Economic Imperative

Unchecked climate change could cost the global economy $178 trillion in net present value terms from 2021-2070. The human costs would be far greater: a lack of food and water, a loss of jobs, worsening health and well-being, reduced standard of living.

_{Source: Deloitte Economics Institute}

On the other hand, if the world acts now to rapidly achieve net-zero emissions by mid-century, the transformation of the economy would set the world up for stronger economic growth by 2070, according to our analysis. Such a transformation could increase the size of the world economy by $43 trillion in net present value terms from 2021-2070.

_{Source: Deloitte Economics Institute}

Find out the cost of climate action and inaction in our new report by Deloitte Economics Institute.

An investment that pays off

We already have many of the technologies, business models, and policy approaches today to deliver rapid decarbonisation and limit global warming to as close to 1.5 °C as possible by century’s end. As a result, globally, we could enjoy USD$43 trillion in economic gains (net present value) between 2021 and 2070 compared to a climate-damaged baseline.

_{Source: Deloitte Economics Institute}

Learn more in our new Global Turning Point report.

Time to act—accelerating to zero

With global emissions continuing to rise over the last two decades, we have squandered the chance to decarbonise at our leisure. The global economy needs to execute a rapid, co-ordinated, sequenced energy and industrial transition that will play out in distinct phases.

• Bold climate plays: Coordination and collaboration set the stage for decarbonisation by formulating policies and frameworks for a low-carbon future.
• Accelerating to net zero: Deep investment across systems instigates structural economic adjustments. The decline of emissions-intensive industries would create growing pains for some economies.
• Turning point: Investment in structural economic adjustment is almost complete. Economies would realise the dividend of the transformation and experience net positive growth.
• Low-emission future: Interconnected, low-carbon systems underpin a clean economy that would grow at an increasingly faster rate than its carbon-intensive alternative.

Download Deloitte’s new global economic climate report.