Climate change is coming, and it will be big. Over the next 30 years, businesses, investors and the US government plan to transform the country from carbon neutrality. They are trying to limit and pay for the cost of climate change that has already taken place.
The bill is shared with federal and state governments, businesses and consumers. Banks and investors have promised to turn the subsidy from fossil fuels and businesses to reduce carbon emissions. Loss of jobs and new jobs were created.
Although such estimates are inherent in nature, the total amount could require tens of trillions of investments. The biggest and most costly measure is the use of renewable resources to generate and supply electricity throughout the country. The estimate will increase from $ 7.8 trillion to $ 13.9 trillion over the next 30 years, according to a team of energy researchers at Princeton University.
As part of the US economy, more than 5% of the estimated cost of replacing the electricity system is the country’s annual economic output. This is far less than 10% of GDP in 2008. Loss of work will be offset by profits, although the new jobs are mostly in different locations and require different skills. Princeton researchers estimate cost of full and partial transition to renewable energy by 2050
Another major cost is to replace fossil-powered cars and trucks with electric vehicles, to make buildings more efficient, and to heat and cool them with electricity rather than gas or oil. That price is hard to estimate and hard to pay. Cars and trucks are getting old, so replacing them with electric cars over time can be free if the vehicles are reasonably priced. Replacing gas and oil heating and cooling systems with electricity makes homeowners proud at real costs. Billions are being invested in technologies that can change the total cost of fossil fuels, such as battery storage, green hydrogen, and carbon footage.
Public Opinion and Investor Money Back Shift
Businesses and governments are stepping up their efforts to reduce carbon emissions due to climate change. Public Opinion Many Americans are more concerned about climate change than ever before. In the past, when the economy was strong and during difficult times, interest in environmental issues increased. Environmental problems have increased since the outbreak of the CVD-19 outbreak.
Climate change, such as wildfires, droughts, heat waves, hurricanes, and floods, is often accompanied by rising prices. Climate and weather disasters have caused an average of $ 84 billion in inflation in the United States over the past decade, compared to $ 54 billion.
For example, there have been more hurricanes in recent years, causing $ 1 billion or more damage. The United States has experienced 10 or more hurricanes in just 11 years. With the exception of one of those years, it all happened in 2008. The National Oceanic and Atmospheric Administration (NEA) said the increase was caused by severe storms and the spread of houses and infrastructure to high-risk areas.
Investors are responding to climate change by investing in funds that use environmental, community and corporate governance standards. A.D. By 2020, more than $ 51 billion has been invested in a sustainable fund, with about a quarter of its total assets flowing into US funds, more than double the 2019 record, according to Morningstar Direct. The market is growing rapidly this year.
American companies are pursuing those investors by setting goals to reduce emissions to curb climate change. More than 170 U.S. companies have pledged to significantly reduce global greenhouse gas emissions to limit global warming to 2 degrees Celsius or less, according to scientific targets. A Sustainable Report on the Impact of Climate on 90% of Companies in the S&P 500 Published in 2019, 20% of 2011, according to S&P Global Sustainable1.
At next month’s UN Climate Change Conference in Glasgow, Biden’s administration will announce similar goals for consumers, investors and businesses. The most important international conference on environmental protection since the 2015 Paris Agreement.
Representatives of nearly 200 countries are trying to reach agreements to reduce carbon emissions and pay for fossil fuels.
The goal is to limit climate change.
With current greenhouse gas emissions, scientific models that estimate the amount of carbon in the atmosphere, and other climatic factors, they predict that the earth will warm up by 2.7 degrees Celsius to 2.7 degrees Celsius compared to pre-industrial standards. According to a United Nations report released in September, if most countries take action now, the earth will be slightly warmer.
Costs to limit and adapt to climate change
Businesses are spending billions of dollars to protect their assets and convert them into renewable energy sources, and they expect to spend more. According to Four Twenty Seven, owned by Moody’s Investors Service, the worst weather in the next 20 years will put $ 138 billion worth of consumer goods at risk. Switching to renewable energy such as wind or solar energy will cost billions more.
A.D. In 2019, new investments in electricity, transmission and distribution in the United States reached $ 55 billion, the largest and growing share of expenditure.
Giant Duke Energy based in North Carolina Corporation
To reduce net carbon emissions to zero by 2050, $ 16.2 billion has been spent or planned on $ 16.2 billion on climate-related projects over the past decade, according to the company’s environmental reports for the non-profit CDP system.
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Duke ranks third among US service providers for climate change risk after NextEra Energy Inc.
And Dominion Energy Ink.,
Like Moody. Since 2016, Duke has spent hundreds of millions of dollars repairing and strengthening infrastructure in the wake of hurricanes in Florida and North Carolina, according to annual reports.
Duke’s spokesman, Neil Nisan, said the company was committed to tackling climate change.
Power plants such as the Duke will need to spend more to achieve the goal of net zero carbon emissions by 2050. Solar, wind, water and other renewable plants consume at least 80% of electricity.
Semi-renewable Net Zero Road will have more than 1,000 megawatts of solar and wind power to the grid by 2050 to meet the country’s energy needs. According to Energy Information Administration, this is more than six times the capacity of the net utility generators by 2020.
What happens at work
Switching to renewable energy will encourage construction. To make up for the loss of fossil fuels, new solar and wind power plants must be built at an unprecedented rate.
The Princeton Net Zero study found that 700 coal mines will be shut down and more than 500 coal-fired power plants will focus on job losses in rural communities. Oil and natural-gas production and consumption will also be reduced, leading to job losses in energy-rich regions.
Two energy-producing states, Wyoming and North Dakota, are expected to suffer net losses.
Changing the country’s energy grid could increase labor force in the energy sector by 30% over the next decade, providing an opportunity to compensate for the loss of fossil fuels in policy and training programs.
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What does a climate agreement cost?
Write Shane Schifflet at Shane.Shifflett@wsj.com
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