Personalised carbon rationing would hit food suppliers

The Food and drink supply chain could be in for a big shock if carbon rationing of individuals moves from being an environmentalist's dream to a...

The Food and drink supply chain could be in for a big shock if carbon rationing of individuals moves from being an environmentalist's dream to a mainstream government policy to curb greenhouse gas emissions.

Environment minister David Miliband is considering this radical approach to dealing with the threats posed by climate change. Under what he proposes, individuals would be allocated an annual carbon allowance, which they could then decide how they used. Activities that resulted in higher carbon emissions - for example eating foods transported by air across the world - would consume more of an individual's yearly allocation.

“Individuals' electricity, gas and transport decision make up 44% of total emissions,” said Miliband. “Our decisions - the home we buy; what we eat and drink; how we travel and where we holiday - can have a major impact.”

In an indication of the threat these proposals pose to more environmentally damaging goods, he added: “Regulating products out of existence also has a role in driving the market.”

Dr Mayer Hillman, senior fellow emeritus at the Policy Studies Institute and an early proponent of carbon rationing, warmly welcomed the news. He hoped the UK would take the lead by seeking international agreement on so-called “contraction and convergence” for controlling the greenhouse gas emissions that are causing climate change.

“The ramifications [of carbon rationing] for the food and drink supply chain are considerable,” said Hillman. “We will need to be more self-sufficient in food production … people need to be obliged to save the planet.”

Hillman accepted that one of the biggest obstacles to the introduction of carbon rationing was likely to be the resistance of the electorate. He said government action was necessary to impose a brake on action by people who caused environmental damage.

The Food and Drink Federation said it was too early to say what impact the adoption of carbon rationing would have on the food supply chain. “At this stage, it's not clear how it will affect the industry,” said a spokeswoman.

A joint study involving several government departments will evaluate the feasibility of new policy options, including tradeable personal carbon allowances. If it takes off, it could extend the carbon trading scheme, which is already used by energy intensive industries in the EU and which Miliband would like extended to cover aviation.

Miliband further reinforced his intention to curb the impact of 'food miles' on the environment by calling in the bosses of Britain's leading supermarkets last week to demand more action; including greater encouragement for shoppers to buy locally and seasonally produced foods. “Government, food producers and retailers must rise to these challenges and drive through positive change,” said Miliband.

The Department for Environment, Food and Rural Affairs (DEFRA) has just released new figures showing an increase in carbon dioxide emissions caused by food transport. Food miles generated 18Mt of carbon dioxide in 2004, an increase of 4% on 2002. Air freighting of food - mainly fresh fruit and vegetables - although accounting for just 0.1% of food miles is said to contribute 13% of carbon dioxide emissions produced by all forms of food transport.

  • In the latest figures released by DEFRA, the food, beverages and tobacco products sector proved to be one of the largest in terms of its expenditure on environmental protection.

Companies in the sector spent about £580M in 2004 on environmental protection measures - 16.5% of the total spend for the year. Operating expenditure accounted for nearly 90% of the total. Water protection measures accounted for nearly £300M, while over £150M was spent on dealing with solid waste in 2003.