An accelerated transition to net zero could significantly benefit the UK economy.
That’s according to analysis conducted by Energy UK – the report, based on data from Oxford Economics, indicates that such a transition could potentially boost the UK’s economy by £240 billion by the year 2050, a figure equivalent to the entirety of the UK’s manufacturing sector.
This revelation comes as Energy UK urges political parties to prioritise the economic advantages of transitioning to net zero in their manifestos.
According to the analysis, private investment in the UK could see a substantial increase of £165 billion under an accelerated transition scenario, thereby releasing public funds for other essential spending priorities.
Furthermore, the report indicates that even regions facing significant challenges in transitioning from fossil fuel industries, such as Scotland and the North-East, could experience GDP growth of over 5% under the most ambitious pathway.
However, the report also highlights the potential risks of slowing progress towards net zero.
Previous instances of backtracking on green policies exacerbated energy crises and added £9.8 billion to energy bills in 2022/23, according to the report.
Moreover, continued reliance on gas could leave the UK significantly exposed to price spikes in the late 2020s, 2030s and 2040s, potentially increasing UK debt by 13%.
Emma Pinchbeck, Chief Executive Officer of Energy UK, said: “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.
“But global competition is increasing and urgency is needed to reap the rewards of a globally leading energy sector.
“And above all, a fair transition will improve lives and livelihoods; warmer schools and hospitals can improve experiences and save money by saving energy, cleaner transport reduces the associated pollution costs to the NHS.”
