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UK.gov lacks understanding of climate impact, says watchdog
The National Audit Office says UK government departments and public bodies have a poor understanding of the financial risks posed by climate change and the shift to low-carbon energy. The gaps matter because public services will need to adapt, and Parliament lacks clear information on the resilience of infrastructure, services and public finances.
Bodies anticipate costs from extreme weather, rising temperatures and changing rainfall, as well as repairs, upgrades and higher energy bills. The NAO found that reports explained physical risks in more detail than transition risks, such as the cost of new technology, regulations and supply disruption; large central government bodies began making climate disclosures for 2025-26, and the watchdog expects them to improve over time.
In short
- The NAO says public bodies poorly understand climate-related financial risks.
- Expected costs include infrastructure repairs, adaptation and higher energy bills.
- Climate disclosures began in 2025-26, but need to become more useful.
Explained simply
Climate change creates two kinds of risks for government. Physical risks include damage from floods, heat and changing rainfall; transition risks arise as the UK moves towards lower-carbon energy, bringing changes in technology, rules and supply chains.
UK departments and public bodies run services and infrastructure that may need repairs or upgrades, and they pay energy bills from public funds. The National Audit Office is an independent watchdog that examines how government uses public money, while Parliament scrutinises its decisions and spending.
Understanding these risks can help government plan for future costs and keep services running. Clear information also helps Parliament assess whether public infrastructure, services and finances are prepared for climate change and the shift to low-carbon energy.
Art Climate Culture Government Politics Science