Deloitte's Global Turning Point Report

The report outlines the pressing need for decisive global action to combat climate change. It presents an analysis of two contrasting scenarios: inaction leading to a global temperature rise of 3°C by 2100 and proactive efforts to achieve net-zero emissions by 2050. Through economic modeling, it evaluates the consequences of each path on global GDP, employment, and social well-being.

The cost of inaction is stark. If emissions continue unchecked, the global economy could incur $178 trillion in losses by 2070, with annual GDP reductions reaching 7.6% by that year. These losses represent a future marked by diminished productivity, job destruction, and a decline in living standards. Regions like Asia Pacific, Europe, and the Americas would bear significant economic damages, losing $96 trillion, $10 trillion, and $36 trillion, respectively. Vulnerable populations, particularly in regions with weaker resilience to climate shocks, would face severe challenges, including food shortages, deteriorating health, and disrupted livelihoods. The ripple effects would exacerbate existing inequities, leaving the world less capable of addressing future crises.

In contrast, swift and coordinated decarbonization could transform the global economy, adding $43 trillion in net present value between 2021 and 2070. Although the transition requires substantial upfront investments and temporary disruptions, its benefits far outweigh the costs. Achieving net-zero emissions would stimulate economic growth, create new industries, and drive job opportunities. Regions would experience varying timelines for these benefits.

The report emphasizes that the transition requires unprecedented global coordination. Governments must enact clear policies, set regulatory frameworks, and incentivize decarbonization. Financial markets play a pivotal role in mobilizing investments in renewable energy, infrastructure, and emerging technologies. Businesses must adapt through innovation, shifting to sustainable practices that align with a low-emissions economy. Societies also have a critical part to play, ensuring equitable access to the benefits of decarbonization while mitigating impacts on vulnerable communities.

Deloitte emphasizes that time is a critical factor. Each month of delay in addressing climate change increases economic risks and locks in further damage. However, the pathway to a sustainable future is still attainable. Achieving net-zero emissions by midcentury is not only necessary to limit warming to 1.5°C, but it is also an opportunity to reshape the global economy for resilience, equity, and long-term prosperity.