Adaptation to climate change cost France a point of GDP by 2030
Paris, January 28 / WAM / The General Directorate of the French Treasury revealed, in a report, that the adaptation to climate change may lead to a “temporary and moderate economic slowdown”, and it costs France nearly a full point of GDP by 2030.
The Directorate’s experts conducted a study of the economic impacts associated with the transition to carbon neutrality, according to various scenarios.
France aspires to reduce its emissions of greenhouse gases by 50% by 2030 compared to the levels of 1990, and it seeks to reduce dependence on fossil energy significantly during the same period.
Natalie George, head of the Department of Economic Policies and European Affairs in the Directorate, explained that the organized and coordinated transition towards carbon neutrality will constitute a moderate and temporary economic cost.
The report indicates that increasing carbon taxes and costs associated with greenhouse gas emissions, whether through taxes, subsidies or legislation, may lead to a dual impact, at the level of demand, and consumers will suffer from high prices, which reduces their purchasing power, while at the level of supply it will be faced Companies are challenges in high production costs.
According to the report, it is expected that this double effect will cause economic activity, which may cost France about 0.9% of its gross domestic product in 2030, compared to the scenario, which does not include additional measures to reduce emissions.
The report expects the economic losses to start partially decline as of 2040, as losses can reach about 0.6% of GDP by 2050.
To alleviate the effect of climate change, France needs huge investments in the public and private sectors that may reach 110 billion euros by 2030, according to the report. These future costs will be highly dependent on the development of technology, however, the report indicates that these costs remain much less than the damage that may result in climate change if decisive action is not taken.
According to the Central Banking Network, failure to take the necessary measures may cost France and the European Union about 6% of GDP by 2050, while this number may reach 9% globally.
The report stresses that the transition to carbon neutrality represents an economic challenge, but it is an urgent necessity to reduce the repercussions of climate change, which may be more expensive and harmful in the future, but moving now with organized planning that may reduce the weight of these damages and establish a more sustainable economy in the coming decades.
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