# Deloitte research reveals inaction on climate change could cost the world’s economy US$178 trillion by 2070
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-06-14
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Global Economy Could Gain US$43 Trillion with Rapid Net-Zero
Meta Description: Discover how unchecked climate change could cost the global economy US$178 trillion over 50 years and the potential gains of US$43 trillion with a net-zero
URL: https://financedigest.com/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-worlds-economy-us178-trillion-by-2070html

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_By contrast, the global economy could gain US$43 trillion over the next five decades by rapidly accelerating the transition to net-zero_

**Key highlights:**

- _Deloitte’s Global Turning Point Report finds that unchecked climate change could [cost the global economy US$178 trillion over the next 50 years](https://www.financedigest.com/commonenergy-mistakes-costing-homeowners-hundreds-of-pounds-each-year.html "Commonenergy mistakes costing homeowners hundreds of pounds each year"), unless global leaders unite in a systemic net-zero transition_
- _The recently launched Deloitte Center for Sustainable Progress (DCSP) will focus on holistic, data-driven analysis and results-oriented [thought leadership](https://www.financedigest.com/young-leaders-forum-paul-forkans-leadership-thoughts.html "Young Leaders Forum: Paul Forkan’s leadership thoughts"), to guide organizations through their sustainability journeys_

**13 June, 2022**—A new report from the [Deloitte Center for Sustainable Progress](https://www2.deloitte.com/global/en/pages/about-deloitte/articles/sustainability-and-climate.html/#vertical_flipping_tiles_frag_flipping_tiles_header2) (DCSP) released today during the World Economic Forum’s annual meeting indicates that—if left unchecked—climate change could cost the global economy US$178 trillion over the next 50 years, or a 7.6% cut to global gross domestic product (GDP) in the year 2070 alone. If global warming reaches around 3°C [toward the century’s end](https://www.financedigest.com/boe-raises-rates-again-as-investors-look-towards-end-of-hikes.html "BoE raises rates again as investors look towards end of hikes"), the toll on human lives could be significant—disproportionately impacting the most vulnerable and leading to loss of productivity and employment, food and water scarcity, worsening health and well-being, and ushering in an overall lower standard of living globally.

Deloitte’s [Global Turning Point Report](https://www2.deloitte.com/global-turningpoint) is based on research conducted by the Deloitte Economics Institute. The report analyzed 15 geographies in Asia Pacific, Europe, and the Americas, and found that if global leaders unite in a systemic net-zero transition, the global [economy could see new five-decade gains](https://www.financedigest.com/stocks-dollar-gain-on-resilient-u-s-economy.html "Stocks, dollar gain on resilient U.S. economy") of US$43 trillion—a boost to global GDP of 3.8% in 2070.

“The numbers speak for themselves and [businesses should be reimagining their practices](https://www.financedigest.com/6-practical-tips-for-starting-an-online-business.html "6 Practical Tips for Starting an Online Business") to help build a more sustainable future for all. Taking small steps in the right direction will [pay dividends in the future](https://www.financedigest.com/the-future-of-b2b-payments-buy-now-pay-later.html "The Future of B2B Payments: Buy Now, Pay Later"). It has become clear that if [businesses do not prioritize sustainability and understand the impact](https://www.financedigest.com/exclusive-qatarenergy-boss-says-world-cup-tension-will-not-impact-german-business.html "Exclusive-QatarEnergy boss says World Cup tension will not impact German business") they are having on the environment, valuable talent, revenue and market share may be lost,” said Mutasem Dajani, CEO, Deloitte Middle East.

Transforming the [economy for a low-carbon future will require extensive coordination and global](https://www.financedigest.com/global-economy-weathered-98bn-natural-hazard-loss-in-first-half-of-2016-according-to-aon-catastrophe-report.html "GLOBAL ECONOMY WEATHERED BN NATURAL HAZARD LOSS IN FIRST HALF OF 2016, ACCORDING TO AON CATASTROPHE REPORT") collaboration throughout industries and geographies. Governments will need to collaborate [closely with the financial](https://www.financedigest.com/fast-track-financial-close.html "FAST-TRACK FINANCIAL CLOSE") services and technology sectors—leading the charge on sustainable progress through global policymaking, greater investment in clean energy systems, and a new mix of green technologies across industries. According to the Deloitte Economic Institute’s  research, collectively pivoting from an [economy reliant on fossil fuels to an economy primarily powered by renewable energy would spur new sources of growth](https://www.financedigest.com/visa-revenue-growth-slows-more-as-tough-economy-sobers-spending.html "Visa revenue growth slows more as tough economy sobers spending") and job creation. [Global cooperation and regulation are vital to setting the stage](https://www.financedigest.com/analysis-at-world-cup-saudi-crown-prince-moves-back-on-to-global-stage.html "Analysis-At World Cup, Saudi crown prince moves back on to global stage") for a successful transformation.

“It’s important that the [global economy evolves to meet the challenges](https://www.financedigest.com/global-economy-seen-facing-a-challenging-year-eurochambres.html "Global economy seen facing a challenging year -Eurochambres") of climate change,” said Dr. Pradeep Philip, Deloitte Economics Institute. “Our [analysis shows that a low-carbon future is not only a societal imperative but an economic](https://www.financedigest.com/analysis-russians-feel-little-economic-pain-now-long-term-outlook-darkens.html "Analysis: Russians feel little economic pain now, long-term outlook darkens") one. We already have the technologies, business models, and policy approaches to simultaneously combat the climate crisis and unlock significant [economic growth](https://www.financedigest.com/uk-economic-growth-slowed-again-in-august-as-post-lockdown-shortages-bite-pmi.html "UK economic growth slowed again in August as post-lockdown shortages bite – PMI"), but we need governments, businesses, and communities globally to align on a pathway toward a net-zero future.”

“In order to find new and [lasting solutions to these societal challenges](https://www.financedigest.com/walmarts-long-lasting-challenge-luring-budget-shoppers-back-to-its-stores.html "Walmart’s long-lasting challenge: luring budget shoppers back to its stores"), we must model new forms of cooperation and pursue a multi-party, holistic approach. The Turning [Point analysis](https://www.financedigest.com/foley-catheters-market-pin-point-analysis-for-changing-competitive-dynamics.html "Foley Catheters Market: Pin-Point Analysis For Changing Competitive Dynamics") lays a powerful foundation of economic benefit and growth for decision-makers, influencers and participants to work from for individual and shared prosperity,” said Prof. Dr. Bernhard Lorentz, founding chair of the DCSP and Deloitte [Global Consulting Sustainability & Climate Strategy leader](https://www.financedigest.com/acquisition-creates-a-uk-global-leader-to-help-organisations-win-in-the-digital-revolution.html "Acquisition creates a UK & Global leader to help organisations win in the Digital Revolution").

**The [report](https://www.financedigest.com/september-tropical-cyclones-cost-global-economy-more-than-4bn-according-to-aon-catastrophe-report.html "September tropical cyclones cost global economy more than bn, according to Aon catastrophe report") details four key stages for decarbonization globally:**

1. The public and [private sectors](https://www.financedigest.com/dollar-slides-on-contraction-in-private-sector-activity.html "Dollar slides on contraction in private sector activity") unite, collaborating to build effective and foundational frameworks and policies to drive actionable change.
2. Business and governmental leaders make significant investment, sparking structural changes to the global [economy that prioritize low-emissions industries and accelerate](https://www.financedigest.com/bank-of-canada-seen-on-hold-even-as-economy-accelerates.html "Bank of Canada seen on hold even as economy accelerates") the transition to net-zero.
3. The [world’s geographies approach their respective “turning points”—when the benefits of a net-zero transition begin to outweigh the costs—and ultimately drive regional net-positive growth](https://www.financedigest.com/bridge-the-gaps-in-big-data-and-cross-into-a-world-of-growth.html "Bridge the gaps in Big Data – and cross into a world of growth") and value.
4. Following the turning point, society realizes a greener future—where interconnected, low-carbon systems underpin a clean [economy that grows](https://www.financedigest.com/german-economy-expected-to-grow-modestly-in-2023-european-commission.html "German economy expected to grow modestly in 2023 – European Commission") at an increasingly faster rate than its carbon-intensive alternative.

The [analysis shows that no two paths](https://www.financedigest.com/analysis-central-europes-path-to-lower-inflation-strewn-with-hazards.html "Analysis-Central Europe’s path to lower inflation strewn with hazards") to net-zero are the same. Each region will undergo its own journey based on a range of factors, such as the way governing bodies and societies are structured, exposure to [climate change and overall risk](https://www.financedigest.com/institutional-investors-back-shell-board-lawsuit-over-climate-risk.html "Institutional investors back Shell board lawsuit over climate risk") profile, and marketplace strengths and capabilities. Similarly, each region will have its own [unique turning point](https://www.financedigest.com/digitally-projected-revenue-to-be-the-unique-selling-point-of-aerosol-therapy-market.html "Digitally projected revenue to be the unique selling point of Aerosol Therapy Market"). For example, [Asia Pacific is expected to see](https://www.financedigest.com/heineken-sees-europe-resilience-offseting-asia-slowdown-risk.html "Heineken sees Europe resilience offseting Asia slowdown risk") the benefits of a low-carbon transition as early as the 2020s, while Europe will not see returns on investment until the 2050s. The transition is expected to play out at varying speeds, however, if rapid action is taken, all regions are expected to achieve their turning point by 2070 and continue to [reap the benefits](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?") long after.

**More about the Deloitte Center for Sustainable Progress**

The DCSP builds upon Deloitte’s aspiration to address climate and sustainability challenges more broadly by acting as a convener of specialists, industry influencers, and thought leaders from [around the world](https://www.financedigest.com/around-the-world-in-mobile-payments.html "Around the world in mobile payments"). The DCSP delivers actionable, data-driven, and trusted research and thought leadership that meets the urgency of this moment – when insights and collaboration for societal transformation are more important than ever before.

**Notes:**

- Deloitte’s [Global Turning Point Report](https://www2.deloitte.com/global-turningpoint) is a culmination of several regional reports examining the economic impact of climate change globally.
- Learn more about Deloitte’s recently announced [Sustainability & Climate practice](https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/deloitte-launches-global-sustainability-and-climate-business.html).

Please visit Deloitte’s website for more information on Deloitte’s [Sustainability & Climate](https://www2.deloitte.com/global/en/pages/about-deloitte/articles/sustainability-and-climate.html/) practice and services.


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