THE WORLD’S $1.8 TRIL PROFIT IN NEW ENERGY

Moving to a Low-Carbon Economy; A low-carbon energy transition can save the global economy trillions over the next 20 years.

October 2014 (Climate Policy Initiative)

“…[T]wo reports clearly demonstrate that, with the right policies, a low-carbon energy system consistent with avoiding the most damaging effects of climate change could free up trillions of dollars over the next 20 years to invest in better economic growth…[Moving to a Low Carbon Economy: The Financial Impact of the Low-Carbon Transition] compares the costs of low-carbon electricity and low-carbon transportation systems with current systems…[Moving to a Low Carbon Economy: The Impact of Different Policy Pathways on Fossil Fuel Asset Values] focuses on the risk of losses in the financial value of existing fossil fuel assets (so called ‘asset stranding’). A loss in assets’ value is critical because it constrains governments and businesses’ ability to borrow against them to finance growth and investment, including investment in a low-carbon transition…Governments, rather than private investors and corporations, face the majority of stranding risk…[because they] own 50-70% of global oil, gas, and coal resources, as well as collect taxes and royalties on the portion they do not own…

“…[G]overnments also control much of the policy that could lead either to asset stranding or financial savings…Transitioning to a low-carbon electricity system would bring the global economy an estimated $1.8 trillion in financial savings between 2015 and 2035…[because] reduced operational costs associated with extracting and transporting coal and gas outweighs increased financing costs for renewable energy and losses in the value of existing fossil fuel assets…” click here for more

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