Covid, Roger Leon, UK discussed on Bloomberg Daybreak Europe


The UK will not be required to undergo isolation arrival from November 1st Now in Wales there are new targets under the government's COVID vaccine plans with all 12 to 15 year olds to be offered a jab by the start of the month It's hoped everyone eligible for a booster will have had a chance to get it by the 31st of November There are also a big push over in Wales a fort flew jabs this year too And the world's 20 richest countries will meet later to discuss their approach to dealing with the Taliban Now that they're in charge of Afghanistan the G 20 which includes Russia and China will gather after Italy's prime minister said they need to find a sharp objectives to save lives and prevent a terrorism Yesterday the U.S. agreed to send humanitarian aid to the Afghan people but continued to refuse to recognize the Taliban politically Global news 24 hours a day on air and on Bloomberg quick take powered by more than 2700 journalists and analysts in more than 120 countries and January this is Bloomberg roger Leon thank you Garrett with the latest global news Now it's time for Bloomberg green our weekly deep dive into key issues on climate and how it's changing business finance and politics This week the cost of making Britain greener than he report from the institute for fiscal study says reaching net zero emissions by 2050 is going to be much more expensive than it needs to be because of the complex inconsistent or nonexistent policies where we're joined by Isaac Zelle ASTRO whose research economist at IFS co author of the report Isaac thanks so much for being with us very good morning to you What about current UK climate policy is making the transition to net zero more difficult Yes morning roger So I think the place to start is to say that the classic economic textbook answer to problem like climate change is that very simply what you do is you impose a tax on carbon and that makes producing emissions more expensive and disincentivizes them So what we try to do in this bit of work is we've tried to do essentially audit of all the policies that are in place in the UK and try and see how those translate into affected carbon taxes in the UK economy So what we found is that over the last three decades or so governments are put in place an amazingly complex patchwork of different policy initiatives Many of those policies have been very well intentioned in all of themselves But when you take them together what you find is that there's really quite an incoherent picture ends up being painted in the sense that we're essentially very high carbon taxes in some parts of the economy and much lower carbon taxes in other parts of the economy once you take all these schemes together So just give you a few examples If you look at the carbon content of business electricity so the electricity consumed by many businesses or if you look at the carbon content of diesel and petrol those things have effectively quite high carbon taxes levied on them But then if you look at things like household gas burn for home heating obviously and if you look at things like a lot of long haul aviation you find that those things are effectively tax subsidized And so if you end up having this very inconsistent picture of how much your pricing carbon at the overall effect of that is going to mean that we end up spending a lot more than we need to to reach net zero is going to make it more costly and the less efficient transition is actually Okay so it's a real patchwork at the moment If you were in charge what kind of two or three things would you have top of the list And obviously this is in focus for Boris Johnson ahead of cop 26 Absolutely So I think one of the big focus is really has to be consistency So it's not necessarily about saying there's this one panacea policy that's going to make everything better that's going to fix the system I think the way we need to move is just to try and work out how we can increase this incentives to consume some of these things where at the moment we're really not providing any disincentive at all So I mentioned household gas That's a really important one Because it's a big it's a big source of emissions and it's also additions that haven't fallen very much over the last 30 years or so So providing a disincentive for people to use maybe quite as much gas or to switch away to more green forms of household heating would be a really good thing Now of course as we've seen recently there's been a great deal of political pressure on things like the gas price So they're probably would have to be gradual transition toward something like that And also it's really worth noting that there are these pretty complicated and very difficult equality questions here as well So one thing one thing we found in our research is that if you look at the poorest 10% of households each pound that those households spend is associated with about 20% more emissions than for the richest 10% The divisions in the country exist right across including in terms of working towards net zero Isaac.

Coming up next