Climate Change: Economic Situation
The question
To ask the Chancellor of the Exchequer, what estimate her Department has made of the potential economic impact of (a) extreme weather events, (b) food inflation, (c) flood recovery and (d) other climate-related impacts on (i) public services and (ii) households.
Answered by Darren Jones
The Government recognises that preparing for the future means adapting to the effects of climate change. Without action, flooding, coastal erosion and other climate hazards will pose greater risks to lives, livelihoods and people’s wellbeing
The Office for Budget Responsibility’s latest Fiscal Risks and Sustainability report estimates the potential fiscal costs to the UK from climate damage across a range of warming scenarios. Their analysis includes both direct costs in response to physical damages and indirect costs arising from additional demands on public services. The UK’s Third Climate Change Risk Assessment also provides an evaluation of the climate risks facing the UK, with impacts across infrastructure, health and the economy.
As set out at the Autumn Budget, the Government is investing in climate adaptation to protect the economy from climate change, confirming investment of £2.4 billion over two years to support flood resilience and over £400 million for tree planting and peatland restoration, which will further support resilience.
The development of the Fourth Climate Change Risk Assessment will also support the Government in continuing to improve its assessment of the risks and opportunities from climate change.
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