Reducing the UK’s carbon emissions in line with these budgets and the requirements of the Climate Change Act would, by 2030, increase UK GDP by 1.1% in net terms, result in at least 190,000 additional jobs being created across the UK economy. Average households would also be financially better off compared to a scenario where little is done to reduce emissions.
The report, commissioned by
WWF-UKand based on Cambridge Econometrics’ rigorous modelling of the UK economy, compares a scenario where the UK meets the first four carbon budgets recommended by the CCC (which requires a cut in emissions of around 60% by 2030 compared to 1990 levels) with a scenario where we do little to reduce our emissions.
The important upfront costs required to fund low-carbon infrastructure should be seen as an investment that will result in the following benefits:
• Higher income: Households are expected to be on average £565 better off/year by 2030, with household spending being £474 higher; mainly from increased energy efficiency in households, lower running costs for EVs and net increase in wages and job creation.
• Higher GDP: There will be positive impacts on British businesses with UK GDP expected to be 1.1% higher in 2030 from increased household income and low-carbon infrastructure investment.
• More jobs: There will be 190,000 more net jobs in the UK and this is likely to be an underestimate as the report does not assume any export of low-carbon goods or services out of the UK;
• Better energy security: UK energy security is likely to be much improved and energy bills more stable as meeting the first four carbon budgets would result in a 30% reduction in the consumption of primary oils and petroleum products, and a 55% reduction in the consumption of gas by 2030, both of which will reduce imports of oil and gas into the UK by a value of around £8.5bn by 2030;
• Higher Government revenues: Annual Government revenues are expected to increase by £5.7bn by 2030 because of the stronger economy, with revenues from the carbon price offsetting about 75% of the decline in revenues from taxes on petrol and diesel sales;
• Reduced healthcare costs: Reducing fossil fuel use will also result in less air pollution, which is likely to improve people’s health in the UK as well as reduce healthcare expenditure by some £96m to £288m annually.
For more information or a copy of the Report please check out our website:
www.wwf.org.uk/climateeconomics
For more details about our launch event tonight with Energy & Climate Change Secretary Ed Davey MP please
see here
.
Related blogs and comments:
Trevor Maynard - Head of Exposure Management & Reinsurance Team, Lloyds of London
http://www.lloyds.com/news-and-insight/lloyds-blog/our-experts/trevor-maynard/2014/will-uk-climate-change-policies-make-us-better-or-worse-off
Steven Heath - Director, Knauf Insulation
https://builtonperformance.wordpress.com/2014/09/10/action-that-doesnt-cost-the-earth/
Joanne Wade - Executive Director, Association of Conservation of Energy (ACE)
http://www.ukace.org/2014/09/energy-efficiency-investment-will-strengthen-the-uk-economy/
Professor Jim Watson -
UK Energy Research Centre(
UKERC)
https://ukerc.wordpress.com/2014/09/10/the-economics-of-climate-change-policy-in-the-uk-by-prof-jim-watson-ukerc/
Tom Burke - Director, E3G
http://www.e3g.org/library/its-the-economy-stupid
Nick Molho - Head of Climate and Energy Policy, WWF-UK
http://www.businessgreen.com/bg/opinion/2364209/our-climate-goals-are-an-economic-opportunity-for-the-uk
Matthew Knight - Director, Siemens Energy
http://www.siemens.co.uk/en/news_press/index/news_archive/2014/report-shows-uk-benefits-from-action-to-meet-co2-targets.htm
Juliet Davenport - Founder and CEO, Good Energy
http://www.goodenergy.co.uk/blog/a-greener-cleaner-world-won-t-cost-the-earth?utm_content=bufferaf98f&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer