How the global economy will be impacted by the war on climate change


The benefits of climate change mitigation are positive outcomes associated with generating fewer greenhouse gasses. Co-benefits might amount to trillions of dollars annually, including decreased air pollution, lower fuel costs, national energy security, and employment opportunities.

Policy benefits

GHG mitigation is a significant deciding factor in policymakers' calculations, but they are largely overlooked or not even discovered by companies and decision-makers, let alone measured or monetized. The global economy and technological innovation may gain significantly from proper co-benefit consideration, which can also considerably impact policy decisions about the timing and intensity of mitigation measures. As a result, co-benefits have become a more prominent topic in international politics.

Economic growth and employment

Co-benefits can have a favorable effect on employment, energy independence, industrial development, and self-consumption. The use of renewable energy sources may increase employment possibilities. The number of jobs per typical MW capacity can quadruple when coal power stations are replaced with renewable energy sources, depending on the nation and deployment model. Investments in renewable energy, particularly wind and solar power, can raise output value. Renewable energy can increase energy independence and supply security for nations that rely on imported energy. National energy production from renewable sources reduces the need for imports of fossil fuels, increasing annual economic savings. Investing in renewable energy also has advantages for businesses and households. Low-income households are given incentives to install rooftop solar and operate their PV systems, and the residential sector can benefit from yearly cost savings. These eco-friendly homes are designed to help many people reduce their carbon impact. All of these residences are categorized as low-carbon dwellings. To qualify, they must have one of the following characteristics: a thermally efficient constructed form, passive low-energy design, or the application of green technologies. These homes benefit the planet by lowering carbon emissions, but they are also appealing and affordable for buyers. They assisted many individuals who had trouble finding adequate housing to become homeowners. The possibility of becoming homeowners and protecting the environment delighted eager homebuyers keen to buy carbon-efficient homes.

Energy access

This dimension benefits from secondary mitigation strategies. Blackouts continue to pose a significant obstacle to the complete electrification of rural areas by a centralized power infrastructure. Renewable energy installations might benefit rural areas that are not fully wired. Mini-grids fueled by solar energy can still be profitable, affordable, and less prone to power outages. Additional social repercussions of energy reliability include higher educational standards.


A person's employment is a key factor in why they need to use different transportation alternatives regularly. Employees who work remotely have fewer in-person commutes to the office and utilize fewer vehicles daily, which reduces overall emissions. By 2050, it is predicted that 40 to 49 metric tons of GHGs could be reduced if as many potential players as possible implement teleworking. In addition, Teleworking has several other advantages, including improved productivity, financial savings for the business (because there are fewer office space expenses), and enhanced employee happiness. However, employees' interpersonal and psychological anxieties about potential adverse effects on their jobs and greater social isolation are holding this notion back.