Cutting carbon can be profitable
Businesses can make a profit by reducing carbon inefficiencies.
Half the cuts in greenhouse gas emissions needed to make the world safe can be achieved at a net profit to the global economy, a study has found.
McKinsey, the consultancy, published a report on 14/2/08 concluding that investment in energy efficiency would yield a profit of about 17%.
By using only energy-saving measures that could be done quickly and at minimal cost, this would also cut carbon dioxide emissions by about half the limit of safety according to the Intergovernmental Panel on Climate Change.
Diana Farrell, director of the McKinsey Global Institute, said: “Efficiency is the fastest, cheapest way to reduce greenhouse gases and could bring large profits to the global economy,” she said.
investors demand action
The study comes alongside a wave of interest and initiatives from Investment fund giants.
Until recently they saw climate change as the nagging of an environmentalist lobby. More urgent warnings from scientists plus rising insurance bills and other costs from global warming have convinced most in the commercial world to act.
Some of the largest institutional investors in the world recently called on the US Congress to introduce a mandatory national policy to reduce greenhouse gas emissions by up to 90% below 1990 levels by 2050.
It is the latest move that underlines the way business leaders have dramatically seized the environmental agenda and are now pushing politicians to tackle global warming.
Climate change had the potential both to cause “devastating damage” to the economy if nothing is done AND to generate very profitable investment opportunities if sensible and early action was taken to reduce its impact.
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