Commons Sense

House of Commons · Ministers' Questions

Climate Change: Economic Impact

Tuesday 5 September 2023 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • The Treasury's 2021 net zero review noted that unmitigated climate change could cost between 5% and 20% of global GDP annually.
  • We are decarbonising faster than any other G7 country, with carbon emissions reduced by 48% since 1990 while the economy grew by 65%.
  • Pension funds have a fiduciary responsibility to deliver financial returns and consider their pensioners' values, and they will continue to invest in line with climate risks.

Topics (select to filter)

Questions & Answers

Q1 Wera Hobhouse Lib Dem Bath
Economy Climate
Context

A recent Treasury report noted potential costs of unmitigated climate change.

Question

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. What assessment have you made of the potential impact of climate change on the economy?

Answer from 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.

Partly answered

Not addressed: Did not provide an assessment specific to the UK economy.

How: Discussed Global Figures Instead

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Q2 Nadia Whittome Lab Nottingham East
Economy Climate
Context

A report found a disconnect between climate change expectations and financial system preparedness.

Question

The recent Carbon Tracker report has highlighted significant risks in economic modelling for pension funds. Energy UK warns of lagging green energy investments. Does the Minister agree that rapidly phasing out fossil fuels and investing in a green new deal is necessary?

Answer from Gareth Davies

We are decarbonising faster than any other G7 country. Since 1990, we have reduced carbon emissions by 48% while growing the economy by 65%. This will take a balanced approach involving public and private investment.

Partly answered

Not addressed: Did not commit to rapidly phasing out fossil fuels or investing in a green new deal.

How: Highlighted Past Achievements

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Q3 Wera Hobhouse Lib Dem Bath
Climate
Context

The question references outdated literature for policy decisions.

Question

The Carbon Tracker report found that policies are based on 1990s literature. Will the Chancellor review the data and thinking to ensure alignment with modern climate science?

Answer from Gareth Davies

Last year, 40% of our electricity was generated from renewables. We are decarbonising our economy and have great plans for the future.

Not addressed: Did not commit to reviewing data and thinking on climate change.

How: Shifted Focus To Current Achievements

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Q4 Steve Tuckwell
Transport Environment
Context

The question addresses constituents' concerns about the impact of Mayor Khan's policy.

Question

Does my hon. Friend agree that Mayor Khan's ultra-low emission zone expansion impacts families and businesses negatively without significant environmental benefit?

Answer from Gareth Davies

Let me welcome my hon. Friend to his place. He has wasted no time in advocating for his constituents against a Labour tax hitting households and businesses in the south-east. This is simply not right, and we urge the Leader of the Opposition to tell his Mayor of London to stop it.

Not addressed: Did not address the question about environmental benefits or economic impact.

How: Criticised Labour

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Q5 Richard Fuller Con North Bedfordshire
Climate Benefits & Welfare
Context

Concerns about mandating pension funds to invest in specific green schemes.

Question

The shadow Chancellor might mandate the use of pension fund money for pet schemes, risking pensioners' savings. What does my hon. Friend think this will do to the British economy?

Answer from Gareth Davies

Pension funds have a fiduciary responsibility to deliver financial returns and consider their pensioners' values. I am confident that they will continue to invest in line with the risks presented by climate change.

Partly answered

Not addressed: Did not address economic impact of mandated investments.

How: Stated Confidence Without Specifics

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Q6 Abena Oppong-Asare Lab Erith and Thamesmead
Climate Energy
Context

Government's ban on new onshore wind projects.

Question

This Government effectively banned new onshore wind, crucial for net zero, energy security, and reducing bills. With Tory rebels clashing, can we get a clear answer: delay or lead with Labour on onshore wind?

Answer from Gareth Davies

Onshore wind plays an important role and we are deploying 14 GW of energy from it. It is one of our cheapest sources, but the hon. Lady does not have long to wait for answers in the Energy Bill being considered later.

Partly answered

Not addressed: Did not provide a clear commitment on future actions regarding new projects.

How: Referred To Upcoming Bill Without Commitment

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