Treasury has reportedly warned over diminishing returns that green investment could have.
The Observer reported that a leaked document that accompanied a presentation to key groups outside the government stated the spending needed to help the UK reach its net zero target is ‘uncertain’ and the benefits of ‘ever more investment’ are likely to reduce.
The Prime Minister’s Net Zero Review is expected this week.
In December 2020, the government published its interim Net Zero Review.
That mentioned clearly that while in the transition to net zero some sectors will enjoy new export opportunities, others could become less competitive if other countries follow different decarbonisation paths.
While it set out that there are both positive impacts and downsides that will need to be managed in the net zero transition, it made clear that climate change is an “existential threat to humanity”.
A Treasury spokesperson told ELN: “The government is committed to tackling climate change and the Prime Minister has set out an ambitious Ten Point Plan to help us achieve that.
“The Treasury is playing a crucial role in this effort, by allocating £12 billion to fund the Ten Point Plan, setting up the UK Infrastructure Bank to invest in net zero and committing to raise £15 billion through our Green Gilt for projects like zero-emissions buses, offshore wind and schemes to decarbonise homes.”