· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Economist or enjoy below:
🗞️ Driving the news: Transitioning to a zero-emissions economy will cost far less than commonly believed, according to recent analyses
• Although estimates often cite trillions annually, flaws in assumptions—such as overstating energy demand and underestimating technology cost reductions—inflate the figures
• In reality, the incremental cost of decarbonization may be less than 1% of global GDP
🔭 The context: Historical investment trends reveal a shift toward clean energy, which now attracts nearly twice the funding of fossil fuels, driven by falling costs of technologies like solar and batteries
• Models often overlook this momentum, as well as the unavoidable costs of maintaining and expanding energy infrastructure, whether green or fossil-based
• Incremental costs of achieving 2°C warming are far lower than previously estimated when these factors are accounted for
🌍 Why it matters for the planet: Misinformation about the cost of climate action delays progress and discourages investment
• Realistic estimates demonstrate that decarbonization is not only achievable but can also mitigate the catastrophic damages associated with higher warming scenarios, such as 3°C or more
⏭️ What's next: Accelerating the adoption of cost-effective clean technologies, addressing financing challenges in the Global South, and streamlining policy are essential for meeting Paris Agreement goals
• Collaboration between governments and private investors can lower capital costs and enhance equity in the energy transition
💬 One quote: “Reducing overall warming by a few tenths of a degree might in fact pay for itself, insofar as the world would suffer less damage in total from global warming”
📈 One stat: Clean energy investment in 2024 reached $3 trillion, with solar power accounting for $500 billion—more than any other energy source combined
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