Davos, Switzerland, May 23, 2022—A new report from the Deloitte Center for Sustainable Progress (DCSP), released today during the World Economic Forum's annual meeting, shows that climate change, if left unchecked, will It shows that it could cost the global economy US$178 trillion over 50 years. , or a 7.6% reduction in global gross domestic product (GDP) in 2070 alone. If global warming reaches around 3°C by the end of this century, the toll on human life will disproportionately affect the most vulnerable, resulting in productivity and job losses, food and water shortages, and health risks. This could lead to a deterioration in welfare and the arrival of global warming. A decline in living standards throughout the world.
Deloitte's Global Turning Points Report is based on research conducted by the Deloitte Institute for Economic Research. The report analyzes 15 regions across Asia-Pacific, Europe, and the Americas and finds that if world leaders come together in a systematic net-zero transition, the global economy would benefit by an additional $43 trillion over 50 years. It has become clear that this has the potential to increase global GDP. 3.8% in 2070.
“The time for debate is over. We now need to take swift, bold and far-reaching action across all fronts,” said Deloitte Global CEO Punit Renjen. “Will this require significant investment from the global business community, governments and the nonprofit sector? Yes. But doing nothing is a far more costly choice. The data supports that. In my view, we have a once-in-a-generation opportunity to reorient the global economy and create more sustainable, resilient and equitable long-term growth. The question is not why should we make this investment, but how can we not make it?”
Transforming economies towards a low-carbon future will require broad coordination and global cooperation across industries and regions. Governments need to work closely with the financial services and technology sectors to lead sustainable progress through global policy-making, increased investment in clean energy systems, and a new mix of green technologies across industries. A general shift from an economy dependent on fossil fuels to an economy dominated by renewable energy will spur new sources of growth and job creation, according to research by the Deloitte Institute for Economic Research. Global cooperation and regulation are essential to setting the stage for successful transformation.
“It is important that the global economy evolves to meet the challenges of climate change,” said Dr. Pradeep Phillip of the Deloitte Institute for Economic Research. “Our analysis shows that a low-carbon future is not only a social imperative, but an economic imperative. We already have the business models and policy approaches, but we need governments, businesses and communities around the world to work together on a path to a net-zero future.”
“To find new and lasting solutions to these societal challenges, we need to model new forms of collaboration and pursue holistic, multi-party approaches. We build a strong foundation for economic return and growth for decision-makers, influencers and participants to work towards individual and shared prosperity,” said Bernhard Lorenz, founding chairman of DCSP and Deloitte Global Consulting Sustainability &. the professor said. Climate Strategy Leader.
This report details four key steps towards global decarbonisation.
The public and private sectors come together to work together to build effective foundational frameworks and policies to drive actionable change. Business and government leaders are making significant investments, driving structural changes in the global economy that prioritize low-emission industries and accelerate the transition to net zero. Regions around the world will approach their own “tipping points” when the benefits of net-zero transition outweigh the costs and ultimately begin to drive net-positive growth and value in the region. Through this tipping point, societies will realize a greener future where interconnected, low-carbon systems support a clean economy that grows faster and faster than carbon-intensive alternatives.
Our analysis shows that no two paths to net zero are the same. Each region will follow a unique path based on a variety of factors, including how its governing bodies and societies are structured, its exposure to climate change and overall risk profile, and its market strengths and capabilities. Similarly, each region will experience its own tipping point. For example, while Asia-Pacific is expected to see the benefits of a low-carbon transition as early as the 2020s, Europe will not see investment returns until the 2050s. This transition is expected to proceed at different speeds, but if swift action is taken, all regions are expected to reach the tipping point by his year 2070 and continue to benefit long after.
Learn more about the Deloitte Center for Sustainable Progress
DCSP builds on Deloitte's desire to address climate and sustainability challenges more broadly by serving as a convener of experts, industry influencers and thought leaders from around the world. DCSP provides his leadership with practical, data-driven, trusted research and thought that meets the urgency of this moment, when insight and collaboration for social change are more important than ever.
Note:
To learn more about Deloitte's sustainability and climate change initiatives and services, please visit our website.
