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Time is no longer running out to act on climate change; it’s up, and the global economy is at a crossroads. But, if the world acts now to rapidly achieve net-zero emissions by mid-century, the transformation of the economy would set the world up for stronger economic growth by 2070.
Such a transformation could increase the size of the world economy by $43 trillion in net present value terms from 2021-2070. We have the technologies, business models, and policy approaches today to deliver rapid decarbonization and limit global warming to as close to 1.5°C by century’s end.
We cannot afford to waste another year, another month, debating the merits of doing something versus doing nothing. As leaders, every choice, every day is a chance to speed the realization of that vision.
Global Summary Highlights
Economic Imperative
The cost of action and inaction
Unchecked climate change could cost the global economy $178 trillion in net present value terms from 2021-2070. The human costs would be far greater: a lack of food and water, a loss of jobs, worsening health and well-being, reduced standard of living.
Source: Deloitte Economics Institute
On the other hand, if the world acts now to rapidly achieve net-zero emissions by mid-century, the transformation of the economy would set the world up for stronger economic growth by 2070, according to our analysis. Such a transformation could increase the size of the world economy by $43 trillion in net present value terms from 2021-2070.
Source: Deloitte Economics Institute
Find out the cost of climate action and inaction in our new report by Deloitte Economics Institute.
An investment that pays off
With global coordination and rapid action, every region can realize economic benefits from achieving net-zero emissions by 2050.
We already have many of the technologies, business models, and policy approaches today to deliver rapid decarbonization and limit global warming to as close to 1.5 °C as possible by century’s end. As a result, globally, we could enjoy USD$43 trillion in economic gains (net present value) between 2021 and 2070 compared to a climate-damaged baseline.
Source: Deloitte Economics Institute
Time to act—accelerating to zero
Four phases will shape our economic and climatic future
With global emissions continuing to rise over the last two decades, we have squandered the chance to decarbonize at our leisure. The global economy needs to execute a rapid, coordinated, sequenced energy and industrial transition that will play out in distinct phases.
- 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.
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