Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Reducing Carbon Emissions Would Fuel Global Economy

Climate

Evidence is amassing to discredit those middle-ground politicians who say they think climate change is real but don't think we should address it because of the steep economic costs.

With the right policies, moving from fossil fuels into renewable energy could mean trillions of savings to be invested in economic growth.
Photo credit: Shutterstock

Two reports issued today by the Climate Policy Initiative add to the growing pile of studies showing that moving to clean-energy, low-carbon policies that help mitigate the effects of climate change could actually provide fuel for the economy. They found that moving to such policies could save the global economy trillions of dollars in the next two decades to invest in economic growth. The reports were commissioned by the New Climate Economy project as part of the research conducted for the Global Commission on the Economy and Climate.

“For policymakers around the world wondering whether the transition to a low-carbon economy will help or hurt their countries’ ability to invest for growth, our analysis clearly demonstrates that, for many, the low-carbon transition is a no-brainer," said Climate Policy Initiative's executive director Tom Heller. "It not only reduces climate risks, its benefits are clear and significant."

“Moving to a Low Carbon Economy: The Financial Impact of the Low-Carbon Transition” juxtaposes the costs of low-carbon electricity and low-carbon transportation system with the costs of the current system. “Moving to a Low Carbon Economy: The Impact of Different Policy Pathways on Fossil Fuel Asset Values” looks at the risk and extent of existing fossil fuel assets' loss of value (aka asset-stranding), which would limit governments and businesses’ ability to borrow against them to finance growth and investment, including investment in a clean energy technologies. 

The reports came to a number of conclusions about the positive economic impacts of shifting to policies that favor clean, renewable energy. They found that since governments worldwide and not private companies control 50-70 percent of oil, gas and coal resources, they also have the power to shape policies that can lead to savings or to asset-stranding. They also concluded that the savings in operational costs from renewable energy as opposed to fossil-fuel energy far outweighs the value of the stranded assets. And they assert that transitioning away from coal would provide the greatest benefits in emissions reductions with the least loss in value.

They also urge reducing the cost of financing renewable energy plants to lower the cost of transition worldwide, implementing a planning approach that includes taxes and innovation, and using gas as a bridge fuel in some regions—particularly China and India—until 2030 but saying gas use would have to decrease after that.

“Our analysis reveals that with the right policy choices, over the next twenty years governments can achieve the emissions reductions necessary for a safer, more stable climate and free up trillions for investment in other parts of the economy," said Climate Policy Initiative's senior director David Nelson. "This is even before taking into account the environmental and health benefits of reducing emissions.”

YOU MIGHT ALSO LIKE

Germany's Windiest State Set to Achieve 100-Percent Renewable Energy

10 Incentives Congress Must Renew to Ensure a Clean Energy Future

ALEC Continues Attack on Renewable Energy Policies to Keep America Addicted to Fossil Fuels

EcoWatch Daily Newsletter

Food Tank

By Danielle Nierenberg and Alonso Diaz

With record high unemployment, a reeling global economy, and concerns of food shortages, the world as we know it is changing. But even as these shifts expose inequities in the health and food systems, many experts hope that the current moment offers an opportunity to build a new and more sustainable food system.

Read More Show Less
Pexels

By Brian J. Love and Julie Rieland

The COVID-19 pandemic has disrupted the U.S. recycling industry. Waste sources, quantities and destinations are all in flux, and shutdowns have devastated an industry that was already struggling.

Read More Show Less
Pixabay

By Kris Gunnars, BSc

Unhealthy foods play a primary role in many people gaining weight and developing chronic health conditions, more now than ever before.

Read More Show Less
A man pushes his mother in a wheelchair down Ocean Drive in South Beach, Miami on May 19, 2020, amid the novel coronavirus pandemic. CHANDAN KHANNA / AFP via Getty Images

The U.S. reported more than 55,000 new coronavirus cases on Thursday, in a sign that the outbreak is not letting up as the Fourth of July weekend kicks off.

Read More Show Less
To better understand how people influence the overall health of dolphins, Oklahoma State University's Unmanned Systems Research Institute is developing a drone to collect samples from the spray that comes from their blowholes. Ken Y. / CC by 2.0

By Jason Bruck

Human actions have taken a steep toll on whales and dolphins. Some studies estimate that small whale abundance, which includes dolphins, has fallen 87% since 1980 and thousands of whales die from rope entanglement annually. But humans also cause less obvious harm. Researchers have found changes in the stress levels, reproductive health and respiratory health of these animals, but this valuable data is extremely hard to collect.

Read More Show Less

Sunscreen pollution is accelerating the demise of coral reefs globally by causing permanent DNA damage to coral. gonzalo martinez / iStock / Getty Images Plus

On July 29, Florida Governor Ron DeSantis signed into law a controversial bill prohibiting local governments from banning certain types of sunscreens.

Read More Show Less

Trending

Oat milk is popping up at coffee shops and grocery stores alike, quickly becoming one of the trendiest plant-based milks. jacqueline / CC by 2.0

By Kelli McGrane

Oat milk is popping up at coffee shops and grocery stores alike, quickly becoming one of the trendiest plant-based milks.

Read More Show Less