Fossil fuels are cheap in part because their price does not reflect the damage they cause – from rising temperatures to impacts on health, property and the natural world. Cutting emissions means bringing those hidden costs into the price of energy. And that has consequences.
“My costs go up, my bills go up and my standard of living goes down,” says Sir Dieter. There is, he argues, no easy way around that. “The evidence suggests it is going to be more expensive.”
That presents a dilemma for governments. The bet behind today’s push for clean power is that countries, like the UK, can show it is possible to decarbonise the grid without imposing unacceptable costs – and in doing so, lead the way for others.
The Office of Budget Responsibility has said “the costs of failing to get climate change under control would be much larger than those of bringing emissions down to zero.” But achieving that requires global emissions cuts.
There is also the argument that getting off gas quicker reduces vulnerability to price shocks. But there is a risk. If the transition here in the UK drives up costs and erodes public support, it will not be a model to follow, but a warning to avoid.
And yet the urgency of cutting emissions is not in doubt. The World Meteorological Organization warns the Earth is now further out of balance than at any time in recorded history, with the planet absorbing far more heat than it can release. As the UN Secretary General António Guterres has put it, “every key climate indicator is flashing red”.
If Sir Dieter is right, governments will have to be honest: the transition will cost more. The challenge – and it is a tough one – is persuading the public it is worth it.
Top image credit: Getty Images
Clarification 18 May 2026: The article has been updated to include further information about the running costs of Gavin Tait’s heat pump.
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