U.K. Treasury Backs $1.3 Trillion Plan to Cut Emissions

(Bloomberg) --

The U.K. Treasury supports a plan to reduce greenhouse gas emissions to zero by 2050, but wants a review before signing off on a policy it estimates will cost taxpayers 1 trillion pounds ($1.3 trillion), according to a person familiar with the matter.

The Financial Times reported Thursday that Chancellor of the Exchequer Philip Hammond had written to Prime Minister Theresa May outlining the cost and pointing out it would mean less money available for schools, police, hospitals and other public spending. The person confirmed the FT report and said the calculation is based on annual estimates by the Committee on Climate Change, the U.K.’s independent adviser on the subject.

Read more: U.K. Poised to Back Net Zero Greenhouse Gas Target for 2050

The Treasury supports the emissions reduction target but wants a review before the final decision is made, the person said.

Adopting the target would amount to the most stringent curbs on greenhouse gases of any major economy. It was recommended last month by the Committee on Climate Change, which said Britons need to fly less, drive electric cars, eat less meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit). The U.K. already has a target to cut greenhouse gases by 80% by 2050, but the last fifth is likely to be the hardest reduction to make.

May’s de facto deputy, David Lidington, told the House of Commons on Wednesday that the government plans to announce its decision on the net zero target at the “earliest possible opportunity.”

May’s spokeswoman Alison Donnelly refused to comment on the details of Hammond’s letter reported by the the Financial Times but said the cost of reaching the net zero emissions target is expected to drop as technology develops.

“This is the right thing to do, and it’s a question of when and not if we get to net zero,” she told reporters. “It’s not right to frame this as a trade-off against public spending.”

In the European Union, countries including France, Belgium, Portugal, Spain and Sweden are urging the bloc to adopt the same zero-emissions target for 2050.

©2019 Bloomberg L.P.