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As COP29 opens: Goldman Sachs projects $75 trillion price tag for climate action
In a striking reassessment of global climate goals, Goldman Sachs Research has revealed that the world needs to invest more than $75 trillion to achieve net zero carbon emissions by 2070. This updated forecast, detailed in their report “Carbonomics: The GS net zero carbon scenarios — a reality check,” represents a significant increase from their previous projection of $62 trillion.
A shifting timeline and growing investment needs
The investment banking giant’s revised outlook acknowledges that while the 1.5-degree Celsius target set in the Paris Agreement appears increasingly unattainable, a pathway to limiting warming to 2 degrees remains possible. According to Michele Della Vigna, head of Natural Resources Research in EMEA at Goldman Sachs Research, these investments would “have the potential to not only transform the global energy ecosystem but also the economy and society’s standard of living.”
The massive investment requirement, averaging “$1.5 to $2 trillion of infrastructure spending per year through 2070,” encompasses several critical sectors. The plan calls for $7 trillion to be directed toward power networks, while energy storage systems will require $5.1 trillion in investment. The transition to electric vehicles…
