Climate-Change Costs Top $10 Trillion

The International Energy Agency estimates $10.5 trillion in cumulative investments will be needed between now and 2030 to keep atmospheric CO₂ at 450 ppm and global temperature increases below 2 °C. In a report released last week, IEA says the spending would be for low-carbon energy technologies and energy-efficiency efforts needed to curb the rise of CO₂ levels. Containing climate change, IEA says, requires a "profound transformation" in the energy sector, but the cost will be largely offset by economic, health, and energy security benefits. Global energy bills alone will be reduced by $8.6 trillion with the increased spending, the report says. Without action, IEA says, the world is on track for a temperature rise of 6 °C, which would result in severe climate-change impacts. The data are contained in IEA's "World Energy Outlook 2009," an annual report that lays out practical steps to reach sustainable energy production, according to IEA officials.