UK: PM Boris Johnson, Chancellor Rishi Sunak at odds on converting to zero-carbon economy

With just weeks to go before the key Cop26 climate summit, confidential documents obtained by The Guardian indicate a void between Boris Johnson and his chancellor, Rishi Sunak over the probable economic repercussions of converting to a zero-carbon economy. The documents suggest that the Treasury warning of serious economic damage to the UK economy and future tax rises if the UK overspends on, or misdirects, green investment as Johnson prepares to position the UK at the forefront of global efforts to combat climate change and curb greenhouse gas emissions as host of the Glasgow Cop26 meeting.

The efforts to decarbonize the British economy were labelled as 'uncertain' in the documents, but they may help to improve the UK's low investment levels and raise productivity. It also cautioned that more green financial infusions will likely yield lower returns, reducing the positive impact of increased investment on GDP.

Treasury's net-zero analysis was "half-baked" and "one-sided"

According to the British news website, green specialists stated the Treasury's net-zero analysis was "half-baked" and "one-sided," focusing primarily on the costs of reducing emissions rather than the benefits, such as green jobs, lower energy bills and avoiding the terrible effects of global warming.

The report also suggested that while unabated climate change would be disastrous the net fiscal costs of getting to net zero emissions by 2050 could be very modest. The government's official adviser, the Committee on Climate Change, has frequently argued against the small and diminishing costs of action on a zero-carbon economy, which might amount to less than 1 per cent of GDP by 2050, according to Sputnik. Johnson's major address in mid-November 2020, extolling Britain's green industrial renaissance and announcing a programme to safeguard the environment, preceded the OBR report.

PM Boris Johnson laid out an ambitious plan

According to the Treasury, the prime minister has laid out an ambitious plan to assist them to achieve the goal of combating climate change. The Treasury is playing a key role in this endeavour, providing £12 billion to support the plan, establishing the UK infrastructure bank to invest in net-zero and pledging to raise £15 billion for projects such as zero-emission buses, offshore wind and residential decarbonization programmes, according to the British news website.

(Image: AP/@rishisunak/Facebook)