Public bodies in the UK expect higher operating costs and energy charges as a result of climate changes and the transition to lower carbon energy, but few have a good picture of the risks, according to government auditors. A new report from the National Audit Office (NAO) says some public bodies expect financial impact from the risks they identified, although bodies were often not able to cost these – even approximately. "Bodies anticipate costs to arise from damage to assets and infrastructure, driven by physical damage from extreme weather, as well as from chronic shifts to higher temperatures and more precipitation. Bodies also expect higher maintenance and repair costs, potential asset upgrades, and transition costs. Many bodies expect increased operating costs, including energy charges. Bodies controlling significant property or infrastructure are particularly concerned with decarbonization and adaptation costs," the report stated. His Majesty’s Treasury (HMT) has set out rules for climate-related financial disclosure in larger central government bodies’ annual reports, which produced their first set of reports for the 2025-26 financial year. Other rules for disclosure have been in place since 2022. However, the NAO found [PDF] that understanding of the risks in the impact of climate change – increasing temperatures, higher risk of flooding, higher winds and longer droughts – was poor, as was insight into costs of moving to a low-carbon economy…