McKinsey’s Global Institiute released another study recently discussing what it would cost to reduce carbon emissions. As it turns out, not that much. I mean, yes, it does cost something, but according to their calculations, just 0.6-1.4% of GDP to get to managable levels, which is less than the 3.3% we pay as a society for insurance. And as they have noted before, many of the reductions can actually increase GDP! So in other words, we have no excuse for stronger leadership and more action. Money quote:
The microeconomic changes needed to increase carbon productivity at the levels required will not occur without the active leadership and collaboration of governments and businesses globally. We need new policies, regulatory frameworks, and institutions focused on four areas: creating market-based incentives to innovate and raise carbon productivity; addressing market failures that prevent abatement opportunities from being captured profitably; resolving issues of allocation and fairness, in particular between the developed and developing worlds and between industry sectors; and accelerating progress to avoid missing critical emissions targets.
Thanks to Climate Progress for pointing this out.
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