To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of applying a net-zero test to proposed (a) spending and (b) taxation in support of the Government’s commitment to reduce greenhouse gas emissions to net zero by 2050.
The Government continues to work towards achieving the long-term changes in our economy that are necessary to achieve net zero by 2050. The Treasury is conducting a review into how the transition over the next 30 years will be funded and where the costs will fall. This will include principles to guide decision-making. In parallel, we are committed to applying an ambitious carbon price from 1 January 2021 and are legislating to establish a UK Emissions Trading System as well as a Carbon Emissions Tax. HM Treasury’s world-leading Green Book guidance on appraisal and evaluation provides detailed advice for valuing the costs and benefits of interventions, including climate change mitigation and other environmental impacts.