Recent analysis by Energy UK, based on data from Oxford Economics, reveals that a swift transition to net zero could provide a significant boost to the UK economy. The report estimates this boost at £240 billion by 2050, an amount equivalent to the total value of the UK’s manufacturing sector. This finding underscores Energy UK’s call for political parties to emphasise the economic benefits of achieving net zero in their election manifestos.
The analysis suggests that private investment in the UK could rise by £165 billion under an accelerated transition scenario. This increase in private investment could free up public funds for other crucial spending priorities. Even regions currently reliant on fossil fuel industries, such as Scotland and the North-East, stand to benefit. These areas could see GDP growth exceeding 5% under the most ambitious transition pathway.
Despite the potential benefits, the report also cautions against slowing progress towards net zero. Past setbacks in green policies have already aggravated energy crises and added £9.8 billion to energy bills in 2022/23. Continued dependence on gas is projected to leave the UK vulnerable to price spikes in the coming decades, potentially increasing national debt by 13%.
Emma Pinchbeck, Chief Executive Officer of Energy UK, emphasises the economic imperative of achieving net zero. She states, “Failure to meet net zero will impose greater costs on UK taxpayers than the investments required to do so. This is the economic opportunity of a generation, and the UK has the chance to lead the world in technologies like hydrogen, CCUS, and floating offshore wind.”
Pinchbeck further highlights the urgency needed to capitalise on this opportunity amid growing global competition. She adds, “A fair transition will improve lives and livelihoods; warmer schools and hospitals can enhance experiences and save money by conserving energy, and cleaner transport will reduce pollution-related costs to the NHS.”
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