Reaching net-zero will be much cheaper for the UK government than previously expected – and the economic damages of unmitigated climate change far more severe.
These are two key conclusions from the latest report on risks to the government finances from the independent Office for Budget Responsibility (OBR), which includes a chapter on climate change.
The new OBR report shows very clearly that the cost of cutting emissions to net-zero is significantly smaller than the economic damages of failing to act.
Here are four key charts from the OBR report.
Climate damages could reach 8% of GDP by 2070s
The UK could take an 8% hit to its economy by the early 2070s, if the world warms by 3C this century, according to the new OBR report.
(This aspect of the OBR report has been picked up in a Reuters headline: “Global 3C warming would hurt UK economy much more than previously predicted, OBR says.”)
Its latest estimate (blue line) of the impact of “climate-related damages” by the 2070s is three percentage points (60%) higher than thought just last year (yellow), as shown in the figure below.
The OBR says that the increase in its estimate of climate damages is due to using a “more comprehensive and up-to-date analysis”.
(The world is currently on track to warm by only slightly less than 3C this century.)
Unchecked damages could double hit to borrowing
The impact of climate damages on government borrowing would be nearly twice as high by the 2070s, if global warming goes unchecked and reaches 3C, according to the OBR report.
This is shown in the figure below, which compares additional government borrowing each year, as a share of GDP, if warming is limited to less than 2C this century (left) or if it climbs to 3C (right).
The OBR explains that the largest impact of climate damages on government borrowing is “lower productivity and employment and, therefore, lower tax receipts”.
Cost of net-zero halved
When it comes to cutting UK emissions, the OBR says the government will only need to invest just over half as much on reaching net-zero, compared with what it expected four years earlier.
This is shown in the figure below, with the latest 2025 estimate (right) showing a cumulative government investment of 6% of GDP across the 25 years to 2050, down from 11% (left).
(Note that the large majority of “lost government receipts”, shown in yellow in the figure below, are due to fuel duty evaporating as drivers shift to electric vehicles. As the OBR notes, the government could choose to recoup these losses via other types of motoring taxes.)
The OBR takes its estimates of the costs and benefits of cutting emissions to net-zero from the government’s Climate Change Committee (CCC). The CCC recently issued significantly lower estimates for net-zero investment costs, due to more rapidly falling clean-technology costs.
Acknowledging this shift, the OBR says the latest CCC estimates on the cost of reaching net-zero are “significantly lower” than earlier figures.
It notes that the net cost to the economy of reaching net-zero emissions by 2050 is now put at £116bn over 25 years, some £204bn lower than previously expected.
In very rough terms, this figure – which excludes health co-benefits due to cutting emissions and avoided climate damages – is equivalent to less than £70 per person per year.
Cost of action far lower than cost of inaction
Taken together, the OBR findings show more clearly than ever before that the cost of taking action to tackle climate change would be far lower than the cost of unchecked warming.
For the first time, its latest report combines the estimated cost of cutting emissions with the expected damages due to rising temperatures in a single figure, shown below.
The comparison illustrates that climate damages (blue bars in the chart) are set to impose severe costs on the UK public finances, even if warming is limited to less than 2C this century (left).
The OBR also shows how the cost of government investment in cutting emissions (yellow) is both temporary and relatively small in comparison to climate damages.
Moreover, it highlights how unchecked warming of 3C this century (right) would impose far higher climate damages on the UK government’s finances than if global temperatures are kept in check.
Specifically, global action to limit warming to 2C instead of 3C could prevent more than 1 percentage point of climate damages being added to annual government borrowing by the 2070s.
In contrast, the combined estimated cost to government of action to cut emissions never exceeds 0.6 percentage points – even if lost receipts due to fuel duty are not replaced (green).
Beyond these new numbers, the OBR acknowledges that it still does not include the cost of adapting to climate change, or the impact this could have on reducing damages.
Nor does it consider the potential for accelerated transitions towards clean energy, technological advances that make this shift cheaper or the risk of tipping points, which could cause “large and irreversible changes” to the global climate.
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OBR: Net-zero is much cheaper than thought for UK – and unchecked global warming far more costly
More than 92,000 people have registered to attend the COP31 climate summit in Antalya, Turkey, potentially making it the largest COP in history.
Carbon Brief analysis of the provisional lists of delegates, published by the United Nations Framework Convention on Climate Change (UNFCCC), reveals that more than 14,000 delegates have been registered as “host country guests”.
For comparison, the provisional list for COP30 in Belém, Brazil, last year included only around 1,000 delegates in this category.
As with COP30, Donald Trump’s US government has not sent a delegation. Other no-shows include Israel and Myanmar.
It was reported ahead of the summit that Taliban officials from Afghanistan had been registered for the event as observers; however, there are no delegates from observer states in the provisional lists.
With more than 3,000 “virtual” delegates signed up to attend the summit online, the total number of people registered for the event surpasses 95,000.
Further analysis of the participant lists will be added to this article in due course.
Party delegates
With 92,934 participants registered, COP31 is provisionally the largest COP in history – topping COP28 in Dubai, which was attended by more than 80,000 people.
This total is based on the delegates that have registered to be at the summit in person. The UNFCCC releases the final figures – based on participants collecting a physical badge at the venue – after the summit has ended.
The chart below shows how the provisional figures for COP31 compare to the final totals in previous COPs – going back to COP1 in Berlin in 1995.
The participant lists provided by the UNFCCC are divided between the different types of groups and organisations attending the summit. The largest group at COP31 is for delegates representing parties. These are nation-states, plus the European Union, that have ratified the convention and play a full part in negotiations.
This group adds up to 18,812 delegates – the second largest after COP28.
Membership
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(In keeping with recent COPs, the UNFCCC has published spreadsheets that name every single person that has registered for the summit – excluding support staff. Previously, COPs have typically included thousands of “overflow” participants in which countries and UN agencies could nominate delegates without their names appearing on their official lists.)
For consistency with Carbon Brief’s analysis of previous COPs, the above chart includes overflow delegates as a single group. However, the participant lists do divide the overflow delegates between parties and observer groups. Including the overflow numbers takes the total for party representatives to more than 34,000.
Nations
The map and table below present the delegation size – split between party and overflow badges – for all the countries registered for COP31. The darker the shading, the more delegates that country has signed up. Use the search box to find the data for a specific party.
Unsurprisingly, host nation Turkey has registered the largest delegation for COP31 – with 2,950 people.
Following behind are Brazil (1,994 people), Nigeria (1,506), China (1,021) and Indonesia (978).
The rest of the top 10 is made up of Australia (835), Uganda (627), Italy (607), Japan (588) and Kazakhstan (557).
The UK comes someway down the list with a delegation of 255.
The smallest delegation comes from North Korea (two), followed by Eritrea and Nicaragua (three) and San Marino and Trinidad and Tobago (four).
(It is worth noting that some countries – such as Brazil – allocate some of their party badges to NGOs, which can artificially inflate the size of their official delegation.)
