Guernsey, one of the Channel Islands, is considering introducing a broad carbon tax as part of sweeping reforms to the island’s tax, pensions and benefits system, local media reported.
The tax, which would replace some of Guernsey’s existing taxes, could apply to most of the island’s CO2 sources, Environment Minister Deputy Yvonne Burford said last week.
“The mildly regressive impact of a carbon tax or similar could be compensated for by a comprehensive energy efficiency programme which would reduce energy consumption, improve the housing stock and address health issues resulting from poorly insulated and under-heated homes,” she said.
The idea, however, would attract public protest and be expensive to administer for an island the size of Guernsey, critics said.
Burford introduced a legislative amendment that orders proposals to be drawn up within a year to explore introducing new environmental levies or increasing existing ones.
The island, with population of around 65,000 people or nearly twice that of Liechtenstein, currently has a “width and emissions tax” that is levied on vehicles based on their size and CO2 output.
Guernsey and the rest of the Channel Islands are not covered by the EU ETS.