The transition to a net zero emissions environment by 2050 will create new industries worth $10.3 trillion, according to a joint report by Arup and Oxford Economics.
The economic benefit "includes the direct contribution to GDP (gross domestic product) of electric vehicles manufacturing, renewable power generation, clean energy equipment manufacturing, renewable fuels and green finance; plus the activity supported across global supply chains," according to the report.
"As each year passes, the climate emergency facing the planet becomes ever more alarming," but creates the opportunity for the rapid emergence of new technologies and expertise that are focused on tackling it, the report states.
A thriving global green economy "implies decoupling economic activity from negative environmental impacts."
The world economy will move toward a more sustainable path if the severely detrimental effects of global warming on the environment and on economic prosperity are avoided, the report added.
Although mitigating climate change is expensive, "transition to a sustainable environment by 2050 also creates vast opportunities in the global economy," the report said.
The report identified three pillars of opportunity that will emerge from the transition to a zero-carbon economy.
"Firstly, the disruption caused by a switch to clean energy will create competitive opportunities across all industries. Secondly, we identify five major new green markets for carbon-neutral goods and services that will emerge. Thirdly, placing the planet on this sustainable pathway leads to substantial productivity benefits relative to a world in which climate change has been left unchecked, or poorly tackled."
