A new Deloitte Report Outlines the cost of Climate Inaction
A new report, “The Turing Point - A Global Summary” recently published by Deloitte, outlines the true costs of climate inaction. This report goes on to explain that if we do not address climate change aggressively and right away, this inaction could cost the global economy $178 trillion in net present value terms by the year 2070. While this financial cost is steep, the human costs would be even more severe. However, if the world were to act right now, and rapidly achieves net-zero emissions by mid-century, not only could we avoid surpassing the 1.5 degrees Celsius threshold, but we could in fact increase the size of the world economy by $43 trillion be 2070.
The Facts.
Deloitte actually broke down the costs and impacts of inaction and action around climate change by region. Regions include, Europe, Asia Pacific, and The United States. South America is coming soon to this report. As mentioned in ESG Today,
The economic impact would be most significant in Asia Pacific, with the present value of losses through 2070 estimated at $96 trillion, followed by the Americas at $36 trillion and Europe at $10 trillion.
The upside from the coordinated climate action scenario similarly benefits Asia Pacific the most, with a modelled 5.7% boost to GDP in 2070, followed by Europe at 1.8% and the Americas at 1.6%. Beyond reducing the harm of climate change, the scenario envisions a reorientation of the global economy, bringing new jobs, industries and innovations.
The report goes on to outline that essentially, in order to achieve the positive changes, economic growth, and protect our people and planet, the world needs an full out industrial revolution. The bottom line? Investing in an accelerated decarbonization timeline now will cost far less than if the investments are made later
The facts of climate change are clear. The economics are clear. We cannot afford to waste another year, another month, on debating the merits of taking decisive action today versus continuing to take insufficient action - Deloitte’s, The Turning Point - A Global Summary
What needs to happen to succeed?
First and foremost, there is still hope. As it turns out much of the technology, business models, and policy approaches we are seeing today could deliver the rapid results the world needs to limit global warming to that 1.5C threshold.
The true challenges being faces are not only would action need to happen immediately, but we must use what we have effectively and at a coordinated, global scale. This report outlines four distinct phases that would need to happen. Those phases, directly from the report summary, are as follows:
Bold climate plays: Coordination and collaboration set the stage for decarbonization by formulating policies and frameworks for a low-carbon future.
Accelerating to net zero: Deep investment across systems instigates structural economic adjustments. The decline of emissions-intensive industries would create growing pains for some economies.
Turning point: Investment in structural economic adjustment is almost complete. Economies would realize the dividend of the transformation and experience net positive growth.
Low-emission future: Interconnected, low-carbon systems underpin a clean economy that would grow at an increasingly faster rate than its carbon-intensive alternative.
We are seeing changes that are leaning towards all of the recommendations made in this report across the globe. The question of, “Is this possible?” is a resounding yes. It just needs to needs to happen now and everyone must work together to do so.
We’ve said it once, we’ll say it a million more times. Sustainability starts with Sustaira. Will you join the journey?
Sources:
https://www.esgtoday.com/deloitte-pegs-price-tag-of-climate-inaction-at-178-trillion-over-50-years/
