This report, complementing the Committee’s advice on the UK’s Seventh Carbon Budget, tests the Committee’s cost and energy security conclusions against different scenarios.
The report includes additional cost-benefit analysis of the CCC’s proposed Balanced Pathway to Net Zero, modelled for the Committee’s Seventh Carbon Budget advice. This analysis was carried out in line with the government’s Green Book guidance.
The report finds that in all scenarios achieving Net Zero is a more cost-effective path for the UK economy than continued reliance on fossil fuels, bringing a net benefit to society.
Key messages
- For every pound spent on Net Zero, the benefits outweigh this by 2.2 to 4.1 times.
- Avoiding climate damages is the most significant benefit of the transition. This saving is estimated between £40 billion and £130 billion in 2050.
- Energy losses are halved compared to today. Losses in a Net Zero system are valued at £30 billion per year, compared to £60 billion a year in today’s energy system.
- The transition is set to deliver far greater health and wellbeing co-benefits than costs. Cleaner air, warmer homes, more active travel and healthier diets strongly outweigh downsides like extra public transport time or potential congestion from increased EV use.
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