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- August 18th, 2015
Up to $44 trillion could be going up in smoke if the world does not act on climate change, according to the latest piece of research from U.S. banking giant Citigroup.
The report – Energy Darwinism II: Why a Low Carbon Future Doesn’t Have to Cost the Earth — has forecast that spending on energy will hit around $200 trillion in the next 25 years.
The study then examines two scenarios: one that Citi describe as an “‘inaction’ on climate change scenario”, and another that looks at what could happen if a low carbon, “different energy mix” is pursued.
“What we’re trying to do is to take an objective view at the economics of this situation and actually look at what the costs of not acting are, if the scientists are right,” Jason Channell, Global Head of Alternative Energy and Cleantech Research at Citi, told CNBC Tuesday.
“And those are rather alarming numbers in themselves,” he added. “I mean, the central case we have in the report is that the costs in terms of lost (gross domestic product) GDP from not acting on climate change can be $44 trillion dollars by the time we get to 2060.”
“So it’s not a sort of a zero sum game, there is a cost to not doing this, and although there is a cost to acting, what we’re trying to do is to actually weigh up the different costs here.”