Major new report calls on greener growth
The world’s economy could see a $26 trillion boost by 2030…if nations adopt policies for greener growth.
A major new study published Wednesday (Sept. 5) says that we are significantly underestimating the benefits of cleaner, climate-smart growth.
The report comes from the Global Commission on the Economy and Climate, which includes former government heads, economists, and business leaders.
Although it says that momentum is building with governments, business, and investors, it is not happening fast enough. But if things change then there are real benefits for new jobs, economic savings, competitiveness and market opportunities, and improved wellbeing for people worldwide.
“We are at a unique “use it or lose it” moment”, said Ngozi Okonjo-Iweala, former Finance Minister of Nigeria and Co-Chair of the Global Commission. “Policy makers should take their feet off the brakes, send a clear signal that the new growth story is here and that it comes with exciting economic and market opportunities. US$26 trillion and a more sustainable planet are on offer, if we act decisively now.”
The report, “Unlocking the Inclusive Growth Story of the 21st Century” will be presented to the United Nations at its New York HQ Wednesday.
The benefits
Several key benefits to the global economy of embracing greener growth are highlighted in the report:
- Generate over 65 million new low-carbon jobs in 2030, equivalent to today's entire workforces of the UK and Egypt combined.
- Avoid over 700,000 premature deaths from air pollution in 2030.
- Generate, through just subsidy reform and carbon pricing, an estimated US$2.8 trillion in government revenues per year in 2030 - equivalent to the total GDP of India today - funds that can be used to invest in other public priorities or reduce distorting taxes.
Unstoppable momentum
“The momentum from businesses, states, cities, investors and citizens is now unstoppable, not least because those taking bold climate action are already seeing tangible benefits,” said Paul Polman, CEO, Unilever and Co-Chair of the Global Commission. “But if we are to unlock the full benefits of this new low carbon growth opportunity and avoid runaway climate change, economic and financial leaders in both government and the private sector need to do even more, and fast.”
The Commission is calling on leaders from government, business, and finance, to take action now including:
- 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; and
- Build a people-centred approach that shares the gains equitably and ensures that the transition is just.
“Current economic models fail to capture both the powerful dynamics and the very attractive qualities of new technologies and structures. Thus we know we are grossly underestimating the benefits of this new growth story. And further, it becomes ever more clear that the risks of the damage from climate change are immense and tipping points and irreversibilities getting ever closer,” said Lord Nicholas Stern, I G Patel Professor of Economics and Government at the LSE and Co-Chair of the Global Commission.
