Global Commission on the Economy and Climate has released Unlocking the Inclusive Growth Story of the 21st Century, a report that finds we are significantly under-estimating the benefits of cleaner, climate-smart growth. Bold climate action could deliver at least $26 trillion in economic benefits through to 2030, compared with business-as-usual.
The report finds that over the last decade there has been tremendous technological and market progress driving the shift to a new climate economy. There are real benefits to be seen in terms of new jobs, economic savings, competitiveness and market opportunities, and improved wellbeing for people worldwide. Momentum is building behind this shift by a wide range of cities, governments, businesses, investors and others around the world, but it is not yet fast enough.
“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. “Policymakers 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. $26 trillion and a more sustainable planet are on offer, if we act decisively now.”
The report highlights opportunities in five key economic systems — energy, cities, food and land use, water, and industry. It demonstrates that ambitious action across these systems could deliver net economic gains compared with business-as-usual and:
- Generate more than 65 million new low-carbon jobs in 2030, equivalent to today’s entire workforces of the United Kingdom and Egypt combined
- Avoid more than 700,000 premature deaths from air pollution in 2030
- Generate, through just subsidy reform and carbon pricing, an estimated $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
“We can now see that this new growth story embodies very powerful dynamics: innovation, learning-by-doing, and economies of scale. Further, it offers us the very attractive combination of cities where we can move, breathe, and be productive; sustainable infrastructure that is not only clean and efficient, but also withstands increasingly frequent and severe climate extremes; and ecosystems that are more productive, robust, and resilient,” said Lord Nicholas Stern, I G Patel Professor of Economics and Government at the LSE and co-chair of the Global Commission. “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.”
The Global Commission calls on governments, business, and finance
