Growth for a Better Climate

In the next 15 years, the global economy will grow by more than half, according to the executive summary of the report, and about $90 trillion will be invested in the world’s cities, agriculture, and energy systems. The report notes that this substantial dollar amount provides an unprecedented opportunity to drive investment in low-carbon growth and reap benefits including jobs, health, business productivity, and quality of life.

Focusing on these three “key systems of the economy”—cities, land use, and energy—the report demonstrates how all countries, regardless of size and income, have the opportunity to grow their economies by being green.

Cities generate around 80 percent of global economic output, and around 70 percent of global energy use and energy-related greenhouse gas emissions. Building more compact, connected cities based on mass public transport can save over $3 trillion in investments over the next 15 years. This strategy will improve economic performance and quality of life with lower emissions.

The population is projected to grow to eight billion by 2030, and land use productivity will determine how we feed this growing number of people. According to the report, restoring just 12 percent of the world’s degraded lands can feed another 200 million people and raise farmers’ incomes by $40 billion a year—and also cut emissions from deforestation.

As the price of solar and wind power falls dramatically, over half of new electricity generation over the next 15 years is likely to be from renewable energy, reducing dependence on highly polluting coal. In addition, the report says, “Greater investment in energy efficiency—in businesses, buildings, and transport—has huge potential to cut and manage demand. In developing countries, decentralized renewables can help provide electricity for the more than one billion people without access.”

The executive summary of the report lays out a clear “10-point Global Action Plan” of key recommendations. These include a “strong, lasting and equitable international climate agreement”—which could prove to be the most difficult of actions! The plan also proposes phasing out fossil fuel subsidies (currently valued at $600 billion versus $100 billion subsidies for renewable energy), introducing a carbon tax, investing in low-carbon infrastructure, tripling investment in low-carbon technologies, encouraging smarter urban growth (connected and compact), stopping deforestation, restoring degraded land, and reducing or eliminating coal power.

It may sound difficult, but it’s not impossible, says Jeremy Oppenheim, program director of the project. “Major companies, smart investors, and a new generation of entrepreneurs are already demonstrating how markets can drive low-carbon growth. But inconsistent policy in many countries is now creating uncertainty, hurting investment and job creation. Businesses and investors need clearer market signals.”

The Commission is made up of 24 leaders from government, business, finance, and economics in 19 countries. Its report aims to reset widely held assumptions about the economics of fighting climate change.

Commissioner Chair Felipe Calderon, former president of Mexico, says: “The message to leaders is clear. We don’t have to choose between economic growth and a safe climate. We can have both. We can choose better growth and a better climate.”

Implementing the action plan may not be easy, but for the health of the economy, our planet, and all life on Earth, do we really have a choice?

Image: Marc Rochkind/Wikipedia