The Committee on Climate Change (CCC) has warned the Treasury that ensuring the costs of the net zero transition are distributed fairly will be a key challenge.
In a letter on 17 October to Exchequer Secretary, Simon Clarke, CCC Chair, Lord Deben, mapped out the committee’s expectations for the Treasury’s forthcoming decarbonisation funding review, stating it will be “crucial in ensuring a successful transition”.
The CCC called for the review to develop a plan for funding decarbonisation and emphasised the importance of reviewing the distribution of costs for businesses, households and the Exchequer. It further set out how with the next 10 years set to be a key period for public funding, with new markets developing and innovation occurring, the review should consider near-term as well as long-term decarbonisation funding needs and policy implications.
In the letter, Deben also revealed the CCC is planning to publish its advice on the sixth carbon budget, set to lay out the path to net zero, in September 2020.