The economy is the factor that affects the climate, which was shown in the World Economic Forum

The World Economic Forum (WEF), the international non-governmental and lobbying organization that has been organizing since 1971, is organized every year in Davos, a Swiss city in the heart of the Alps, taking place these days.

The World Economic Forum brings together key world leaders to advance pluralism and multi-stakeholder solutions to global challenges. Multilateralism means not only agreeing on a set of universal principles and rules, but also drawing on different knowledge, strengths, and viewpoints from different parties to quickly transform new knowledge into collective action.

great interest in environmental issues, Especially in light of the latest report of the Intergovernmental Panel on Climate Change Which issues a warning that time is no longer on our side to take action on climate change.

Also at the heart of the conversations Global Turning Point Report recently published by Deloitte Economics.

The report examines two possibilities: global action and global inaction. Economic modeling reveals the growth and opportunities that could emerge over the next 50 years if we take rapid, substantive global climate action, compared to the basic economic scenario of inadequate action that takes into account increased damage and lost opportunity.

According to the report, we can still help reverse the unprecedented rise in temperatures. This is achieved through a change in the behavior of society and thanks to a series of actions by governments, companies and civil society. The world can still achieve zero emissions by 2050 We have a chance to achieve the Paris Agreement goal of limiting warming to 1.5°C as soon as possible.

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Global climate action against inaction

What would happen if we continued to follow the usual path?

A recent Deloitte survey of 23 countries and more than 23,000 participants found that more than half of them had been personally exposed to a climate-related extreme weather event, from wildfires to extreme heat, and from floods to drought. Uncontrolled climate change could result in global economic losses of $178 trillion (in present value terms) between now and 2070. We often know that. Those who contribute least to global carbon emissions suffer the most from climate impacts.

If we let greenhouse gas emissions rise globally and the planet keeps warming, we will see a future where average temperatures will rise by about 3°C ​​by 2100. This will not only lead to serious environmental and human damage, but will also be detrimental. in the global economy.

But what would happen if we took coordinated and coordinated decarbonization measures today?

Analysis by Deloitte Economics shows that the race to net zero will not only benefit the environment, but long-term economic growth as well. We already have many technologies, business models, and policy approaches to rapidly achieve decarbonization. This economic transformation can lead to a greater and more sustainable economic boomthanks to the avoided costs of climate damage, new jobs, industries and technological innovations, and the opportunities to create a zero-emissions global economy.

Regional Economic Benefits of Decarbonization

Addressing climate change quickly is a global economic imperative that benefits all. The appearance and evolution of this transition will vary by region, but nearly all countries and sectors will benefit from rapid decarbonization and climate action.

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  • Asia Pacific could turn its $96 trillion loss from base scenario into Profit 47 trillion dollars-Reduce heating to 1.5°C. By 2070, the region’s economy could grow by $9 trillion annually compared to a world with 3°C warmer. This is roughly equivalent to adding the economies of Japan, Australia and India to the region by 2070.
  • Meanwhile, Europe can take advantage of a relatively low-cost transition to reap the benefits of becoming the world’s first carbon-neutral region. Rapid decarbonization could increase regional GDP by 1.8% in 2070 (equivalent to €730 billion) compared to the reference scenario of 3°C, a benefit that could increase in the following years thanks to Europe’s thirty-year low-emission industrial revolution. While the benefits will not be immediately as significant as the Asia Pacific region, at an annual cost of 0.7% of European GDP through 2050, the benefits of proactive continental decarbonization will outweigh the costs.
  • Compared to the 3°C heating path, Decarbonization of North and South America in 2070 could increase regional GDP by 1.8% or $1 trillion. The United States could raise $885 billion from these benefits, a return that would exceed the current combined annual revenue of Amazon, Alphabet and Microsoft. Given this advantage, it is in the economic interest of the United States to mobilize its influence to encourage global decarbonization.

The dimensions of the opportunity are clear. In fact, the regions most vulnerable to economic damage from uncontrolled climate change, such as Asia and the Pacific, are also those that benefit most from adopting a low-carbon future. However, the benefits of decarbonization for each region can only be fully realized through coordinated and comprehensive climate action.

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Reorient the global economy in the race to Net Zero

Limiting warming to as close to 1.5°C as possible presents a rare once-in-a-generation opportunity to reorient the global economy toward more sustainable, resilient and equitable growth. It will be an industrial revolution of unprecedented speed and scale, which will require setting aside existing frameworks in favor of a systems-based approach: extraordinary levels of collaboration and the simultaneous transformation of multiple, interconnected systems. Concrete and collective measures to decarbonize the global economy can give a huge boost to the economies of many parts of the worldAccelerate growth and create new job opportunities.

We can endlessly model, analyze and recommend courses of climate action, but we all have a role to play at work and in accelerating change at all levels to combat the climate crisis and bring about real and lasting change for our collective future.

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