Net-zero carbon impact on UK debt could be less than pandemic hit

cde.news desk 6 July 2021, 16:00 · 1 min read

epa05555166 A file photograph showing wind turbines at the construction site of the highest wind park in Europe, are pictured at the Griessee, Nufenenpass, Valais, Switzerland, 18 August 2016. On 25 September 2016, the Swiss electorate will vote on the popular initiative: 'Green Economy'. Natural resources such as water, air, soil or raw materials are essential for our well-being. Nowadays people consume too many natural resources. As economies and populations grow, the pressure on the environment increases. If we are to continue to have economic prosperity while enjoying the same standard of living, we must use natural resources more efficiently. EPA/OLIVIER MAIRE

The impact on Britain’s public debt mountain caused by action to meet the country’s net carbon zero target by 2050 could be less severe than that of the coronavirus pandemic, as long as the government moves quickly, the country’s fiscal watchdog said.

The Office for Budget Responsibility said its early-action scenario added 21% of gross domestic product to public sector net debt in 2050-51, or 469 billion pounds ($650 billion) in today’s terms.

“That is somewhat smaller than the addition to net debt as a result of the pandemic,” the OBR said in a report on the risks facing Britain’s public finances.

In a delayed-action scenario, debt in 2050-51 would be 23% of GDP higher than in the early-action scenario, it said.

via Reuters

Filed under Environment UK

Topics Budget Debt

Net-zero carbon impact on UK debt could be less than pandemic hit

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