How much will the «green» energy transfer cost?

According to a number of analyst studies, the global energy transfer to carbon neutrality by 2050 will cost the world economy $275 trillion, or 7.5% of global GDP.

«In the period from 2021 to 2050, about $275 trillion of total expenditures on physical assets will be required in all the studied sectors, or about $9.2 trillion per year,» the analysts shared their opinion.

At the same time, half of the global expenditures on tangible assets will fall on the shoulders of the world's largest economies – the United States, China, the European Union, Japan and the United Kingdom – these countries will spend about 6% of their total GDP on decarbonization over 29 years.

Experts also believe that regions with lower GDP per capita and regions with large reserves of fossil fuels will need to invest more in relation to GDP in order to reduce their emissions and build a low-emission economy.

It is noted that Russia, Ukraine and the CIS countries will cost the most – 21% of GDP, and the countries of the Middle East and North Africa – 16.3% of GDP. In this regard, analysts fear that the process of energy transition may jeopardize progress in achieving economic development goals in these regions.