The U.S. economy could grow $3 TrillionIf it accelerates towards low-emission growth, it will be for the next 50 years
NEW YORK, Jan. 25, 2022/PRNewswire/ — Today’s Deloitte Economics Institute report shows that The United StatesThe economy could grow $3 TrillionIt will be able to decarbonize rapidly in the next 50 years. According to the report, this once-in-a generation transformation could add nearly 1,000,000 more jobs to the US economy in 2070.The Turning point: A new economic climate The United States.”
“The Deloitte Economics Institute Turning Point report makes the case for another industrial revolution in the U.S.—one built on low-emissions growth—to avoid significant losses from the climate crisis and to create a more dynamic, prosperous economy for the U.S.,” said Alicia RoseDeputy CEO at Deloitte US. “The analysis shows that slowing climate change is not an aspirational goal but an economic imperative for the U.S.
If global warming reaches around 3°C toward the century’s end, Deloitte’s analysis indicates that economic damages would grow and compound, affecting every industry and region in the country. This would make it more difficult for people to live and work because of heat stress, rising sea level, damaged infrastructure, and reduced agricultural productivity. According to Deloitte, insufficient climate change action could lead to economic collapse in the United States. $14.5 TrillionIn the next 50 years. This loss would be equivalent to a loss of nearly 4% GDP $1.5 TrillionIn 2070 alone. Climate change could lead to nearly 900,000. Jobs could be lost each year for the next 50 years.
“If the U.S. chooses an ambitious, holistic path to decarbonization, it could see net economic benefits by 2048,” stated the statement. Scott CorwinManaging Director of Deloitte US’s ESG Strategic Growth Offering. “Economically, every region of the country would be benefited.”
The U.S. must invest more in clean energy systems and new technologies to transition to a low emission economy. Rapid expansion of manufacturing would create new jobs. Other jobs—and entirely new kinds of work—would be created by expansion in clean energy sectors such as renewable energy and green hydrogen. According to Deloitte’s research the regions most affected by climate change unchecked would have the greatest benefits.
“The analysis demonstrates that we have a narrow window of time—the next decade—to make the bold decisions needed to change our climate trajectory and reach a turning point,” added Rose. “Governments, businesses and communities will reinforce our early progress, which could lead to extraordinary economic possibilities for the U.S.,” Rose added.
The report outlines a scenario that includes four key stages for the U.S. Climate Transition:
1) The public and private sectors must make bold decisions to quickly transition to renewable energy between now and 2025. This includes transforming the electricity value chains, such as storage, transmission, and transmission, which allows for parallel and synchronized advancements in the mobility, industrial, and food systems.
2) The acceleration to net zero creates major economic shifts policy-wise, in energy systems and consumer behavior, from 2026 to 2040.
3) From 2041 to 2050—which is the turning point where the benefits of transition outweigh the costs—decarbonization of high-emission industries is almost complete. As sustainable technologies become more affordable, the net economic benefits are greater.
4) The U.S. economy will be radically transformed in 2050 and beyond and will be more competitive in core industries. The economy achieves net-zero emissions, operating in a world that keeps global warming to below 2°C.
The U.S. has the capital, infrastructure, and skilled labor to make this transition easy and cost-effective. The U.S. economy can experience remarkable gains in just a few generations if governments and industries invest heavily in low-emission growth.
This study is part a series of Deloitte studies that examines the economic impact on climate change in regions, including Europe Asia Pacific. Visit Deloitte’s Climate and sustainabilityPractice to learn more.
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