What we need to do
The report states that governments and businesses need to improve resource efficiency, invest in good-quality infrastructure and stimulate innovations in technology and business in order to achieve the growth that’s possible.
Phasing out the $600 billion currently spent on subsidies for fossil fuels (compared with $100 billion on renewable energy) would help to improve energy efficiency and make money available for helping to reduce poverty.
Tripling research and development in low-carbon technologies to at least 0.1% of GDP can drive a new wave of innovation for growth.
‘Major companies, smart investors and a new generation of entrepreneurs are already demonstrating how markets can drive low-carbon growth. But inconsistent policy in many countries is now creating uncertainty, hurting investment and job creation. Businesses and investors need clearer market signals.’
Jeremy Oppenheim, Global Programme Director of the New Climate Economy project
90% emissions cuts by 2030
Better Growth, Better Climate sets out a detailed 10-point Global Action Plan of practical recommendations that can achieve greater prosperity and a safer climate at the same time.
These measures will all lead to net benefits to the economy, even before their climate benefits are considered.
‘The decisions we make now will determine the future of our economy and our climate. If we choose low-carbon investment we can generate strong, high-quality growth – not just in the future, but now. But if we continue down the high-carbon route, climate change will bring severe risks to long-term prosperity.’
Lord Nicholas Stern, Co-Chair of the Global Commission
The Commission calculates that if fully implemented, its recommendations could potentially achieve up to 90% of the emissions reductions needed by 2030 to avoid dangerous climate change. This would require decisive and early action by economic decision-makers.
Over the next six months the Commission will discuss the report with economic decision-makers across the world. It aims to stimulate stronger action by governments and businesses to drive growth and emissions reductions together.
The Global Commission on the Economy and Climate comprises 24 leaders from government, business, finance and economics in 19 countries. A year-long study has been conducted by leading research institutes from Brazil, China, Ethiopia, India, South Korea, the United Kingdom and United States, advised by a panel of world-leading economists chaired by Lord Nicholas Stern. You can read the full report on the New Climate Economy website.