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The US Economy could be hit by $14.5 Trillion in climate change costs if they don’t act now.

The US Economy could be hit by $14.5 Trillion in climate change costs if they don’t act now.

Inaction on Climate Change Could Cost the US Economy $14.5 Trillion by 2070

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A New report released today from the Deloitte Economics Institute shows that the United States economy could gain $3 trillion if it rapidly decarbonizesOver the next 50 years. The report estimates that this once-in a generation transformation could add nearly one million jobs to the US’ economy by 2070.

“The Deloitte Economics Institute Turning Point report makes the case for another industrial revolution in the US—one built on low-emissions growth—to avoid significant losses from the climate crisis and to create a more dynamic, prosperous economy for the US,” said Alicia Rose, Deputy CEO for Deloitte US, in a press release. “The analysis shows that the battle to slow Climate change is not only an aspirational goal, but an economic imperative for the US.”

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. People would find it more difficult to live and work because of heat stress, rising sea level, damaged infrastructure, and lower agricultural productivity. Deloitte’s analysis shows that insufficient action on climate change could cost the US economy $14.5 trillion in the next 50 years. A loss of this scale is equivalent to nearly 4% of GDP or $1.5 trillion in 2070 alone. Climate change could lead to nearly 900,000. Jobs could be lost each year over the next 50-year period.

The US must invest more in clean energy systems and new technologies to transition to a low emission economy. The rapid expansion of manufacturing and the private sector 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. And, according to Deloitte’s research, the regions hardest hit by unchecked climate change would have the most to gain.

There are four key steps to the US 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 distribution, which allows for parallel and synchronized advancements in the mobility, industrial, and food systems.
  2. The acceleration to net-zero will create major economic shifts in the policy, energy system, investment priorities, and consumer behavior between 2026 and 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 US economy will be radically transformed by 2050 and beyond. It will also 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 US has all the technology, capital, infrastructure and skilled labor required to make this transition as easy and affordable as possible. The study shows that the US could see extraordinary growth if governments and industries invest heavily in low-emission growth.

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