UKYCC Statement
The paradox of 'growth at any cost'
Last week, UK Chancellor Rachel Reeves told the World Economic Forum - the annual summit for the super-rich held in Davos, Switzerland - that economic growth is the government's "number one mission", no matter the cost.
The consequences of this position are bleak: on Friday, the government blocked a Climate and Nature Bill that would have held it accountable to its own previous environmental commitments. This week, Reeves has endorsed proposals for a third runway at Heathrow Airport, flying in the face of all economic and environmental logic.
Our government's obsession with growth as its core measure of success - rather than the wellbeing of people and planet - sits dangerously opposed to scientific evidence. According to the Potsdam Institute for Climate Impact Research, the impacts of climate change are set to shrink the global economy by 19% by 2050, even if we stopped all emissions overnight. Over the next 50 years, climate related shocks could reduce global economic output by up to 50%. Economy and environment cannot be decoupled; neglecting either will ultimately destroy them both.
Airport expansion is a fool's errand
Even in the short-term, environmentally destructive projects such as airport expansion won't deliver the economic benefits that Reeves expects. Research from the New Economics Foundation shows no correlation between air travel and economic growth, even before factoring in wider costs to public and planetary health.
In recent decades the number of flights has doubled every 15 years, wiping out any gains made in aircraft efficiency. The aviation industry plans to double global air traffic by 2040, but technologies to decarbonise aviation (e.g. electric flight and 'sustainable' aviation fuels) are many decades away from being widely used. We need to halve global emissions by 2030, and the growth of the aviation sector is completely incompatible with this goal.
What's more, access to flying is highly unequal, with a tiny proportion of people responsible for the vast majority of emissions from aviation. Investing instead in sustainable transport, including high-speed rail, would generate more jobs, build economic resilience, and help meet the UK’s net-zero targets.
We need a just transition and a new economic model
UKYCC advocates for a just transition to a sustainable future. Our goal is the wellbeing of communities, workers, and the environment. Instead, the government’s emphasis on economic growth above all else leads to decisions that harm everyone, and especially the most vulnerable.
Rather than clinging to this outdated economic model, we need an ambitious vision for economic transformation, putting people and planet first. In the transport sector, this means policies that promote sustainable and affordable mobility, creating jobs and prosperity without destroying the environment.
Pursuing growth at any cost is a disservice to the young people and future generations who will bear the brunt of these costs. The sooner we recognise the need for genuine change, the sooner we can build a clean, fair future for the UK.
Want to learn more about economics for a sustainable future? Check out our campaign, It's Just Economics!
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