Climate inaction to cost the global economy $178 trillion over 50 years

On the flip side, however, if climate change remains unchecked it could cost the global economy $178 trillion over five decades – which is equivalent to a 7.6 percent cut to global gross domestic product (GDP) in the year 2070 alone according to the WEF, Davos.

Additionally, if global warming reaches 3°C toward the century’s end, the toll on human lives could also adversely impact productivity and employment, food and water scarcity, worsening health and well-being, and ushering in an overall lower standard of living globally.

The CEO of Deloitte Middle East, Mutasem Dajani, said: “The numbers speak for themselves and businesses should be reimagining their practices to help build a more sustainable future for all.

While it could be said that in principle taking small steps in the right direction will pay dividends in the future, businesses must prioritise sustainability and understand the impact they are having on the environment, valuable talent, revenue, and market share.

Preparing the economy for a low-carbon future must look at coordination and global collaboration beyond geographical boundaries.

Governments must work on sustainable progress through global policymaking, greater investment in clean energy systems, and a new mix of green technologies across industries.

“It’s important that the global economy evolves to meet the challenges of climate change,” said Dr. Pradeep Philip, Deloitte Economics Institute.

The public and private sectors unite, collaborating to build effective and foundational frameworks and policies to drive actionable change.

Interconnected, low-carbon systems underpin a clean economy that grows at an increasingly faster rate than its carbon-intensive alternative.

The economy must pivot from an economy reliant on fossil fuels to an economy primarily powered by renewable energy to encourage new sources of growth and job creation.

Global cooperation and regulation must now look at public-private partnerships that have green goals embedded in their blueprint for the future