Climate change policies not harming UK’s competitiveness

A new report by Grantham Research Institute on Climate Change and the Environment and the ESRC Centre for Climate Change Economics and Policy at London School of Economic and Policy at London School of Economics and Political Science has been published.

The report advises that the proposed Fifth Carbon Budget which will set a greenhouse gas emissions target for 2030, would not harm the UK’s competitiveness. Furthermore it could promote economic growth. The UK’s national greenhouse gas emissions would be 57% lower under the target between 2028 and 2032 in comparison to 1990 levels.

The report states: “Climate change policies can increase the competitiveness of the UK in the long term by encouraging greater innovation and efficiency. Well-designed climate change policies could offer business opportunities in fast-growing global markets.” “The UK is well-positioned to benefit from a global transition to a more resource-efficient and renewable economy, provided flexible structural policies allow it to utilise its comparative advantages”.

“The UK is an international leader in cutting greenhouse gas emissions, but is not acting alone. The UK is part of a leading group of nations that is taking policy action on climate change. Also in this group are many of the UK’s major international partners, including France, Germany, Norway, South Korea, Mexico, and China.” There are only thought to be a few sectors, totalling 4% of the GDP which are at risk of negative impacts from the higher demands of the climate change policies needed for the Fifth Carbon Budget.

The report continues:

“Policies to support vulnerable sectors are already in place in the UK, in the form of free emissions trading permits and sector discounts or exemptions from national policies. However, there is evidence to suggest that current measures are often too generous and target too many sectors.” “The UK is well-positioned to benefit from a global transition to a more resource-efficient and renewable economy, provided flexible structural policies allow it to utilise its comparative advantages.”