A new analysis by the UK Office for Budget Responsibility (OBR) reveals that achieving net-zero emissions will be significantly cheaper than previously estimated, costing around 21% of national GDP, while failing to address climate change may sharply escalate fiscal risks. The report projects that without mitigation, unchecked global warming could cause economic losses equivalent to an 8% drop in GDP by the 2070s, alongside adding approximately 2% of GDP to government debt. In contrast, transitioning to net zero—though requiring upfront investment—is projected to reduce long-term damages, stabilize public finances, and offer economic benefits that outweigh its costs. This data reinforces the case that climate action is more economically prudent than inaction.

Source: Carbon Brief