Sustainable growth: one more small push…
Economic growth can help contain climate change through the financial resources it brings with it… provided it is sustainable and inclusive. And yet, carbon emissions are still on the rise and a large slice of humanity is in danger of being left behind.
What does this McKinsey report say is missing for sustainable growth? We need to:
- Reduce economic and social discrepancies: households have to earn enough to live on properly and to contend with climatic disasters. This means living well above the poverty line and, depending on the country, earning 5 to 50 dollars more a day.
- Make massive investment in low-carbon technology: countries should earmark between 600 and 5 trillion dollars by 2030.
These astronomical figures require solid economic growth that benefits households and investments. But even a 2.1% annual growth rate in the United States by 2030 would only cover 36% of household needs and 7% of sustainable investment requirements.
How can we close the gap? Through innovation, which will bring down the price of investing in green technology, and through proactive government policies.
Read on: a 3-minute article or the entire 32-page report!
To go further
“Toward a sustainable, inclusive, growing future : The role of business”
Group report (McKinsey Featured Insights, November 2022).
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