Theupfrontcost
Atthecentreoftheresearchis Deloitte’sD.CLIMATE
(RegionalComputableGeneralEquilibriumClimate
IntegratedAssessment)model.Theeconomicscenariotool
attemptsto compareeconomicimplicationsof different
policypathways,whileappropriatelyaccountingforthe
costsofclimatechange.
Deloitte’s report off ers some sobering fi gures about what
a rapid decarbonisation eff ort in Europe might entail—and
what it might cost—as climate-readiness is achieved. But
the overall cost of the change may be lower than fi rst
thought. Europe can transform what took centuries of
Industrial Revolution to establish, and still grow. It estimates
a shift suffi cient to turn the tide on climate change might
result in an average reduction in GDP of just 0.7%, or almost
€175 billion every year to 2050.However, it provides an antidote to the sticker shock those
fi gures might elicit. Its key takeaway is this: Europe is poised
to reap the benefi ts of acting now to rapidly address climate
change. If it does not, the economic consequences will be
severe.“Achieving net zero emissions by 2050 is not an aspirational
goal, but an economic imperative” the report concludes.ADVERTISEMENT
The estimated increase in Europe’s
annual GDP between 2050 and
2070 should the world move full-
speed towards decarbonisation.
€400bn
Read the Europe’s Turning Point report and more at
deloitte.com/europe-turningpoint