A report released on Tuesday by sustainable development consultancy Arup and economics advisory firm Oxford Economics has projected that green industries that aim to help the world shift to net-zero emissions could be worth $10.3 trillion to the global economy by 2050.
Effects of climate change that has resulted in severe heatwaves to floods, extreme weather events are costly and they continue to cause upheaval across the globe, thereby pushing governments and industries to seek to cut greenhouse gas emissions and mitigate climate change.
“As economists, we have to be honest about the fact that mitigating climate change will be expensive. But the transition to a carbon-neutral global economy also presents compelling opportunities,” Oxford Economics’ Chief Executive Adrian Cooper said in a statement that was credited to the organization.
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By mid-century, the analysts say, emerging new markets for carbon-neutral goods and services that help reach the Paris Agreement net-zero target will be worth $10.3 trillion, or about 5% of projected gross domestic product (GDP).
According to the report, this includes the direct contribution to GDP of electric vehicles manufacturing, renewable power generation, clean energy equipment manufacturing, renewable fuels and green finance and the activity supported across global supply chains.
As industries shift to clean power amid a global energy supply crisis, that resulting disruptions will create new competitive opportunities for companies able to adapt quickly to changing demands, the report also shows.
If government and other stakeholders put efforts together to combat climate change instead pf leaving it unchecked, or poorly tackled, green transition would lead to substantial productivity gains, the analyst found out.
“This report shows the green transition is not a burden on the global economy, but a substantial opportunity to bring about a greater and more inclusive prosperity,” Arup Global Strategy Skills Leader Brice Richard said.
Story was adapted from Reuters.
