Climate Change and Fossil Fuels: Economic Situation
The question
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of (a) climate change and (b) new oil and gas production on the economy.
Answered by James Murray
Illustrative analysis in the OBR's 2024 Fiscal Risks and Sustainability Report suggests that UK GDP could be around 3% lower by 2074 under a below 2°C warming scenario and around 5% lower under a below 3°C warming scenario.
For decades, the North Sea’s workers, businesses and communities have been at the heart of Britain’s energy future - something they will continue to do for decades to come. This Government will not revoke existing licences and will partner with businesses and workers to manage our existing fields for the entirety of their lifespans
This Government is engaging industry via the ‘Building the North Sea’s Energy Future’ consultation to develop and set out the next steps for the overarching objective for the North Sea. Scaling up industries that will shape the future of the North Sea (including offshore wind, carbon capture and storage, hydrogen, and decommissioning), will be vital for delivering the best outcomes for workers and communities, energy security, and sustainable economic growth.
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