energy & climate change: sustainable is cheaper

Climate Change, Energy & Businesses : Cost Implications  to 2040

Climate Change is a reality. The cost of fossil fuels - the main current energy source - is increasing. This report presents to analyis of cost implications of the climate-energy nexus on different industry sectors, based on the analysis of currently available facts and forecasts:

  • The scarcity of fossil energy sources and the decline of easily accessible and exploitable oil fields implies the end of a century of cheap oil. The lack of investment, increasing demand from emerging economies, and commodity speculation suggests that cost of  fossil energy resources will further increase in the near future.

  • There is no reason - neither technical nor financial - why the world economy should not be powered by renewable energy technologies and sources by 2040. However, a comprehensive energy infrastructure transformation would require political consensus within, and in between countries.

  • The complete absence of vision and leadership amongst politicians around the globe suggst that this possibility is indefinitely small, i.e.  there will be no national or international framework to adequately tackle energy infrastructure transformation and climate change.

In the face of these challenges, businesses will need to develop their own strategy to deal with the increasing impacts of climate change (mainly the increase of frequency and ferocity of extreme weather events) and rising energy costs.

Highlights of the research findings include:

  • The combined cost of physical impacts of climate change, business disruption, and rising energy prices complete changes the cost structure of certain industries. For some sectors, additional cost in 2040 amount to nearly 100% of current cost

  • On the other hand, new opportunities arising from climate change and scarcity of fossil resources is still grossly underestimated

  • The report also shows that a business-as-usual approach (the BAU scenario) to energy-climate change challenges will be far more expensive than a Marshall approach

Click here to download the report (PDF, 6 MB).

This report was produced and published by SolAvis' parent organisation, SolAbility, in 2012.

Climate Change, Energy and Businesses: Cost Implications under different Policy Scenarios to 2040

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