Green energy is cheaper than fossils

Green energy, city group, report, Research, global warming, renewables, fossil, green power, CO2, emissions, reduction, global heat, Paris, COP2

If we continue on the InAction scenario, we will pay 1.8 trillion dollars more

The Paris climate summit has entered its next round. Now leaders from all over the world are trying to agree to limit the global warming.

Enough reason for us to examine what climate change actions actually do cost in hard money.

And guess what: it is even cheaper than fossils!

Money is an important factor in the debate. Recently, the Citi Bank  wrote a report in which the kinds of scenarios on climate change have been calculated, based on scientific research, for example, their own estimates and figures from the OECD.

Green energy, city group, report, Research, global warming, renewables, fossil, green power, CO2, emissions, reduction, global heat, Paris, COP2, GPD

GLobal GDP is expected to tremble with strong growth from emerging markets

Renewable energy is cheaper

That research numbered of remarkable achievements. One of them: In time, a radical green energy mix will be (slightly) cheaper than the current mix, according to the calculations of the bank. Citi suggested two scenarios:

  1. Action
    In the action-scenario the bank assumes that in 2040, the share of fossils has been reduced to 22 percent
  2. InAction
    The InAction scenario assumes that the global energy mix will remain as it is now; with about 64 percent ‘dirty’ (gas and coal) energy

192 trillion

While it seems obvious to suspect that a shift to green power will be more expensive, this does not seem to be the case. According to Citi, the action-scenario will cost some 190.2 trillion (US $ 190.200.000.000.000) in energy costs to 2040.

If we continue on the the non-action scenario, we will pay 1.8 trillion dollars more: 192 billion to 2040. According to the accountants of the bank, renewables will become much cheaper in the next years. But there is more.

Green energy, city group, report, Research, global warming, renewables, fossil, green power, CO2, emissions, reduction, global heat, Paris, COP2, GPD

In 2060, the global warming will account 6 per cent reduction in GDP

Indirect costs will be immense

The real topper will be the indirect costs. If we do nothing to reduce the CO2 emissions, most experts suspect that the earth will heat up quickly. The OECD, the club of rich nations, has calculated how much the rising temperature will harm the world economy.

According to the OECD, warming 1.5 degree will cost the world economy some 20 billion until 2060. At an average temperature increase by 2.5 degrees, the costs will rise to 44 trillion. In the tragic event that Earth will be 4.5 degrees warming, this will cost  72 billion dollars. That’s a 72 with twelve zeros!

And that’s the scenario until 2060. Estimates for the period after 2060, vary enormously. From 5 percent GPD to 11 percent.

Unfair

However, the money that has to be invested to adapt the rising temperatures are not equally distributed. Poor countries will face the largest losses, the research shows. Countries in Southeast Asia will suffer a lot under climate change. In 2060, the global warming will account 6 per cent reduction in GDP. In Africa and the Middle East, the reduction will be even harder. In countries far above the equator, the global warming might even have mildly positive effects on GDP, for example, because it is easier to grow crops.

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