Estimating the impact of green investment in terms of greenhouse gases emissions avoided is important in the effort to curb climate change. In accordance with the 2016 UN COP 21 Paris Agreement ratified by 139 countries to keep global warming to below 2oC we must substantially reduce absolute emissions of greenhouse gases (GHG) into the atmosphere.
To do so, a globally concerted effort to transition to low carbon economies is required to reduce emissions by approximately 25 billion tonnes of carbon dioxide equivalents (CO2e) per annum (25GtCO2e per annum) versus Business as Usual (BAU) by 2030 and by 60GtCO2e versus BAU by 2050.
Estimates vary for the capital cost of such a transition but include a cumulative investment of $53tn by 2035 in the energy sector alone, and $93tn by 2030 across the global economy.
United Nations Framework Convention on Climate Change, count as of 5th October 2016.
“World Energy Investment Outlook” International Energy Agency (2014).
“Better Growth, Better Climate” New Climate Economy (2014).