For those who oppose any kind of meaningful action on global climate change, consider the latest findings on the cost of inaction.
According to the International Energy Agency (IEA), the world will have to spend an extra $500 billion to cut carbon emissions for each year it delays implementing serious action on global warming. This would be on top of the $10.5 trillion investment needed from 2010 to 2030 to boost renewable energy development and improve energy efficiency.
Of that $10.5 trillion, the IEA states that about 45 percent, or $4.7 trillion in investment will be in transportation. Just one more reason we continue to remain so bullish on the electrification of our transportation infrastructure, mass transit and high speed rail.
The IEA report also pointed out that to continue current trends of energy demand and burning fossil fuels would lead almost certainly to massive climate change and irreparable damage to the planet.
Of course, if the international community does take significant and decisive action on climate change, the IEA scenario shows that – in regards to transportation – by 2030, conventional internal combustion engines will represent only about 40 percent of vehicle sales, with hybrids taking up 30 percent, and the rest being taken up by plug-in hybrids and electric vehicles.
We remain bullish on the premise that the international community does move forward – despite heavy lobbying that seeks to deter or at least slow progress on climate change legislation. There’s too much at stake – politically, environmentally and economically – to assume otherwise.
For another great analysis on the cost of climate change inaction, check out the Union of Concerned Scientists’ report here.