New Climate Economy is delighted to announce the publication of the 2018 Report of the Global Commission on the Economy and Climate, Unlocking the Inclusive Growth Story of the 21st Century: Accelerating Climate Action in Urgent Times. The Report’s major finding is that we are significantly underestimating the benefits of cleaner, climate-smart growth: bold climate action could deliver at least US$26 trillion in economic benefits through to 2030, compared with business-as-usual. The Report will be launched today at UN headquarters in New York with a hand-over to the UN Secretary-General.
It finds evidence of tremendous technological and market progress driving the shift to a new climate economy with real benefits in terms of new jobs, economic savings, competitiveness and market opportunities, and improved wellbeing for people worldwide. Momentum is building in cities, governments, businesses, investors and others around the world because those taking bold climate action are already seeing tangible benefits but much more is possible.
What are the major opportunities to accelerate action in five key economic sectors: energy, cities, food and land use, water, and industry? Where are we seeing exciting new approaches already underway, changing lives and livelihoods for the better? What are the urgent priorities that must be taken up in the next 2-3 years if we are to seize fully the new growth story of the 21st century? And how can we implement them successfully, given the challenges we see today? These are the questions this Report seeks to answer.
Annual global industrial sector carbon emissions must drop by 40% between 2014 and 2060 to stabilise warming at 2oC above pre-industrial levels (see Figure 29). This may be a smaller reduction than other sectors (power-sector emissions, for instance, must drop by 99%), but it poses a significant challenge given rising demand and current technologies. Significant reductions will also be required from heavy transport as demand for services continue to rise.12
There is increasing – and welcome – momentum from businesses with an increasing number of major companies making commitments to reduce their GHG emissions, whether direct or indirectly produced by the use of their products and services. In 2018, over 6,300 companies representing some 60% of global market capitalisation disclosed their environmental impact through CDP. Over 400 major multinationals, including Coca Cola, McDonalds, Danone, HP, Pfizer, Tetrapak, and Unilever, are working with CDP, the UN Global Compact, WRI and World Wildlife Fund (WWF), committing to set SBTs for GHG emissions reductions aligned with 2oC climate stabilisation pathways. Over 1,400 companies have adopted or plan to soon adopt internal carbon pricing. And the recently published TCFD recommendations can help investors to stress test their portfolios against climate risk. Drastically accelerating implementation efforts by businesses, in combination with supporting policy and institutional reforms, will be a critical element of the new growth agenda.