UK's turning point

Acting on climate change is the new economic engine

Taking action will add £160 billion to the UK economy in 2070.

There is evidence that the countries that take early and rapid action to establish green and low-emission production capabilities will be rewarded with more sophisticated and competitive economies in a low-emission world.

Inaction will see £220 billion lost from the UK economy and £110 trillion in global economic losses.

In a climate-damaged future, there could also be 5 million fewer jobs available in the UK economy over the next 50 years. This could be 90,000 jobs every year, equivalent to the population of the towns like Hartlepool or Grimsby.

We have a narrow window of time to change the future. Now is the time to accelerate transformations across the world, to combat the worst impact and accelerate economic growth.

_{Source: Deloitte Economics Institute.}

The UK economy has much to gain from action

With the right transition framework, the UK can move away from mounting climate damage towards new growth in a low-emissions economy. By getting started now, it can set the right direction, rate, and quality of growth to achieve an industrial revolution in the next 30 years. Not only can upfront coordination speed the path to net zero, but it could ensure a supportive transition that eases the cost burden —and shares the benefits—of change with all economies.

European economies must accelerate progress

In 2019 the UK was the first major economy to pass a net zero emissions law. However, if it does not accelerate its efforts to curtail carbon emissions, there will be a significant cost not only to the UK economy but to economies across Europe and the rest of the world. The cost of transitioning—which some have argued would be too high—is actually less than 0.1% of GDP each year to 2043. This is a small cost and one worth paying.

Yet even if the UK takes bold and collective action, it needs to be responsive to what’s going on in other parts of the world. That’s because the built-in assumptions about the outcomes of the UK’s decarbonisation depend on the efforts of all the regions of the world.

_{Source: Deloitte Economics Institute.}

1. Bold Climate Plays – 2021 – 2025: Decisions begin to accelerate decarbonisation at scale 
2. Accelerate to Zero – 2025 – 2035: Big economic shifts occur in policy, energy systems and consumer behaviour 
3. The turning point – 2035-2050: Decarbonisation of high-emission industries almost complete. Costs of sustainable technologies start decreasing and wider net economic gains 
4. Low-emission future – 2050 onwards: Radical transformation of economic structure. Global economies near net zero emissions and keep global warming to close to 1.5°C.