HM Treasury publishes Net Zero Review interim report to inform green transition

Just before Christmas HM Treasury published an interim report of the findings from its Net Zero Review, the transition towards net zero greenhouse gas emissions by 2050.

Key findings include that:

• The UK has made significant progress in decarbonising its economy but needs to go much further to achieve net zero by 2050. This will require substantial investment and significant changes to how people live their lives.
• The effect of UK and global climate action on UK economic growth is likely to be relatively small and the net zero transition will create opportunities for the UK economy as new industries and jobs emerge.
• Structural changes in the economy will affect fiscal policy with revenues from taxes on fossil fuel consumption and emissions-intensive industries declining during the transition. The government will need to consider how to offset these lost revenues either through adjustments to other taxes or reductions in government spending.

The final report will be published in spring 2021. The government will also publish a Net Zero Strategy and sectoral decarbonisation strategies for heat and buildings, transport and industrial decarbonisation in 2021. In the meantime, the interim report can be read here