Green industries could add $10.3 trillion to the world’s economy if net-zero carbon emissions are reached by 2050, according to a new report from Oxford Economics and Arup. This amount represents 5.2% of the global GDP.
According to the report, governments and businesses under increasing pressure from costly climate-related weather events may even begin to see a rapid transition away from fossil fuels as a net positive as well as a method to avoid further climate disruptions. This shows the green transition, rather than burdening the global economy, can bring substantial opportunity related to greater and more inclusive prosperity.
This report states there are three reasons why a green transition could add sizable value to the global economy: the switch to clean energy will create new areas of competition, green markets will emerge, and the world could benefit from higher productivity relative to a scenario in which insufficient action is taken on climate change.
However, this $10 trillion can only be added to the world’s economy if it reaches net-zero emissions, which means carbon emissions are balanced with the removal or elimination of carbon emissions from the atmosphere. Truly reaching net zero emissions is estimated to require hundreds of trillions of dollars in public and private capital investment.
“The transition will be costly and painful for certain enterprises, industries, and economies,” the authors wrote. “But in a transition to a net zero emissions environment by 2050, under a rapid transition away from carbon-intensive activities, a new competitive landscape will emerge. In many sectors, this requires a fundamental shift to consuming renewable fuels and energy. In others, new green equipment and technology will be needed in production. All sectors will experience short-term costs but the chance of earning large rewards over the medium- and long-term horizons.”
OneH2 sees this report as a huge opportunity for our company to continue committing our team to hydrogen sector efforts. Hydrogen fuel and fuel cell vehicles are one of many renewable energy solutions that can support the shift to green energy and net-zero carbon emissions. However, more hydrogen infrastructure must be put in place to fully leverage its benefits as an alternative to fossil fuels and support the transition away from fossil-based resources.
As a clean energy source, hydrogen can help many sectors achieve net-zero emissions, including material handling, industrial equipment, trucks, forklifts, and public and personal transportation.
OneH2 is committed to playing its part in building a sustainable future by investing in hydrogen technology innovations, which will help combat climate change and position our partners for significant growth during this hydrogen revolution.