{"id":422027,"date":"2026-01-19T09:10:17","date_gmt":"2026-01-19T08:10:17","guid":{"rendered":"https:\/\/climatescience.press\/?p=422027"},"modified":"2026-01-19T10:19:35","modified_gmt":"2026-01-19T09:19:35","slug":"net-zero-is-slowing-growth-bank-of-england-warns","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=422027","title":{"rendered":"Net Zero is Slowing Growth, Bank of England Warns"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Governor says climate change and initiatives to tackle it risk damaging the economy<\/strong><\/p>\n\n\n\n

Net zero policies are slowing the global economy, Andrew Bailey has warned.<\/p>\n\n\n\n

Both climate change and initiatives to tackle it are among the main factors dragging down growth, the Governor of the Bank of England said in a speech. The Telegraph<\/a> has the story.<\/em><\/strong><\/p>\n\n\n\n

Mr Bailey said \u201cheadwinds\u201d facing the world economy included \u201cclimate-related economic shocks and the consequences of the policies chosen to tackle these shocks\u201d.<\/p>\n\n\n\n

Britain\u2019s main policy for tackling climate change is the drive to net zero, which has had sweeping consequences for the economy<\/a>.<\/p>\n\n\n\n

The cost of switching to electricity and levies on fossil fuels have been blamed for the UK\u2019s extraordinarily high energy prices<\/a> and the shutdown of heavy industry.<\/p>\n\n\n\n

Mr Bailey\u2019s comments are likely to fuel debate about the speed and cost of reaching net zero, as Labour races to decarbonise Britain\u2019s electricity network by 2030. Critics say the artificial deadline is creating unnecessary costs for the households and businesses, calling for slower reforms.<\/p>\n\n\n\n

The Climate Change Commission estimates reaching net zero by 2050 will involve a net cost of \u00a34bn per year \u2013 around \u00a3100bn in total.<\/p>\n\n\n\n

The Institute of Economic Affairs said the cost of net zero in the UK<\/a> could be more than \u00a37.6tn.<\/p>\n\n\n\n

Mr Bailey has acknowledged some of these costs previously. In 2021, he said shifting from coal to less polluting fuels may result in \u201cpermanent higher level of prices\u201d.<\/p>\n\n\n\n

But the Governor has also argued that the costs of failing to act on the climate may be even larger than net zero.<\/p>\n\n\n\n

In 2020, he said climate change is \u201ceven bigger and more complex\u201d than the Covid pandemic or the financial crisis, and the following year he argued that \u201cignoring [the effects of climate change] is not an answer. Indeed, the longer we wait, the greater the costs of adjustment\u201d.<\/p>\n\n\n\n

In his speech this week, the Governor said net zero and climate change were one of several factors dragging on global growth<\/a>.<\/p>\n\n\n\n

Read the full story here<\/a>.<\/em><\/strong><\/p>\n\n\n\n

I<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Net zero policies are slowing the global economy, Andrew Bailey has warned.
\nBoth climate change and initiatives to tackle it are among the main factors dragging down growth, the Governor of the Bank of England said in a speech.<\/p>\n","protected":false},"author":121246920,"featured_media":422030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":true,"token":"eyJpbWciOiJodHRwczpcL1wvaTAud3AuY29tXC9jbGltYXRlLXNjaWVuY2UucHJlc3NcL3dwLWNvbnRlbnRcL3VwbG9hZHNcLzIwMjZcLzAxXC8wQVFPQUlqamJ2eTFQOTVudDcyMW5hZnFuMC1hdzZveFdmakJnRFRUMzNhZ01rclQ3MDZoSTJ1aXFRN1E3MWtiMllWbkNXVnljWHZPSE5MYm1DLXlvZmhyLXlYUjIzQVRIT1ZTT0VjSUk3OG9aR08yNC1rdWtXNUt5WVN5Zll4NXQtMS5qcGVnP2ZpdD03MjMlMkM0NDEmc3NsPTEiLCJ0eHQiOiJOZXQgWmVybyBpcyBTbG93aW5nIEdyb3d0aCwgQmFuayBvZiBFbmdsYW5kIFdhcm5zIiwidGVtcGxhdGUiOiJoaWdod2F5IiwiZm9udCI6IiIsImJsb2dfaWQiOjE1NTgxMjQ0OX0.L1-_7gc0GU8YI4D6ampiKGEc4kcRsxz6bgh_Jh6XDeEMQ"},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691840803,691820165,691818056,691840044,691819180,691819630,691820166],"class_list":["post-422027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-andrew-bailey","tag-bank-of-england","tag-climate-change","tag-climate-change-commission","tag-energy-costs","tag-energy-crisis","tag-uk-economy","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/0AQOAIjjbvy1P95nt721nafqn0-aw6oxWfjBgDTT33agMkrT706hI2uiqQ7Q71kb2YVnCWVycXvOHNLbmC-yofhr-yXR23ATHOVSOEcII78oZGO24-kukW5KyYSyfYx5t-1.jpeg?fit=1366%2C832&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1LMT","jetpack-related-posts":[{"id":289124,"url":"https:\/\/climatescience.press\/?p=289124","url_meta":{"origin":422027,"position":0},"title":"Lord Frost calls for Bank of England climate role to go","author":"uwe.roland.gross","date":"11\/29\/2023","format":false,"excerpt":"From Net Zero Watch The former chief Brexit negotiator Lord Frost has welcomed a Parliamentary report that called for the Bank of England to lose its remit to fight climate change. The report, from the House of Lords Economic Affairs Committee, was published on Monday, and noted that numerous witnesses\u2026","rel":"","context":"In \"Bank of England\"","block_context":{"text":"Bank of England","link":"https:\/\/climatescience.press\/?tag=bank-of-england"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0NZW_Frost.png?fit=1200%2C632&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0NZW_Frost.png?fit=1200%2C632&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0NZW_Frost.png?fit=1200%2C632&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0NZW_Frost.png?fit=1200%2C632&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0NZW_Frost.png?fit=1200%2C632&ssl=1&resize=1050%2C600 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