The Deloitte Center for Sustainable Development recently released the "Global Turning Point Report" stating that if not controlled, climate change will cause a loss of US$178 trillion to the global economy in the next 50 years, and the global gross domestic product (GDP) will decrease in 2070 alone. 7.6%.
If global warming reaches 3 degrees Celsius by the end of the 21st century, human life will be affected, disproportionately affecting vulnerable groups, leading to reduced productivity and jobs, food and water shortages, poor health, and living standards, the report said. decline.
The Global Turning Point Report is based on the findings of Deloitte Economics, which analyzes the situation in 15 regions including Asia Pacific, Europe and the Americas and finds that if the world unites in a systematic net zero transition, by 2070, global GDP will grow by 3.8%.
Deloitte Middle East CEO said, “The numbers speak for themselves, and companies should rethink their practices to build a more sustainable future. A small step in the right direction will pay off in the future. But if companies don’t Sustainability is a priority, and without understanding its impact on the environment, valuable talent, revenue and market share can be lost.”
An economy transitioning to a low-carbon future requires extensive coordination and cooperation across industries and regions. The report states that governments need to work closely with the financial services and technology sectors to lead sustainable development through global policy development, increased investment in clean energy systems, and the adoption of new combinations of green technologies across industries.
According to findings from Deloitte Economics, a shift from an economy reliant on fossil fuels to one driven primarily by renewable energy will spur new growth and create new jobs. Global cooperation and regulation can lay the foundation for a successful transformation.
The Global Turning Point Report details 4 key stages of global decarbonization: first, public and private sectors come together to build effective and foundational frameworks and policies to drive change; second, business and government leaders make significant investments , triggering structural changes in the global economy, prioritizing low-carbon emitting industries, and accelerating the transition to net-zero emissions; third, the world is approaching their respective "tipping points", when the benefits of net-zero transition begin to outweigh the costs, which will eventually Drive the positive growth of regional value; Fourth, after this turning point, society will achieve a greener future, that is, an interconnected, low-carbon system supports a clean economy that grows faster than a carbon-intensive economy.
Analysis shows that no two paths to "net zero" are the same. Each region will go through its own journey based on a range of factors, such as the way institutions and societies are structured, the degree of exposure to climate change and the overall risk profile, as well as market strengths and capabilities. Likewise, each region has its own unique turning point.
Asia-Pacific is expected to see the benefits of a low-carbon transition as early as the 2020s, while Europe will not see a return on investment until the 2050s. This transition will take place at different speeds. But the report says that if action is taken quickly, all regions of the world will reach a turning point in 2070 and continue to benefit long after that.
