Delivering a net zero emissions economy by 2050 is “essential” for ensuring long term prosperity in the UK, as the transition will create new jobs and opportunities while helping stave off the “existential threat to humanity” posed by climate change. That is the view of the UK Treasury, as the department today published an interim update of its high profile Net Zero Review, providing an early indication that it regards clear, well-designed climate policy as central to the long term success of the UK economy. The interim report proceeds the hotly-anticipated final assessment of the costs of achieving net zero, which is due to be published in spring next year. When it emerges in 2021, HM Treasury’s final Net Zero Review is set to offer a first-of-its kind overview of the expected costs, investments, and benefits of driving down UK emissions to net zero by 2050, as well as where costs are most likely to fall, and who should pick up the bill. Today’s interim Net Zero Review report lays out some of the key challenges in providing an accurate picture of likely costs over the next three decades, warning the final cost of the UK’s net zero transition is “difficult to predict” because “many of the details of how the transition will evolve are unknown”. In particular, it cites business decisions, consumer choices, innovation trends, and government policies as major factors set to shape the decarbonisation pathway through to 2050.
Business Green 17th Dec 2020 read more »
Officials have been long concerned about the future loss of more than £30bn in revenue from drivers. In a new review the Treasury has acknowledged the problem in a way that will spark a debate about how driving should be taxed in the future. One idea would be to charge motorists for every mile they drive. But the AA says such road pricing will be tough to sell politically. Instead, the motoring organisation is proposing a system of “Road Miles” in which motorists are allowed to drive free of charge for 3,000 miles (4,000 in rural areas) before they start paying. The Treasury review offers another striking conclusion from a government department traditionally worried about harm to the economy from cleaning up the UK’s emissions. The latest message is the opposite – that tackling climate change might even benefit the economy by giving the UK a lead in clean technologies.
BBC 18th Dec 2020 read more »
The HM Treasury has published a final report in the build-up to a Net-Zero Spending Review, claiming that the transition to meeting the UK’s long-term climate goals could deliver “slightly positive or slightly negative” economic growth for the UK, depending on how decisive policy action is.
Edie 17th Dec 2020 read more »