Net Zero Transition to Cost UK Taxpayers £800 Billion Over Two Decades

The UK’s transition to a Net Zero economy will cost taxpayers more than £800 billion over the next two decades, according to the Office for Budget Responsibility (OBR). This includes £30 billion annually in spending on green technologies and lost tax revenues from declining fuel duties as electric vehicles gain prominence.
The OBR’s estimate, while significant, has been revised downward from £1.1 trillion since 2021, partly due to higher-than-expected adoption of electric vehicles and freezes on fuel duties. However, critics argue the projections rely on overly optimistic assumptions from the Climate Change Committee (CCC), including underestimated costs for renewable energy technologies like offshore wind and solar.
The CCC’s estimates for the cost of offshore wind in 2030 are less than half the value of contracts awarded in recent years, and it failed to account for the higher costs of floating offshore wind. Similarly, solar energy costs were underestimated, and onshore wind costs were not even assessed despite the need for significant capacity increases.
Critics warn that the lack of proper cost assessments by successive governments leaves taxpayers at risk ofShouldering an even greater financial burden. The Renewable Energy Foundation (REF) estimates that "Net-Zero" levies have already added £25.8 billion annually to energy bills for households and industries.
The financial implications of the Net Zero agenda remain a contentious issue, with concerns growing over the long-term affordability and feasibility of the transition.

Published: 7/10/2025