Climate change focus could grow world economy by $26 trillion

Global Commission on the
Economy and Climate report looks at upsides of action on climate
change.
Mike
Hutchings/Reuters

• A new report argues that quicker action on climate
  change could add more than $2 trillion a year to the global
  economy over the next decade.
• The report, from the Global Commission on the Economy
  and Climate (GCEC), argues that increasing investments in
  sustainable technologies would increase economic output
  globally by $26 trillion by 2030.
• “There’s still a perception that moving toward a
  low-carbon path would be costly,” Helen Mountford, the lead
  author of the report said. “What we are trying to do with this
  report is once and for all put the nails in the coffin on that
  idea.”
• The report’s release comes just months after US
  President Donald Trump signalled his intention to pull out of
  the Paris Agreement on climate change.

Bold action on climate change could add more than $2 trillion a
year to the global economy over the next decade, according to a
major new report, which seeks to dispel the belief that tackling
environmental issues will stifle economic growth.

The report from
the
Global Commission on the
Economy and Climate (GCEC) on Wednesday argues that the
world’s politicians and decision-makers are “significantly
underestimating the benefits of cleaner, climate-smart growth.”
It said the global economy could increase in size by $26 trillion
by 2030, if more ambitious steps are taken.

Former heads of government, business leaders, and
economists are all part of the GCEC’s team, and have argued that
the globe is at a crossroads, whereby it needs to fully commit to
sustainable future growth, or see the earth suffer even
more.

“There’s still a perception that moving toward a low-carbon
path would be costly,” Helen Mountford, the lead author of the
report said in an interview with Reuters. “What we are trying to
do with this report is once and for all put the nails in the
coffin on that idea.”

Among the ideas presented in the review, which is backed by
the World Bank’s CEO Kristalina Georgieva, is the creation of
around 65 million new jobs around the world by 2030, all focused
around sustainable industries.

“The growth story of the 21st century will unlock
unprecedented opportunities and deliver a strong, sustainable,
inclusive global economy,” the report said. “The benefits of
climate action are greater than ever before, while the costs of
inaction continue to mount. It is time for a decisive shift to a
new climate economy.”

The GCEC’s report asks governments to prioritise four key
areas of sustainability over the coming years to ensure that the
economic boost it believes is possible actually materialises.
They are:

• “Ramp up efforts on carbon pricing and move to
  mandatory disclosure of climate-related financial
  risks;” 
• “Accelerate investment in sustainable
  infrastructure;”
• “Harness the power of the private sector and unleash
  innovation;”
• “Build a people-centred approach that shares the gains
  equitably and ensures that the transition is
  just.” 

The report’s release comes just months after US President Donald
Trump announced his intention to withdraw the US from the Paris
Agreement on climate change, an accord signed by virtually every
single nation on earth.

At the time, Trump cited the “draconian financial and
economic burdens” that remaining in the agreement would place on
America. He believes, for instance, that moving away from fossil
fuel usage will cripple the coal mining industry, and cost 2.7
million US jobs by 2025.