How Much Will It Cost To Stop Climate Change

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Breaking| Oct 24, 2019, 02:08pm EDT |

Stopping Global Warming Volition Cost $fifty Trillion: Morgan Stanley Report

Sergei Klebnikov

This article is more than than two years old.

A new report estimates that $l trillion of investment is needed in the next three decades.

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Topline: While estimates vary on the cost of halting global warming and reducing net carbon emissions to zero, a new report from Morgan Stanley analysts finds that to practice so by 2050 the world will need to spend $50 trillion in 5 primal areas of zero-carbon technology.

Renewables volition crave $fourteen trillion of investment, and could deliver effectually fourscore% of global ability by 2050—upwards from 37% today. As solar energy becomes more affordable, information technology will go the fastest-growing renewable technology.
Electric vehicles will become more important than ever in the bid to reduce greenhouse gas emissions from automobiles; $xi trillion volition be needed to build more factories and develop the batteries and infrastructure needed for a widespread switch to electrical vehicles—the total number of which could abound to nearly 950 million by 2050.
Carbon capture and storage, which Morgan Stanley says is the only viable option for reducing emissions from coal-fired plants, is another key surface area and would need well-nigh $2.five trillion of investment.
Hydrogen tin can help provide clean fuel for ability, cars and other industries—it will crave nearly $xx trillion of cumulative investments to assistance brand the gas, increase capacity to power plants and manage its storage.
Biofuels, like ethanol, will be fundamental for future global transportation and eventually spread to aircraft and other forms of other travel—requiring $2.seven trillion past 2050.

Primal background: The research, first reported on by Bloomberg, found that to reduce net carbon emissions to zero and run into the Paris Agreement'south goal, the earth would accept to eliminate 53.5 billion metric tons of carbon dioxide each year, co-ordinate to the Morgan Stanley analysts. Carbon emissions from fossil fuels hit a record high last year, highlighting the demand to act quickly on climatic change. Across the social and environmental consequences from failing to human action on climate change, going beyond a temperature rise of 2 degrees Celsius could upshot in a loss of $ten trillion to $20 trillion of global Gdp by 2100, Morgan Stanley predicts.

Large numbers: Morgan Stanley recommended a handbasket of stocks in each area of zero-carbon tech that could profit from increased climatic change spending:

For renewables, companies like SunPower, General Electrical and Huaneng Renewables are some of the banking concern's tiptop picks.
Within the electrical vehicles space, Tesla is the "only pure play"—though they should be followed by VW and Toyota in the long run, while other companies like Panasonic and Albemarle are amongst the leading players in lithium technology and supply.
In carbon capture and storage tech, Morgan Stanley highlights Bloom Energy, Exxon, Chevron and BP, amid others.
For hydrogen, companies to spotter include Air Liquide, Siemens and Alstom.
In the biofuels sphere, corporations similar Neste, Sao Martinho, Shell and Valero Energy are all well-positioned.

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Sergei Klebnikov