Is reaching net zero a growth and prosperity plan? Economics, tools and actions for a rapidly changing world
24 October 2024 – A policy briefing by the University of Cambridge Zero Policy Forum and London School of Economics (LSE), with contributions from Cambridge Institute for Sustainability Leadership, argues the UK government should invest in green infrastructure now or watch productivity lag behind China, the United States and other countries already running away with the benefits.
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About
Partnering with Cambridge Zero Policy Forum and London School of Economics, CISL is pleased to have contributed to a new report: Is reaching net zero a growth and prosperity plan? Economics, tools and actions for a rapidly changing world. With a focus on the fundamental importance of policy in activating the green transition, the report explores how the UK’s current models for economic growth and development can, and must, be transformed to ensure the delivery of a competitive and coordinated green investment strategy.
Report Highlights
As evidence of climate change risks continues to become more frequent and severe, the case for urgency in reducing emissions has never been stronger. This report aims to provide a comprehensive understanding of the nature of the decarbonisation challenge, and a set of conceptual frameworks and fit-for-purpose analytical tools to help guide policymaking.
Conventional economic frameworks such as cost-benefit analysis (CBA), which represent static approaches to understanding risks, are ill-suited to the contexts of dynamic structural change and uncertainty that the climate crisis brings. Assessing the path to net zero requires a more diverse set of approaches, which this report broadly encompasses under risk-opportunity analysis (ROA).
Meeting the Government’s various climate ambitions requires anticipating, managing, and shaping the rapidly evolving landscape of climate risk and opportunity. This report aims to work with HM Treasury to address macroeconomic debates such as “growth versus environment,” questions of early versus late action, and outdated focus on “picking winners” in clean technology, paving the way for more impact-driven delivery of UK green innovation and competitiveness.
While green innovations are expensive, disruptive, and difficult to kickstart, they will ultimately bring about a win-win scenario, as transitioning towards clean energy, infrastructure, and technologies may result in lower energy system costs and productive green growth.
The full report is a joint effort by the Cambridge Zero Policy Forum and the LSE Grantham Research Institute on Climate Change and the Environment. The Cambridge Zero Policy Forum is a multidisciplinary community of senior academics contributing evidence and expertise to public policies for the transition to a sustainable, inclusive, and resilient net zero society.
Eliot Whittington, Chief Systems Change Officer, CISL, contributed to this report.
The Forum is co-chaired by Prof Emily Shuckburgh (Director, Cambridge Zero), Dr Rob Doubleday (Executive Director, CSaP), and Emily Farnworth (Director, Centre for Sustainable Leadership, Hughes Hall).
Citing this report
Zenghelis, D. , Costa-Allendes, A. , Stephenson, S., Nemo Ramirez, C., Wale, W., Hunnable, H. (2024). Is reaching net zero a growth and prosperity plan? Economics, tools and actions for a rapidly changing world by the Cambridge Zero Policy Forum. Cambridge Open Engage.