{ "title": "Benefits of Accelerating the Climate Transition Outweigh the Costs", "publication": "IMF Blog, December 5, 2023", "sourceUrl": "https://www.imf.org/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs", "canonical": "https://www.imf.org/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs", "overlayPath": "/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs/index.md", "summary": "Climate Change Indicators Dashboard shows that avoiding physical damage from climate change can have sizable benefits.", "sections": [ { "heading": "Key findings from NGFS scenarios", "content": "- Making an orderly transition to net zero by 2050 could result in global gross domestic product being 7 percent higher than under current policies.\n- Temperatures are, on average, up 1.2 degrees Celsius from pre-industrial levels.\n- This year will be the warmest on record, according to the World Meteorological Organization.\n- Droughts and heatwaves are the largest source of risk across regions in NGFS models:\n - Europe and Asia are most exposed to heatwaves.\n - Africa, North America, and the Middle East are most vulnerable to droughts." }, { "heading": "Economic tradeoffs and mitigation", "content": "- Transitioning to a low-carbon economy will have negative impacts on demand from higher carbon prices and energy costs.\n- These negative impacts can be partially offset by recycling carbon revenues into government investment and lower employment taxes.\n- Most importantly, lowering emissions will reduce the physical impacts of climate change, which lowers macroeconomic costs." }, { "heading": "Investment and policy implications", "content": "- Transitioning to a net-zero economy will require substantial investment in green electricity and energy storage.\n- How economies approach making this investment poses policy tradeoffs, as detailed in the October Fiscal Monitor." }, { "heading": "Institutional context and tools", "content": "- The Network for Greening the Financial System (NGFS) is a group of 127 central banks and financial supervisors working to manage climate risks and boost green investment; it was established in 2017.\n- The climate scenarios are aligned with international best practices and supplement scenarios from other international organizations such as the Intergovernmental Panel on Climate Change and the International Energy Agency.\n- The IMF is one of 20 international organizations that are NGFS observers, and actively contributes to the scenario design and analysis.\n- A selection and visualization of key indicators from the NGFS climate scenarios is curated by the IMF on the Climate Change Indicators Dashboard.\n\nSource: Benefits of Accelerating the Climate Transition Outweigh the Costs (IMF, December 5, 2023).\n\n---\n\n\n References\n\n- latest climate scenarios\n- COP28\n- Fiscal Monitor\n- Climate Change Indicators Dashboard\n\nSource: https://www.imf.org/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs" } ], "bullets": [ "[Markdown version](/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs/index.md)", "[Structured JSON version](/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs/index.json)", "[Bundle manifest](/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs/bundle-manifest.json)", "Authors: Jens Mehrhoff", "Published: December 5, 2023", "Making an orderly transition to net zero by 2050 could result in global gross domestic product being 7 percent higher than under current policies.", "Temperatures are, on average, up 1.2 degrees Celsius from pre-industrial levels.", "This year will be the warmest on record, according to the World Meteorological Organization.", "Droughts and heatwaves are the largest source of risk across regions in NGFS models:", "Transitioning to a low-carbon economy will have negative impacts on demand from higher carbon prices and energy costs.", "These negative impacts can be partially offset by recycling carbon revenues into government investment and lower employment taxes.", "Most importantly, lowering emissions will reduce the physical impacts of climate change, which lowers macroeconomic costs.", "Transitioning to a net-zero economy will require substantial investment in green electricity and energy storage.", "How economies approach making this investment poses policy tradeoffs, as detailed in the October Fiscal Monitor.", "The Network for Greening the Financial System (NGFS) is a group of 127 central banks and financial supervisors working to manage climate risks and boost green investment; it was established in 2017.", "The climate scenarios are aligned with international best practices and supplement scenarios from other international organizations such as the Intergovernmental Panel on Climate Change and the International Energy Agency.", "The IMF is one of 20 international organizations that are NGFS observers, and actively contributes to the scenario design and analysis.", "A selection and visualization of key indicators from the NGFS climate scenarios is curated by the IMF on the Climate Change Indicators Dashboard.", "[latest climate scenarios](https://climatedata.imf.org/pages/ngfs)", "[COP28](https://www.imf.org/en/Topics/climate-change/COP28)", "[Fiscal Monitor](https://www.imf.org/en/Blogs/Articles/2023/10/02/countries-must-contain-global-warming-while-keeping-debt-in-check)", "[Climate Change Indicators Dashboard](https://climatedata.imf.org/)" ], "alternates": { "markdown": "/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs/index.md", "json": "/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs/index.json", "bundleManifest": "/en/blogs/articles/2023/12/05/benefits-of-accelerating-the-climate-transition-outweigh-the-costs/bundle-manifest.json" }, "generatedAtUtc": "2026-08-26T02:13:24.735Z" }