If countries intend to achieve net-zero greenhouse gas emissions by 2050, it would cost them trillions of dollars, a new report says. However, it also noted that the price of climate change, if not addressed, will be more expensive.
Goal of Net-Zero Emission
A group of energy companies, the Energy Transitions Commission, published a new report on Wednesday that suggests the possibility of reaching zero GHG. Among the firms included in the commission include Royal Dutch Shell and BP.
A profound transformation of the global energy system is ahead of us. The #MakingMissionPossoible report shows that…
Furthermore, the report indicates that it would cost around $1 trillion to $2 trillion every year if nations intend to achieve such a goal in the middle of this century. Essentially, pursuing the green goal would cut around 1 percent to 1.5 percent from global GDP, CNN Business said. Overall, the spending could reach $55 trillion until 2050.
The Paris Climate Agreement intends to limit the rise in global warming to 1.5 degrees Celcius. However, it would require zero emissions of greenhouse gases by the year 2050.
‘Zero Must Mean Zero’
According to the co-chair of the commission, Adair Turner, a zero-carbon economy is “technically and economically possible.”
In order to achieve the net-zero aim, the commission recommends large-scale electrification of industries, buildings, and transport, Bloomberg said. But in regions where electrification is not possible, hydrogen and biofuels could serve as solutions. Additionally, a large portion of the investment would need power plants harnessing clean energy sources.
“Zero must mean zero, not a plan which relies on the permanent and large-scale use of ‘offsets’ to balance continued greenhouse gas emissions,” Turner added.
The ETC chair further warned that the actions for the next decade will be crucial. The report also suggests dropping dependency on coal-fueled power plants. Meanwhile, the report said China, a huge coal-dependent nation, could execute decarbonization. Efforts would have to include rapid and aggressive investments in solar and wind energy.
One week before the ETC report, a separate one from the US Commodity Futures Trading Commission said that the impact of climate change could potentially harm the economy in the long run.