The extra amount the world must spend each year to create a 'net-zero' emissions economy is equivalent to half all profits currently generated by companies globally, consultancy group McKinsey estimated in a report on the energy transition.
The logo of consulting firm McKinsey and Company is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles PlatiauJan 25 - The extra amount the world must spend each year to create a "net-zero" emissions economy is equivalent to half all profits currently generated by companies globally, consultancy group McKinsey estimated in a report on the energy transition.
The report's main finding was that this would require spending on physical assets for energy and land-use systems of about $275 trillion, or $9.2 trillion per year on average - an annual increase of $3.5 trillion on current spending. "While these spending requirements are large and financing has yet to be established, many investments have favorable return profiles and should not be seen as merely costs," it added.
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