Liberal Democrat leader Nick Clegg’s plans to incentivise the “greening” of businesses are “bureaucratic and inefficient” and offer no guarantee of cutting carbon emissions according to classical liberal think tank, Progressive Vision.

Shane Frith, director of Progressive Vision, said;

“If we’re serious about encouraging companies to become more environmentally friendly, we should shift taxation away from business rates, profits and income and on to carbon emissions.

“But offering rebates to firms for insulating their roofs or promising to switch off their lights overnight is bureaucratic and inefficient. It could require an enormous squad of local council paper-pushers, visiting every local business and ticking boxes on a lengthy form.

 “Perversely, it would be entirely possible for a company to benefit financially if they introduced energy efficient equipment but actually increased their total level of carbon emissions.

 “The simple straightforward and sensible way of rewarding businesses for being green is to introduce a carbon tax. This would encourage companies to find their own innovative ways of reducing energy, without necessarily having to comply with a list of action points issued by the Liberal Democrats.”