The Energy Transition Commission (ETC) has estimated that the required additional investment for achieving net zero carbon economy by 2050– while significant in absolute dollar terms – will amount to no more than 1-1.5 per cent of global GDP ($1-2 trillion annually), and is easily affordable given current global savings and investments, particularly in the prevailing macroeconomic context of sustained low interest rates.
“The scale of required investment is small compared with the massive public spending and fiscal deficits now being dedicated to stimulating the economy after the Covid-19 crisis, providing an opportunity – if well designed – to accelerate the energy transition,” ETC said in a report released on Wednesday. ETC is a coalition of global leaders from across the energy landscape: energy producers, energy-intensive industries, equipment providers, finance players and environmental NGOs.
