Good climate news is pretty rare nowadays. But a new UK assessment suggests it might be less expensive and more practical to curb emissions than once feared. In fact, according to the report, the UK could reach net zero emissions by investing just 0.2% of its GDP per year.

In other words, your path to a low-carbon lifestyle is nowhere near as financially daunting as many had assumed.

Most countries have some sort of climate strategy. A real strategy, not just sticking your head in the sand. Over 100 countries have also pledged to a timeline to reach net zero emissions; some of them have even put it into law. Of course, there’s some debate as to how serious pledging something for 2050 can be, but the UK seems to be taking things pretty seriously.

In 2008, the UK passed a Climate Change Act under which every government is obligated to adopt carbon budgets — five-year limits on total greenhouse gas emissions. They set up a Committee on Climate Change (CCC) as an independent advisory body to provide expert, evidence-based guidance on how to achieve this. The latest report lays out a roadmap for the period ranging from 2033 to 2037. In particular, it evaluated the price tags attached to climate actions.

The report found that the cost of reaching net zero is 73% lower than previously expected.

Why climate action is getting cheaper

There are several reasons for this shift. A big part comes from rapid advances in wind and solar power. Renewable energy is getting much cheaper. More electric vehicles have also helped decarbonize transportation, and electric cars have also become far more efficient than a decade ago.

A big part of this is research. Research made solar and wind energy cheaper and more accessible. It also increased the range of electric cars and showed which types of supportive policies work best. But another big part is scale. As more people buy electric cars or install solar panels, each device becomes cheaper to make, fueling a feedback loop that drives down costs.

“The private sector has a proven record of innovating and delivering rapid transitions in technologies and consumer choices, provided the right incentives are in place. As technologies such as renewable electricity and EVs become cheaper than fossil fuel-based alternatives, global markets for many of the technologies needed to decarbonise economies are growing,” the authors write in the executive summary.

Such changes often follow what experts call an “S-curve” of adoption. In the early stages of all new technologies, costs are usually high and progress moves slowly. Then momentum builds, driving down costs and speeding up uptake. Eventually, a tipping point is reached, and the new technology becomes the default choice. The CCC’s report shows that several low-carbon options — like wind power, solar energy, and electric cars — are nearing or have crossed that tipping point.

Home insulation and saving costs

Electrification, both for energy and for heating and driving, is expected to play the core role in reducing emissions. But better insulation is also an important aspect. Old, uninsulated buildings lose a lot of heat. Upgrading to heat pumps instead of traditional boilers can slash emissions, and these technologies are also on the same growth curve.

“Heat pumps are around three-to-four times more efficient than gas boilers, which should lead to lower household energy bills, provided policy costs are removed from electricity bills. However, UK homes are predominantly designed around gas heating and will need a one-off improvement to be suitable for heat pumps in many cases. This is a sizeable element of the total cost of Net Zero, and households will need policy support with these one-off costs,” the report also reads.

But another important factor doesn’t come from innovation, but rather from expenses. We’re realizing more and more that climate change is expensive. Doing nothing will cost more than we thought. Intense weather events like floods and heatwaves carry a hefty price tag in emergency response and infrastructure repairs. The CCC calculates that robust climate action can curb those risks, sparing taxpayers billions in future costs.

In fact, the report highlights that investment in climate will get more and more cost effective after 2028 and will end up saving taxpayer money in the long run.

Why this matters — and not just for the UK

The UK has already made significant climate progress. The country’s emissions have dropped around 40% since 1990, which is more than many people realize. Much of that achievement comes from shifting away from coal power, which is a “low-hanging fruit.” But further cuts will require more complex work.

While the report focuses only on one country, the news matters for other countries as well. It sends an important signal across the globe, that, especially in the developed world, the climate transition is much cheaper than previously anticipated. If the UK can demonstrate that slashing emissions comes with an affordable price tag, other nations may feel encouraged to follow suit.

Despite the optimism, challenges remain. Even if the overall cost is lower, the initial funding has to come from somewhere. All of this still assumes that policy will support the energy transition, but as we’ve recently seen, that’s not necessarily always the case. Progress is not guaranteed and there can be backslides. Tax incentives could help you purchase an electric car or switch to a low-carbon heating system, but somebody has to foot the initial bill.

There’s also the challenge of fairness. Some worry that wealthier citizens have an easier time affording electric vehicles or installing solar panels on their homes. Low-income households might face hurdles, from the upfront cost of new appliances to limited access to government incentives. The CCC report hints that policymakers need to address these inequalities, ensuring that the transition benefits everyone.

The journey won’t be easy,but it’s worth it. Simply ignoring climate change is a recipe for disaster, and for better or for worse, we all hold a stake in the outcome. Whether you’re a consumer, a voter, or a community leader, your choices matter.