UK Net Zero Push Expected to Cost Taxpayers £800bn by 2050, OBR Warns

The Office for Budget Responsibility (OBR) estimates that Britain's push to achieve net zero emissions by 2050 will cost taxpayers over £800 billion, averaging £30 billion annually through mid-century. Two-thirds of these costs stem from lost tax revenues, particularly fuel duty, as petrol and diesel vehicle sales decline due to the rise of electric vehicles, while the remaining third involves public investment in green technologies such as decarbonising homes, transport, and clean energy infrastructure. Although the fiscal cost projection has been revised downward from earlier estimates of £1.1 trillion, largely due to higher electric vehicle uptake and fuel duty freezes, the financial burden remains substantial amid vulnerable UK public finances. The OBR warns that unchecked global warming, potentially reaching 3°C, could inflict economic damages equivalent to 8% of GDP by the 2070s, significantly increasing government debt and fiscal pressures. The report highlights that the costs of transitioning to net zero are considerably lower than the economic damages expected from failing to mitigate climate change, emphasizing the importance of sustained investment and policy. Political opposition to net zero policies persists, with some UK parties and international figures, including President Donald Trump, expressing skepticism or opposition to the commitment.