The United States’ turning point on climate change

Acting on climate change is the new economic engine

Definitive and deliberate climate action could deliver a $3 trillion gain to the US economy over the next 50 years to 2070. In 2070 alone, the economic gain amounts to $885 billion.

Unchecked climate change is a costly choice for the US economy

Over the past 50 years, the US has suffered a total of $1.4 trillion in economic losses due to weather, climate, and water hazards—without action, economic losses will continue to grow. While pathways for the climate and economies are never linear, climate science and Deloitte’s analysis show that an increase in global average temperatures could result in economic losses to the US economy of $14.5 trillion (in present-value terms) over the next 50 years.

See the full report to learn how the United States can use this valuable window of opportunity to rapidly decarbonize its economy.

Decarbonization could catalyze transformational growth in the US economy

The US must make bold investments in a new economic and industrial framework founded on a clean energy system. A net-zero economy would give rise to a new mix of technologies and processes spanning industrials, transportation, food, and beyond. By accelerating decarbonization, the US could complete a total industrial revolution in just 30 years, a feat that could deliver net economic gains by the late 2040s.

The shift would require significant acceleration of current efforts and close collaboration between the public and private sectors to retrain workers in high-emissions industries, and support job transitions in some cases. If executed with care, these actions could create jobs and minimize the social impacts that this historic shift could create.

Our analysis indicates that investing in an accelerated decarbonization timeline now will cost far less than if the investments are made later—in terms of the economic impact, the potential climate damage, and the shared gains of transition for all regions across the US.

An early managed transition to net zero costs less, supports industry transformation, and creates jobs

By coordinating and sequencing its efforts early and correctly, the United States could deliver a lower-cost transformation that supports those adversely affected in the short term, while providing an economy that benefits all Americans in a low-emissions future.

Deloitte’s modeling provides the contours of how that transition could play out. Four distinct phases of decarbonization emerge from our integrated climate and economic scenario.

In the first net-zero decade, there could be GDP growth across all modeled regions of the US and getting there may be less costly than many people think. Deloitte’s full report shows that a relatively small economic investment could transform the US into a more vibrant, resilient, competitive, and sophisticated economy.

Read the full report to explore the four phases of decarbonization.