New Forecast Of Costs For Fighting The Climate Crisis

McKinsey: fundamental transformation of global economy needed for net zero; $9tn of annual investment required to avoid most catastrophic climate impacts, consultancy says

Damian Carrington, 25 January 2022 (UK Guardian)

“…$9.2tn will need to be invested every year for decades to limit the global temperature rise to 1.5C and end the climate emergency... [According global consultant McKinsey, that] is a 40% increase on current investment levels and equivalent to half of global corporate profits…[The vitally needed] economic transformation will affect every country and every sector, with those most reliant on fossil-fuel-burning experiencing the most change…[T]he transition will be front-loaded with, for example, the cost of electricity rising before falling later…[but there will be low-carbon investment opportunities that] lead to a lower-cost, more efficient economy…

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…[T]he transformation becomes more expensive the longer action is delayed…[and this] front-loaded transformation raises a ‘critical question’ of who will pay and whether higher costs of electricity, steel and cement are passed on to people or whether those on low-incomes are protected by governments…[I]nvestment in energy, transport, buildings, industry and agriculture would need to rise by $3.5tn, with an additional $1tn of today’s spending switching from high-carbon to low-carbon goods, such as electric cars and heat pumps…

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…[The cost’s percent of GDP start at] 6.8%, rising to as much as 8.8% between 2026 and 2030 before falling…[E]lectricity costs could rise by 25% by 2040 before falling below today’s levels after 2050, because of the lower operating cost of renewable energy. Steel and cement face cost increases of about 30% and 45% respectively…” click here for more

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