UK fiscal watchdog puts cost of reaching net zero at £1.4 trillion 

Posted: July 7, 2021 by oldbrew in climate, Emissions, government, ideology, net zero
Tags: , ,

heatpump

Domestic Air Source Heat Pump [image credit: UK Alternative Energy]

Upending both the national economy and personal finances for no noticeable climate benefit is an ‘investment’ in alarmist-speak. How much longer will voters turn a blind eye to these reckless policies?
– – –
The cost of the UK reaching net zero by 2050 could be as high as £1.4 trillion, according to figures released today by Britain’s fiscal watchdog, says CityAM.

The UK economy will require over £1 trillion in investment over the next three decades to hit the government’s target of making Britain carbon neutral, estimates included in the Office for Budget Responsibility’s latest Fiscal Risks report revealed.

The fiscal impact of achieving net zero in an early action scenario would add 21 per cent of GDP to public sector net debt by 2050-51, over £450bn in today’s terms.

But, this is smaller than the amount of additional net debt the government took on in response to the pandemic.

The OBR said the forecasts are based on the assumption the government bears a quarter of the cost of the transition.

Staggeringly, the report said that if the UK took no action to curb emissions, the debt to GDP ratio could sky rocket to a record high of 289 per cent.

The projections were included alongside the fiscal watchdog’s dossier on the biggest threats it thinks the UK’s public finances are likely to face in the coming year.

The report warned that Britain is a facing a “catastrophic” triple threat of the “coronavirus pandemic, climate change, and the cost of government debt.”

The OBR warned that “the arrival of two major economic shocks in quick succession need not constitute a trend, but there are reasons to believe that advanced economies may be increasingly exposed to large, and potentially catastrophic, risks.”

“As countries’ exposure to large, and potentially catastrophic, risks increases, so do the associated risks to their public finances” it added.

Continued here.

Comments
  1. oldbrew says:

    Staggeringly, the report said that if the UK took no action to curb emissions, the debt to GDP ratio could sky rocket to a record high of 289 per cent.

    Fantasy logic, fantasy numbers.
    – – –
    “It used to be the case that governments could inflate their debt away. It is less and less the case as we go into the future”

    https://www.reuters.com/world/uk/uk-inflation-jump-seen-temporary-risks-debt-are-growing-obr-2021-07-06/

  2. Gamecock says:

    ‘UK fiscal watchdog puts cost of reaching net zero at £1.4 trillion’

    No. It will cost everything. There will be no UK.

  3. Steve Richards says:

    And they will be wrong as well ! It’s disaster to be imposed on us by the biggest group of halfwits in the history of the mother of all parliaments.

    Johnson the buffoon will destroy the UK to please Princess

  4. Steve Richards says:

    I guess in the end the government will change the definition of ” zero “

  5. stpaulchuck says:

    I think he read the wrong line. That would be the down payment.

  6. ivan says:

    Since we all know it is shear stupidity we need to look at it from the point of view of Princess Nut Nut and its element of virtue signalling at the coming climate-fest in Scotland.

  7. Peter Norman says:

    £1.4 zillion won’t affect the pound in your pocket – Harold Wilson.

  8. Coeur de Lion says:

    And it can’t be done anyway.

  9. oldbrew says:

    Wind is erratic and sunlight is limited. Plan fails.

  10. Graeme No.3 says:

    “The OBR said the forecasts are based on the assumption the government bears a quarter of the cost of the transition.”

    When has the government, or any government, born any of the cost? Are they advocating a massive reduction in the number of bureaucrats? I doubt it.

    As for the £1.4 trillion sum, I did a brief calculation on the cost of adequate cover of Australia’s electricity (at 100% renewables) with batteries and came up with a figure of £1.7 trillion (to be repeated every 10 years). Mind you, Australia could have a poorer climate than the UK even if our on-shore wind turbines are more ‘effective’ than your lot (30% C.F. vs 27% max.) and our solar PV works even in winter (not as well esp. in current gloomy winter). We don’t have off-shore wind turbines because of 2 factors; lack of crazy subsidies and any installation upsets the owners of expensive real estate which by an odd coincidence is nearby.

  11. Chaswarnertoo says:

    The insanity of Mr Nut Nut PM.

  12. tom0mason says:

    According to https://www.nationaldebtclock.co.uk/ the national debt is over £2.5 trillion and The UK national debt grows at a rate of £5,170 per second!

    So using the fake financing economic methods (debt makes cash) the UK has more than enough cash for this stupid ‘net zero’ project.

  13. RexAlan says:

    “UK fiscal watchdog puts cost of reaching net zero at £1.4 trillion”

    Throughout my life I’ve noticed that this simple rule applies both for the cost and time to complete any project, double it and add some.

    But as this is the government spending other peoples money that rule probably doesn’t apply, in this case it should probably read, triple it and add some, and I’m being generous.

  14. oldbrew says:

    THE SUN SAYS How will Sun readers ever afford £50,000 per household for Net Zero by 2050?
    7 Jul 2021

    NO wonder the Government kept quiet. The bill for Boris Johnson’s “Net Zero by 2050” pledge will be £1.4 trillion.

    That’s equivalent to £50,000 per household.
    . . .
    The Government must be upfront. Our Covid debt is vast. Now we face higher taxes and massive Net Zero bills.

    How will Sun readers ever afford it?

    https://www.thesun.co.uk/news/15514376/sun-readers-afford-50000-per-household/

  15. MrGrimNasty says:

    More like £3-5Trillion, but…………..

    Ask yourself how the aims here could best be achieved?

    https://www.weforum.org/agenda/2020/08/building-blocks-of-the-great-reset/

    Destroying the economy/value of money would be very helpful!

  16. Gamecock says:

    “More like £3-5Trillion”

    Doesn’t matter what the number is. You won’t have it. A ‘Net Zero’ economy will have NO MONEY.

    You can envision having £3-5Trillion, because your view is today’s fossil fueled economy. A ‘Net Zero’ economy will be neolithic. Not to worry, a ‘Net Zero’ economy can’t support a military, so the Norwegians or Danes or Germans or French will takeover before you get too deep in the doo-doo.

    Your grandchildren will survive. They won’t be speaking English. 10 Downing decadence thinks the world is just going to watch benevolently UK’s suicide. They will be plotting.

  17. oldbrew says:

    OBR turns a blind eye to Net Zero policy risks
    Date: 09/07/21 Global Warming Policy Forum

    The Office for Budget Responsibility (OBR) has failed to assess the true risks of the government’s Net Zero policy and is not a reliable guide to the long-term sustainability of Britain’s public finances.
    . . .
    It is no exaggeration to say that everything in both the CCC’s and the OBR’s cost assessment depends on their optimistic assumption that the cost of renewable electricity will drop significantly.

    https://www.thegwpf.com/obr-turns-a-blind-eye-to-net-zero-policy-risks/
    – – –
    ‘…cost of renewable electricity will drop significantly’
    That’ll be the day.

    The GWPF concludes:
    Britain is beginning to look like a text-book example of a failing planned economy.

  18. Douglas Dragonfly says:

    Plus large figures being reported today for the cost of Britain leaving the EU.
    Wonder where cut backs will be made ?

    [reply] far cheaper than staying in it

  19. Gamecock says:

    You won’t know what a trillion is in 2050.

  20. oldbrew says:

    Ten million jobs at risk due to Boris Johnson’s Net Zero pledge
    Date: 05/01/21 The Sun

    Two in five workers in the UK’s poorest regions are reliant on high-emitting industries for jobs.

    https://www.thegwpf.com/ten-million-jobs-at-in-red-wall-seats-at-risk-due-to-governments-net-zero-pledge/
    – – –
    Those workers have votes. Being unemployed to supposedly save the climate has no appeal.

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