OBR forecast for cost of impact of climate change on GDP has increased: comment
OBR forecasts increased fiscal risk from impact of climate change
By Gareth Redmond-King
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Commenting on the report published today by the Office for Budget Responsibility (OBR) showing that the risks to the fiscal outlook from climate impacts are mounting [1], Gareth Redmond-King, Head of International Programme at the Energy and Climate Intelligence Unit (ECIU) said:
“Assessments of the economic costs of climate change have typically been underestimates. The Institute and Faculty of Actuaries suggests the world's GDP could be cut in half by later this century - that means the global economy being half the size it would otherwise be by the time a child born today is in their 40s.
"The UK is the sixth biggest economy on the planet and one of the biggest cumulative emitters historically; so we can hardly opt out of tackling climate change. Yet it is also in our economic interests. The government’s climate advisors have shown the cost of reaching net zero emissions - the only way to stop climate change - falling [2]. And net zero industries add £83 billion in value to the UK economy [3], employing nearly a million people."
Notes to editors:
1. https://obr.uk/hero/uk-public-finances-in-relatively-vulnerable-position-and-facing-mounting-risks/
2. https://www.theccc.org.uk/publication/progress-in-reducing-emissions-2025-report-to-parliament/
3. https://eciu.net/media/press-releases/2025/uk-net-zero-economy-grows-10-in-a-year-finds-new-report
For more information or for interview requests:
Gareth Redmond-King, Head of International Programme, ECIU, Tel: +44 (0)7971 009 558, email: gareth.redmond-king@eciu.net