Oral Answers to Questions

Wera Hobhouse Excerpts

Tuesday 5th September 2023 Commons Chamber

[Nadia Whittome (Nottingham East) (Lab)]

2. What assessment he has made with Cabinet colleagues of the potential impact of climate change on the economy.

[Wera Hobhouse (Bath) (LD)]

16. What assessment he has made of the potential impact of climate change on the economy.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

The Treasury’s 2021 net zero review noted that unmitigated climate change damage has been estimated to be the equivalent of losing between 5% and 20% of global GDP each year. The costs of global inaction significantly outweigh the costs of action, and McKinsey estimates that there is a global market opportunity for British businesses worth £1 trillion.

[Gareth Davies]

It is important to point out that we are the fastest decarbonising economy in the G7. Since 1990, we have decarbonised by 48% while growing our economy by 65%, but the hon. Lady is right: this will take a balanced approach involving both public spending and private investment, including pension fund investment. The recent pension fund reforms, for example, should unlock some new assets for green infrastructure.

[Wera Hobhouse]

I agree with the question about the Carbon Tracker report. It has found that policy decisions are being based on 1990s literature. That is 30 years old. Will the Chancellor review the data and the thinking that the Government are using to make sure that all strands are in line with the climate science of the 21st century?

[Gareth Davies]

The data that I look at shows that last year 40% of our electricity was generated from renewables. That is an amazing achievement, but we are alive and present when it comes to decarbonising our economy. We have great plans and we are building on our great track record. We will continue to do that.