The Treasury has yet to match its promises to fight environmental damage with action, MPs have warned.

Ministers have failed to find a strategy to use taxes as an incentive to change behaviour on things like car use concluded the all-party environmental audit committee.

MPs on the committee warned government pledges to reduce greenhouse gases was "seriously off-course and current progress and future projections must be reviewed as a matter of urgency".

The committee's inquiry released on Tuesday into the Pre-Budget Report of 2002 said Treasury plans could play a key part in meeting targets to help the environment.

"Fiscal policies can play an important role in altering over time both values and behaviour," the MPs said.

"In our view, the Treasury have set an excellent objective, over time, to reform the tax system to increase incentives to reduce environmental damage but have yet to back this up with an adequate strategy."

The MPs questioned the commitment of the government specifically on the landfill tax and tax credits scheme, VAT in relation to development and energy saving products.

There was also tough questioning on why the Treasury has not given a higher priority to the issue of taxation on aviation fuel which has been heavily resisted by the airline industry.

The committee also expressed dismay over transport secretary's review of the UK' airport capacity, which had only partly taken environmental considerations on board.

Committee chairman John Horam gave a bleak overview: "The government's Pre-Budget Report introduced a number of useful environmental measures but these hardly constitute major initiatives.

"The Treasury's strategic objectives of shifting the burden of taxation from 'goods' to 'bads' is in danger of stalling."

Sue Doughty, Liberal Democrat member of the committee, claimed the government had completely failed to use environmental taxation positively.

"Until they do, the UK will fall a long way short of what is needed for the future," she said.

"The government appears keen to bring in environmental taxation, but seems to have no idea how it will work, or even if it will work.

"All that exists at the moment is a shambles."