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Reducing Carbon Emissions Will Benefit the Global Economy

Climate change is the greatest human issue of our time Global temperatures have risen by 1 degree Celsius since the preindustrial era and, under current policies, are predicted to rise by 3.1-3.7C at when the year is over. What is the reason we should lower carbon emission? Carbon emissions are on the planet for a period of 100 years, and as much as 80percent of them dissolve to the ocean in a time between 20 and 200 years. The climate crisis impacts the environmental, but also the economy. The evidence suggests that cutting carbon emissions can boost economies, but can governments take the action necessary?

What is the reason we need to reduce carbon emissions?

Global temperature rise and climate change have created conditions that are unsuitable for living and pose greater dangers to the health of people. The problems caused by the excess carbon emissions to the atmosphere are extensive and extensive. From aggravating the effects of outdoor air pollution that according to the World Health Organisation led to approximately 4.2 million deaths prematurely, 90% of them live in countries with low or middle incomes to ocean acidification which causes the temperature of the ocean to rise as coral bleaching occurs, causing irreparable damage to marine ecosystems food insecurity, when changes in precipitation and temperature impact crop yields and shifts in the zones of agriculture.

How do Greenhouse Gases Impact the economy?

A study in 2017 revealed there was China, 1.23 million air pollution-related deaths occurred in 2010, which accounted for the equivalent of 13.2 percent of the nation’s GDP. The identical year, pollution accounted for more than 23 000 deaths in the UK and accounted for up to 7.1 percent of GDP. A different report predicts that annual premature deaths caused by outdoor air pollution could rise by 9 million in 2060 from 3 million deaths in 2010 and an increase in global annual hospital admissions to 11 million patients in 2060, up from 3.6 million in the year 2010. One of the most significant advantages of the reduction of the carbon footprint is it will lower death rates attributed to air pollution. It also helps reduce pressure on health systems.

In order to achieve growth in the economy and still focus on emission reductions, separation between the two needs to be achieved. There are numerous ways to accomplish this and one of them is the introduction of the carbon tax.

Carbon taxation is seen as a means to cut emissions while also making economic efficiency and are viewed as a way to improve the functioning and efficiency of our economy. decrease dependence on fossil fuels from abroad (for countries that import them) to reduce pollution, and reduce spending by the government. In the last two decades, Sweden have proven that through their carbon tax. introduced in 1991. The price of carbon has increased steadily between EUR29 and then EUR125 in 2014. Worldwide, Sweden has the highest amount of carbon taxation worldwide and has managed to attain decoupling. The money generated from this tax is utilized wherever the country requires it.

China is the largest global carbon emitter, and suffers significant amounts of pollutant pollution. In 2010, China’s Low Carbon Pilot Program (CLCP) was adopted in eight provinces and five cities with the aim of separating the growth of economics from fossil fuels through a shift to an economy that is based on the efficiency of energy use and renewable energy sources. Although the cities in the pilot have made progress in developing low-carbon plans but there are some obstacles, like a lack of an specific definitions for the term ‘low carbon city’, the confusion that results from a variety of parallel programs and insufficient policies to support them. But the CLCP encourages economic growth in the region and, while it can increase the cost of production, it encourages the expansion of companies in terms of output and yields. Furthermore, it aids in enhance the internal administration, effectiveness, and creativity, which leads to greater productivity and competitiveness. A study in 2019 has shown that as a result of the CLCP the degree of competitiveness on the market is increased, which encourages economic growth, not only by selling goods at affordable price, but promoting for the development of new products. This is evident in the month of July 2021, when China successfully launched an emissions trading system for its national market with a lengthy delay. The market was able to see 4.1 million tons of carbon dioxide emissions quotas valued at USD$32 million being trading on the initial day of its launch which makes it the largest carbon market on the planet.

A 2017 study suggests the best method to reduce production costs is to develop new technology that can reduce carbon dioxide emissions, while also reducing costs. Based on the National Statistics that, because of not just climate regulations and economic structural changes as well as technological advances which took place in the UK and the UK region, the region was able to attain decoupling between the years 1985 and 2016 in which GDP per person increased by 70.7 percent while emissions decreased by 34 percent. The technological advances involved improvements in the efficiency of cars and the substitution of fossil fuels by renewable energy. In the years 1990 to 2017 the amount of renewable energy was up by 267 percent while consumption of fossil fuels declined by 22 percent. Denmark’s rapid rise in renewable energy has reduced carbon emissions and encouraged local production.

In contrast, productivity is adversely affected by climate change because of the depletion of infrastructure caused by disasters like floods rising sea levels, and the affliction of agriculture.

A study published in the journal Nature The study claims that for every billion tonnes of carbon dioxide, the loss in GDP could be as high as half a percentage. Countries that are developed like Canada, Germany, New Zealand and the UK will experience less than 0.1 percent loss in productivity per unit of emission. However, the productivity loss in developing nations such as India, Thailand and Malaysia can range from 3% to 5% of the total GDP for each billion tonnes of carbon emissions. In essence the reduction in carbon emissions will result in a decrease on productivity declines (the extent of the reduction will depend on the specific country).

Additionally, if we explore every one of the low-cost climate mitigation opportunities that are currently available The total cost to address the climate crisis could be between 200 and 300 billion euros annually by 2030, which is just 1% less projected global GDP by 2030.

It is crucial that all countries get this decoupling done and reduce carbon emissions, perhaps by imposing a carbon tax to ensure a robust and sustainable economy. Inaction or act too late, could cause worse climate degradation, impacting the chance that humanity has of getting a new lease to the earth.