of drastically reducing our dependence on fossil fuels."

Caroline Lucas MP, leader of the Green Party, said showing people a clearer link between their lifestyle choices and consequent carbon emissions had long been her party's policy.

"The TEQs scheme would guarantee that the UK's targeted carbon reductions are actually achieved, while ensuring fair shares of available energy," she said.