The Association for Renewable Energy and Clean Technology (REA) has called for an acceleration in the deployment of renewable energy and clean technologies to reduce emissions in the UK.
The REA is responding to the UK’s Third Climate Change Risk Assessment forecast that 2 degrees Celsius warming would reduce gross domestic product (GDP) by 1% a year by 2045.
The new report assesses dozens of impacts the UK might face due to global temperature increases through to 2050 and 2080, outlining the likely risks in two warming scenarios of 2 degrees C and 4 degrees C.
The risks include: water scarcity; loss of agricultural productivity; risk to health and wellbeing; coastal erosion and flooding; and risks to finance, investment and insurance.
The report also assesses the impact of the UK being exposed to international risks caused by the climate crisis, affecting trade and investment.
For eight of the risks assessed, economic damages will exceed £1bn each year by 2050, even if warming is limited to 2C.
The report states the total hit is likely to be at least 1% of GDP in a 2C scenario when all the risks are assessed.
The REA said that the report underlines the substantial economic hit that will occur if key Net Zero targets are not met, and that measures – such as adopting six monthly CfD auctions for all pots – need to be quickly implemented.
REA chief executive Nina Skorupska said: “The Government’s own risk assessment confirms that, even if global warming is limited to 2C, it would still wipe out 1% of GDP a year by 2045, underling the huge impact to the UK economy if the Government fails to meet its Net Zero targets
“That is why we need to urgently see a new raft of measures to help accelerate the energy transition, such as the adoption of six monthly CfD auctions for all pots, bringing forward the 5GW hydrogen production target, and stepping up plans for industrial and non-domestic heat decarbonisation.”