Cut in VAT on domestic energy increases pressure on CO2 policy

The go-ahead given to the Chancellor by the European Commission to cut VAT on domestic energy will increase the UK's annual carbon dioxide emissions by almost one million tonnes, according to a parliamentary answer from Environment Minister Michael Meacher. The Government will have the first international test of its climate change policy at the EC Environment Council in June, when greenhouse gas targets for 2005 are due to be agreed.

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