Fighting climate change is a $150 trillion battle: Bank of America report

Asia's Tech News Daily

A recent Bank of America (BAC) Global Research Report found that, within a 30-year period, global carbon emissions could reach zero at a cost of $5 trillion per year.

The study explores the extent to which climate change can be battled and what the costs of such efforts would look like.

The consequences of climate change, the report said, will be dire and extreme. “This is the last decade to act,” the authors wrote. “Absolute water scarcity is likely for 1.8 billion people, 100 million face poverty, and 800 million are at risk from rising sea levels by 2025. Climate migration could reach 143 million from emerging markets, driven by extreme weather.”

Climate change mitigation measures, which have already been implemented in some parts of the world, will need to be drastically increased, the researchers found. In order to make significant changes, they contend, a complete global decarbonization must begin to take place within the next few decades.

“$5 trillion is [the amount of investment required to] fully decarbonize the world,” Global Strategist and Managing Director of Research at Bank of America Merrill Lynch Haim Israel said in an interview with Yahoo Finance. “It’s the annual number that will have to be the average for the next 30 years. Total investment is $150 trillion over the next 30 years, a massive number.”

Even in global terms and over a 30-year span, $150 trillion is a gargantuan amount. The latter number is almost twice the total global GDP in 2019, whereas the $5 trillion yearly figure would be equivalent to the entire U.S. tax base.

Israel, who was a co-author of the report, noted that while the $150 trillion cost is daunting, it's necessary to reduce carbon emissions to zero and mitigate damage related to climate change.

“It's the transition from emitting industries into cleaner industries [which creates this cost],” Israel said. “I think one of the lessons that we're learning today during this whole crisis that we're seeing with oil and gas prices is that the renewable energy capacity that was rolled out was not going hand in hand with storage.”

Producers which have been able to create enough wind or solar energy have encountered difficulties storing it, which has led to a more costly production process.

United Nations Climate Change Conference

The 2021 United Nations Climate Change Conference, or COP26, is set to begin on October 31 and last until November 12.

“We are expecting to see a global decarbonization plan [at COP26],” Israel said. “The last accord that was put in motion was, of course, the Paris Agreement, but it has to be updated.”

One of the specific proposals garnering interest is the unified carbon price. A carbon price is essentially a number which identifies the cost of greenhouse gas emissions to the public. Such a figure could prove useful in providing the foundations for calculations of climate change costs to use in policy measures. Israel noted that he would be watching carefully to see if world leaders could agree on a carbon price, and if so, what that price would be.

A power-generating windmill turbine is seen in front of the Arc de Triomphe on the Champs Elysees avenue in Paris ahead of the COP21 World Climate Summit, France, November 25, 2015. The upcoming conference of the 2015 United Nations Framework Convention on Climate Change (COP21) will start on November 30, 2015 at Le Bourget near the French capital. REUTERS/Christian Hartmann TPX IMAGES OF THE DAY

What would $5 trillion a year be spent on?

The $5 trillion yearly figure accounts for the replacement of carbon-emitting technologies and industries with more environmentally-friendly substitutes over time.

Green energy has gotten significantly cheaper over the past decades, the authors noted.

“Exponential cost reductions in wind, solar and batteries technologies have made renewables the cheapest form of energy in areas producing >90% of global electricity,” they said. “Market appetite is chipping in too. Labelled bonds and loans jumped to > $3 trillion this year, with $3 in every $10 of flows into global equities going into ESG, which will support climate-friendly investments, as well as funding new ones needed to further decarbonize our planet like green mining, green hydrogen or carbon capture. Finally, we see central and commercial bank balance sheets funding rising by c. $500 billion.”

Converting to green technology, while costly, would be cheaper than continuing to rely on fossil fuels in the long run, Israel said.

“It's also that today renewable energy is cheaper, which we spoke about, there's an economic incentive to renewable energy, we believe that the green economy will create 42 million jobs. That's huge. And I don't think it's going to come at the expense of oil and gas all together; we are still gonna be with fossil fuel industry for a very long time. It's just going to be to diversify our energy sources.”

This content is not available due to your privacy preferences.Update your settings here to see it.

Bitcoin: Far from a ‘green’ currency

One of the more interesting tidbits in the report, especially for crypto enthusiasts, was that a single bitcoin has a carbon footprint of 270 tons, the equivalent of 60 internal combustion engine cars. “Bitcoin today is consuming more and more electricity because bitcoin right now is so widely used and mined, it’s just generating and consuming more and more electricity,” Israel said.

The mining process for bitcoin has been a source of controversy in the past, due to the intense computing power it requires. After China banned bitcoin mining back in May, much of the activity moved to the United States. Some 17% of mining now occurs in the US. Some of the geographical features of Bitcoin mining which have changed as a result of China's ban may reduce its carbon footprint, a 2021 Cambridge University study found.

In recent years, Israel said, the discussion surrounding decarbonization has moved from debating “if” we need to decarbonize the planet to debating “how” the process should occur, what exactly the needs are, and how much money ought to be allocated. “We are hoping to get one unified global plan, eventually,” Israel said.

Ihsaan Fanusie is a writer at Yahoo Finance. Follow him on Twitter @IFanusie.

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

Yahoo Finance’s All Markets Summit

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Lionel Messi is the favourite to win 2021 Ballon d'Or as all 30 nominees are ranked

Lionel Messi could be about to win his seventh Ballon d’Or trophy. © GiveMeSport p1fliuh8jh1njh1gnl1tiskuimfcj.jpg The return of France Football’s prestigious prize is now just a matter of hours away ... Read more »

Ex-Rangers and Accies hero David Templeton opens up on retirement

David Templeton has opened up on the moment he realised it was time to retire from the game he loves. The 32-year-old realised it was time to hang up his ... Read more »

How charitable are YOUR Christmas cards? Customers urged to buy direct as some high street shops pass on as little as 10p to good causes

Charity Christmas cards offer a great way to share seasonal goodwill – but to help a good cause be wary of where you buy them.  Cards bought direct from a ... Read more »

‘Inevitable', ‘Will be a big loss' – These Sunderland fans react to latest injury setback

© Provided by Football League World luke o’nien Sunderland may have secured a much-needed victory on the road against Cambridge yesterday but it wasn’t all positive news for the Black ... Read more »

3 things we clearly learnt about Luton Town after their 2-1 defeat v Cardiff City

© Provided by Football League World Championship – Luton Town v Coventry City Luton Town fell to their third defeat in four Championship clashes yesterday afternoon, with Cardiff City running ... Read more »

Video: 'We're nowhere near full lockdown': Sajid Javid scrambles to cool alarm over 'super-mutant' Omicron Covid strain saying it's 'going to be a GREAT Christmas' - as new PCR rules for travellers and compulsory masks for shops and trains start on TUESDAY

Read more »

Kylie Jenner setzt auf deutsche Weihnachtstradition

© Admedia / ImageCollect.com Kylie Jenner ist bereits im Deko-Fieber für Weihnachten. Weihnachten rückt immer näher und viele Stars beginnen, ihre Häuser festlich zu schmücken. Kylie Jenner hat ihren Fans ... Read more »

Schools may have to break up early for Christmas as surge in Covid chaos wreaks havoc in classrooms

SCHOOLS could be forced to break up early for Christmas with a surge in Covid cases already wreaking havoc in classrooms. With more and more staff catching the virus, thousands ... Read more »

Switzerland BANS Brits from entering in bid to stop the spread of Omicron Covid variant

SWITZERLAND has banned all Brits from entering the country in a bid to contain a new strain of the coronavirus. Sajid Javid yesterday confirmed two cases of the Omicron Covid ... Read more »

Four exciting new WhatsApp features expected to launch in 2022

WHATSAPP has been spotted working on a selection of new features and a few are rumoured to be launching next year. From Instagram Reels on WhatsApp to no time limit ... Read more »

Wetherspoons accuses punters of faking injuries after ceiling collapses during Storm Arwen chaos

A WETHERSPOONS pub has accused punters of faking injuries after the ceiling collapsed during the Storm Arwen chaos. Customers fled the historic building of The North and South Wales Bank ... Read more »

Mum-of-22 Sue Radford decorates her ‘millionaire mansion' – and there's two Christmas trees and 25 stockings

BRITAIN’S biggest family have decorated their ‘millionaire mansion’ for Christmas, and it looks like a winter wonderland. Mum-of-22 Sue Radford, 46, showed off her beautiful 10-bedroom home in Lancashire, which ... Read more »

Iran subjecting nuclear inspectors to invasive physical searches ahead of key nuclear talks

Cruise missiles on the background of the flag of Iran. The concept of a military conflict in the Persian Gulf – iStockphoto Iran has been subjecting international nuclear inspectors to ... Read more »

In view of new Covid variant, govt lists measures to be followed by states/UTs

ln view of the possible threat that the new COVID-19 variant can pose to the nation, the Centre has asked all states and UTs to focus on intensive containment, active ... Read more »

Omicron variant: Returnees from abroad to MP in last one month to undergo COVID-19 test, says CM

Amid concerns over the potentially more contagious new Omicron variant of coronavirus detected in some countries recently, Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Sunday said all the people ... Read more »

Crucial that State provides subsidy for diabetic care: CJI

Chief Justice of India (CJI) N V Ramana on Sunday said it is essential that the State provides support and subsidy for diabetic care as the human cost is “immense” ... Read more »

Indonesia Open: Loh Kean Yew falls short in valiant final battle with world No.2 Viktor Axelsen

SINGAPORE — Loh Kean Yew put up a valiant battle, but the Singapore shuttler found world No.2 Viktor Axelsen a bridge too far to cross in his bid to land ... Read more »

Omicron: Five steps to avoid, ten to take immediately

© Provided by Firstpost Omicron: Five steps to avoid, ten to take immediately South Africa reacted with outrage to travel bans, first triggered by the UK, imposed on it in ... Read more »

Lockdown-like Curbs Likely to be Imposed in Karnataka For 2 Months, Govt Issues Fresh Advisory | Read Details

© Victor Dasgupta | India.com News Desk Karnataka Lockdown Update Bengaluru: The BS Bommai-led Karnataka government is likely to impose lockdown-like curbs/restrictions across the state for a period of 2 ... Read more »

Tripura Municipal Election 2021 Full Winners List: Winning candidates in AMC, Municipal Councils and Nagar Panchayats

© Provided by The Financial Express Tripura Civic Election 2021 Winners List, Tripura Municipal Elections Full List of Winners: The ruling BJP has fielded candidates in all the seats and ... Read more »

Omicron Covid Variant Update: Delhi Govt Puts All Departments on High Alert, Urges People Avoid Unnecessary Gatherings

© Surabhi Shaurya | India.com News Desk Image for representational purposes New Delhi: Delhi Deputy Chief Minister Manish Sisodia on Sunday informed that the government has put all government departments ... Read more »

Testing to genome sequencing: Here's how India preparing for Omicron variant

© Provided by Zee News New Delhi: With the emergence of the new ‘Omicron’ variant of the coronavirus, India has stepped up in conducting vigilant screening and COVID tests of ... Read more »

FORDA strike continues, to hold meeting tomorrow to discuss future course of action

© Provided by The Statesman FORDA strike continues, to hold meeting tomorrow to discuss future course of action Federation of Resident Doctors’ Association (FORDA) continues to observe nationwide strike of ... Read more »

Carrick insists incoming boss Rangnick will NOT revolutionise United

© Provided by Daily Mail MailOnline logo Michael Carrick has said the principles associated with Manchester United will continue regardless of who is the next manager. Carrick, a player and ... Read more »

Manchester United fans choose starting lineup to play Chelsea

Manchester United travel to Stamford Bridge in the final match of the weekend as they look to pick up just their second win in two months. But they face the ... Read more »

Boy, 16, named as victim of fatal stabbing

A teenager has been named as the victim of a fatal stabbing in west London. © Peter Byrne Officers were called to Southall at just after 9pm on Wednesday (Peter ... Read more »

Omicron: Passengers from South Africa were not tested and ‘got home in normal way', Sajid Javid admits

Air passengers from South Africa were not tested on arrival on Friday, despite fears they could be carrying the Omicron variant, Sajid Javid has conceded. © REUTERS Dutch health authorities ... Read more »

New Zealand politician cycles to hospital while in labour for second time: ‘Genuinely wasn't planning to'

A New Zealand politician cycled to hospital while in labour and delivered her baby an hour later. © Julie Anne Genter/Facebook via Reuters Julie Anne Genter rides a bicycle to ... Read more »

Burnley vs Tottenham predicted line-ups and team news ahead of Premier League fixture today

© PA Wire James Tarkowski has been linked with Newcastle and West Ham (Anthony Devlin/PA) – PA Wire Burnley welcome Tottenham to Turf Moor on Sunday in the Premier League. ... Read more »

We simulated Man City vs West Ham United to get a score prediction

After an impressive 2-1 victory over Paris-Saint Germain in midweek, Manchester City will be looking to build on their strong recent run of form as they host high-flying West Ham ... Read more »

Chelsea vs Manchester United live stream information and how to watch fixture online and on TV today

Premier League leaders Chelsea welcome Manchester United to Stamford Bridge this afternoon. © Getty Images GettyImages-1355165789.jpg The Blues are in fine form after thrashing Juventus midweek in the Champions League, ... Read more »

Steven Gerrard plots Liverpool transfer raid as Aston Villa linked to Jurgen Klopp favourite

Aston Villa are said to be interested in a move for Liverpool defender Joe Gomez, as Steven Gerrard plans to improve his squad in the January transfer window, according to ... Read more »

Moyes must ruthlessly axe "very shaky" West Ham star today, City could terrorise him - opinion

© Provided by Football FanCast West Ham United defender Craig Dawson during training West Ham United return to Premier League action this afternoon as they head north to face Manchester ... Read more »

Conte must unleash £18m-rated Spurs "nightmare" on Burnley, it could be a game-changer - opinion

© Provided by Football FanCast Spurs winger Lucas Moura during the warm up before Premier League clash against Leeds United Tottenham Hotspur will be looking to bounce back from their ... Read more »

New York Jets at Houston Prediction, Game Preview

New York Jets at Houston prediction, game preview, how to watch: Sunday, November 28 © Provided by College Football News New York Jets at Houston How To Watch Date: Sunday, ... Read more »

College football media reacts to Oklahoma State finally besting Oklahoma in Bedlam

Mike Gundy and the Oklahoma State Cowboys finally got the best of Oklahoma in Bedlam and college football media was hyped after a fantastic game. © Provided by Fansided After ... Read more »

Cassper Nyovest calls off Slik Talk boxing match

© Provided by Independent Online (IOL) Rapper Cassper Nyovest says his fight with YouTuber Slik Talk is officially off. The “Siyathandana” hitmaker claims Slik Talk keeps finding excuses not to ... Read more »

Inside Blue Origin's Astronaut Village where space tourists sleep in Airstream trailers and hang out around a firepit: 'It's not a five-star hotel.'

© Blue Origin/Joe Raedle/Getty Images Jeff Bezos’ Blue Origin has a campsite for its passengers called Astronaut Village. Blue Origin/Joe Raedle/Getty Images Blue Origin passengers sleep in Airstream trailers in ... Read more »

UAE records 60 new Covid-19 cases in lowest daily tally in 20 months

© VB Abu Dhabi, United Arab Emirates, May 4, 2020. Residents of Abu Dhabi are slowly coming out of their houses on Monday afternoon to enjoy the outdoors and get ... Read more »

10 luxury staycations to book over the UAE National Day long weekend

© Motivate Publishing Emirates Palace If you’re staying close to home over the UAE National Day long weekend, a staycation is never a bad idea. From all-inclusive deals to credit ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic