Source · Select Committees · Treasury Committee
Recommendation 5
5
Not Addressed
Paragraph: 47
There are a number of different estimates of the cost of achieving net zero by...
Recommendation
There are a number of different estimates of the cost of achieving net zero by 2050. However, the Government has not yet committed to its own cost estimates and should set these out as soon as possible. The Government should include in the Net Zero Review final report its own methodology on costs; and it should set out clearly where the uncertainties lie. The Treasury should also include a range of scenarios on how net zero might be achieved, and the associated cost for each scenario.
Government response summary AI-generated
The government deflects the request for its own net zero cost estimates, methodologies, uncertainties, and scenarios in the Net Zero Review, stating instead that lead delivery departments produce sectoral strategies.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
47
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
The Net Zero Review interim report highlighted the challenges in producing cost estimates and where the uncertainties lie. BEIS is the lead department responsible for net zero and the Government’s latest cost estimates are set out in BEIS’ Carbon Budget 6 impact assessment. The core scenario estimated a cost equivalent to 1-2% of GDP (1.6% in 2035 and 1.8% in 2050). The Net Zero Review final report will highlight factors that could contribute to an efficient transition, as well as factors to be considered in designing policy that will allocate costs through to 2050. It will be an analytical report that uses existing data to explore the key issues and trade-offs as the UK decarbonises. Against a backdrop of significant uncertainty on technology and costs, as well as changes to the economy over the next 30 years, it focuses on the potential exposure of households and sectors to the transition, and highlights factors to be taken into account in designing policy that will allocate costs over this time horizon.
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