A new report* released by the Global Commission on the Economy and the Climate has identified ten key economic opportunities that it says could close up to 96 % of the gap between 'business-as-usual' emissions and the level needed to limit dangerous climate change. The report calls for stronger co-operation between governments, businesses, investors, cities and communities to drive economic growth in the emerging low-carbon economy.
"This report shows that success is possible: we can achieve economic growth and close the dangerous emissions gap," said former president of Mexico Felipe Calderón, chair of the Commission. "Today's report shows us that a goal we once thought of as distant is within our reach. We can achieve global prosperity and secure a safe climate together. The low carbon economy is already emerging. But governments, cities, businesses and investors need to work much more closely together and take advantage of recent developments if the opportunities are to be seized. We cannot let these opportunities slip through our fingers."
The new report shows how recent trends in the global economy - such as the dramatically falling cost of clean energy, the continuing volatility of oil prices, and the worldwide growth of carbon pricing - are building momentum for low-carbon development.
"More and more countries are committing to integrating climate action into national economic plans, from the recent G7 statement on the need to decarbonise the economy by the end of the century, to the development of low-carbon and climate resilient growth strategies in a number of developing and emerging economies", said Lord Nicholas Stern, leading economist and Co-chair of the Commission. "Strong economic growth that is also low-carbon is going to be the new normal."
The Commission's 10 recommendations include:
Scaling up partnerships between cities to drive low-carbon urban development. Investment in public transport, building efficiency, and better waste management, could save around US$17 trillion globally by 2050.
Enhancing partnerships such as REDD+, the 20x20 Initiative in Latin America, and the Africa Climate-Smart Agriculture Alliance to bring together forest countries, developed economies and the private sector to halt deforestation by 2030 and restore degraded farmland. This would enhance agricultural productivity and resilience, strengthen food security, and improve livelihoods for agrarian and forest communities.
Governments, development banks and the private sector should collaborate to reduce the cost of capital for clean energy, with the goal of investing US$1 trillion in developed and developing countries by 2030.
The G20 should raise energy efficiency standards in the world's leading economies for goods such as appliances, lighting, and vehicles. Investment in energy efficiency could boost cumulative economic output globally by US$18 trillion by 2035.
Action to reduce emissions from aviation and shipping under international treaties and from hydrofluorocarbons (HFCs) under the Montreal Protocol could reduce emissions by as much as 2.6 Gt in 2030. In shipping alone, higher efficiency standards are expected to save an average of US$200 billion in annual fuel costs by 2030.
The Commission calculates that its recommendations could achieve up to 96 % of the emissions reductions in 2030 that are needed to hold the rise in global temperature to under 2°C, the level that governments have undertaken not to exceed.
The report finds that businesses are already driving a growing US$5.5 trillion global market for low-carbon goods and services. It calls for new business partnerships to open new markets, share costs, and reduce concerns about the international competitiveness impacts of climate policy.
*'Seizing the Global Opportunity' is a follow-up to 'Better Growth, Better Climate: The New Climate Economy Report' which was released in September 2014. The report and executive summary are available at: http://2015.newclimateeconomy.report/
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