Support for oil fund only if spent on reducing dependency

05 June 2008
Topics: Climate, Energy

Friends of the Earth Scotland today lent tacit support for an oil fund, on the condition that proceeds were spent on reducing oil dependency and increasing energy efficiency.

The campaigning group stressed that the Government must urgently invest in weaning our society off fossil fuels for both economic and environmental reasons. Any revenues would need to be invested in renewable energy, more efficient buildings and vehicles, and improved public transport to put the country on a pathway to a low-carbon economy.

Duncan McLaren, Chief Executive of Friends of the Earth Scotland, said:

"However large the commercial reserves of oil remaining in the North Sea, the reality is that it is still a finite resource, and to avoid the worst impacts on climate change we can't use it all up. Rising prices are pushing tens of thousands of people into fuel poverty, and this, combined with climate change, means we must urgently reduce our dependence on fossil fuels."

"Revenue from an oil fund, or a windfall tax on energy companies, would seem to be a good way to invest in the changes we need to make. However, we can only support an oil fund if the proceeds are spent on this aim. Money raised should not go on simply subsidising fuel costs. It's time to end our oil addiction."

"The only real long-term way to reduce energy bills is to ensure people need as little energy as possible, and any taxation system needs to be designed to ensure this. A regulator which smooths out price rises would be acceptable under such circumstances, however it should not be used to lower or freeze prices."

ENDS

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