The recently published impact assessment used the HMRC's macroeconomic model to estimate that the cost of meeting our EU and UK greenhouse gas (GHG) targets would be 0.35 per cent. of GDP in 2020, in the absence of an international deal on climate change. This is in line with the Committee on Climate Change's estimate that the cost of meeting our carbon budgets is less than 1 per cent. of GDP in 2020.
However the cost will come from a combination of private and Government expenditure, depending on the specific policies put in place to deliver the greenhouse gas reductions in each sector of the economy.